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Iraqi Kurdistan oil ministry rejects allegations of corruption and misuse of power
9/9/2015
ERBIL-Hewler, Kurdistan region ‘Iraq’,— Iraqi Kurdistan Region’s Ministry of Natural Resources (MNR) has rejected allegations of corruption and misuse of power by a senior parliamentarian, after claims that up to hundreds of millions of dollars in oil revenue is missing from the region’s bank accounts. In a statement provided to NRT, the MNR said it “totally rejects” Finance and Economic Affairs Committee Deputy Ali Hama Salih’s accusations and “challenges him to quickly produce his so-called evidence,” adding it would launch legal proceedings if he failed to do so. Speaking to NRT on Sept. 4, Salih said Kurdish lawmakers had evidence that Minister of Natural Resources Ashti Hawrami had cost the region “hundreds of millions of dollars” and that MPs were planning to summon him for a hearing on allegations of corruption.
“The evidence shows monopoly, corruption and misuse of power by the ministry,” Salih said, adding that MPs could possibly bring a vote for the minister’s dismissal.
Salih himself is embroiled in corruption allegations following claims by the MNR that he tried to negotiate a deal between the KRG and a business group that wanted $1.5 billion upfront for a $10 billion prepayment on oil deliveries.
MNR officials sent a letter describing the deal to Kurdistan Parliament Speaker Yousif Mohammed on August 20, which detailed how the men claimed to represent a “wealthy person in the Gulf,” the document stated.
Following an investigation into the matter, the MNR said it found the men’s claims baseless, as well as a slew of lawsuits from former business associates, prison sentences and convictions of fraud and connections to an identity theft scam in Nigeria.
KRG oil sector ‘clear and transparent’
Senior officials have repeatedly claimed the Kurdistan Regional Government (KRG) maintains a policy of transparency and abides by the Kurdistan Oil and Gas Law (No. 22, 2007) in its dealings.
“The process of oil production, exports, selling and returning its revenue to the Kurdistan Region is quite clear and transparent,” KRG spokesman Safeen Dizayee said in a recent statement.
MNR authorities have also denied claims that unregistered companies are operating in the region and have blamed political infighting for affecting oil revenues.
KRG oil exports continued to drop in August, averaging 472,832 barrels per day (bpd) for the month – down from a 2015-high of 577,621 bpd in May.
In two press releases issued in August, the MNR said the KRG suffered combined losses of $501 million in potential revenue from oil sales between July 1 and August 17 due to “repeated attempted thefts and sabotage attacks” on pipelines carrying the region’s crude oil to Ceyhan Port in Turkey.
Fighters from the armed wing of the Kurdistan Workers’ Party (PKK) claimed responsibility for a series of attacks on the transport pipeline in late July in what were believed to be retaliatory attacks for perceived KRG complacency as Turkey resumed airstrikes on guerrilla bases inside Iraqi Kurdistan.
That and a political crisis regarding the region’s presidency have affected sales of Kurdish oil in international markets Minister Hawrami said on NRT’s Tawtwe program in August.
“We created the crisis ourselves,” Hawrami said, adding that media reports of a possible early election have affected sales and investor confidence in the region’s oil sector.
Despite the ongoing power struggle among the region’s major political parties, officials in the Ministry of Finance say the region’s bank accounts are empty and have not been receiving deposits from oil sales.
In a letter obtained by NRT, dated July 9, 2015 and signed by Nechirvan Barzani, the KRG Prime Minister gave Finance and Economy Minister Rebaz Mohamad Abdulla authority to deal directly with Halk Bank in Turkey, where oil export revenues are deposited.
“Please be advised that effective from July 9, 2015, Mr. Rebaz Mohamad Abdulla, the KRG Finance Minister shall be sole signatory for transferring funds out of the KRG’s accounts,” the letter stated.
The document further said that Hawrami would continue to be authorized “to direct all the oil sales proceeds and any other related oil revenues” to the KRG’s accounts with Halk Bank.
However, following a visit to Halk Bank in Turkey last week, Abdulla said he found the KRG accounts empty, except for $14 million, which had remained from deposits made in 2014.
PM Barzani dismissed the issue in a press conference Monday, saying it was normal for funds to be deposited and withdrawn from the accounts
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9/9/2015
ERBIL-Hewler, Kurdistan region ‘Iraq’,— Iraqi Kurdistan Region’s Ministry of Natural Resources (MNR) has rejected allegations of corruption and misuse of power by a senior parliamentarian, after claims that up to hundreds of millions of dollars in oil revenue is missing from the region’s bank accounts. In a statement provided to NRT, the MNR said it “totally rejects” Finance and Economic Affairs Committee Deputy Ali Hama Salih’s accusations and “challenges him to quickly produce his so-called evidence,” adding it would launch legal proceedings if he failed to do so. Speaking to NRT on Sept. 4, Salih said Kurdish lawmakers had evidence that Minister of Natural Resources Ashti Hawrami had cost the region “hundreds of millions of dollars” and that MPs were planning to summon him for a hearing on allegations of corruption.
“The evidence shows monopoly, corruption and misuse of power by the ministry,” Salih said, adding that MPs could possibly bring a vote for the minister’s dismissal.
Salih himself is embroiled in corruption allegations following claims by the MNR that he tried to negotiate a deal between the KRG and a business group that wanted $1.5 billion upfront for a $10 billion prepayment on oil deliveries.
MNR officials sent a letter describing the deal to Kurdistan Parliament Speaker Yousif Mohammed on August 20, which detailed how the men claimed to represent a “wealthy person in the Gulf,” the document stated.
Following an investigation into the matter, the MNR said it found the men’s claims baseless, as well as a slew of lawsuits from former business associates, prison sentences and convictions of fraud and connections to an identity theft scam in Nigeria.
KRG oil sector ‘clear and transparent’
Senior officials have repeatedly claimed the Kurdistan Regional Government (KRG) maintains a policy of transparency and abides by the Kurdistan Oil and Gas Law (No. 22, 2007) in its dealings.
“The process of oil production, exports, selling and returning its revenue to the Kurdistan Region is quite clear and transparent,” KRG spokesman Safeen Dizayee said in a recent statement.
MNR authorities have also denied claims that unregistered companies are operating in the region and have blamed political infighting for affecting oil revenues.
KRG oil exports continued to drop in August, averaging 472,832 barrels per day (bpd) for the month – down from a 2015-high of 577,621 bpd in May.
In two press releases issued in August, the MNR said the KRG suffered combined losses of $501 million in potential revenue from oil sales between July 1 and August 17 due to “repeated attempted thefts and sabotage attacks” on pipelines carrying the region’s crude oil to Ceyhan Port in Turkey.
Fighters from the armed wing of the Kurdistan Workers’ Party (PKK) claimed responsibility for a series of attacks on the transport pipeline in late July in what were believed to be retaliatory attacks for perceived KRG complacency as Turkey resumed airstrikes on guerrilla bases inside Iraqi Kurdistan.
That and a political crisis regarding the region’s presidency have affected sales of Kurdish oil in international markets Minister Hawrami said on NRT’s Tawtwe program in August.
“We created the crisis ourselves,” Hawrami said, adding that media reports of a possible early election have affected sales and investor confidence in the region’s oil sector.
Despite the ongoing power struggle among the region’s major political parties, officials in the Ministry of Finance say the region’s bank accounts are empty and have not been receiving deposits from oil sales.
In a letter obtained by NRT, dated July 9, 2015 and signed by Nechirvan Barzani, the KRG Prime Minister gave Finance and Economy Minister Rebaz Mohamad Abdulla authority to deal directly with Halk Bank in Turkey, where oil export revenues are deposited.
“Please be advised that effective from July 9, 2015, Mr. Rebaz Mohamad Abdulla, the KRG Finance Minister shall be sole signatory for transferring funds out of the KRG’s accounts,” the letter stated.
The document further said that Hawrami would continue to be authorized “to direct all the oil sales proceeds and any other related oil revenues” to the KRG’s accounts with Halk Bank.
However, following a visit to Halk Bank in Turkey last week, Abdulla said he found the KRG accounts empty, except for $14 million, which had remained from deposits made in 2014.
PM Barzani dismissed the issue in a press conference Monday, saying it was normal for funds to be deposited and withdrawn from the accounts
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