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Iraq: high indebtedness and projects stalled and lawsuits
Local governments face the Iraqi financial problems, result in lawsuits between them and the companies, in addition to projects on hold and indebtedness is high, what confuses efforts to encourage investment. The Member of the Board of Wasit province Ala cupper told «life», that «the local governments are facing the problem of debt in the interest of companies, as a result of lack of financial allocations and the large number of projects and the high cost and lack of advance planning».
She added that the parliamentary vote in favor of recycling amounts of previous year's budget to the current year budget, does not solve the problem, which began in 2008, was transferred major projects to implementation and in large amounts, but the competing parties in each other case without allocation of amounts of the contracts, which returned to the budget.
She reported that Wasit province is desperately short of funds, and most of the requirements is satisfied by the proceeds of the border crossing with Iran, which decides allocation of the province, adding that the operating budget allocated to Wasit, and $ 2.3 billion dinars (1.96 million dollars) for the current year, majoring in salaries for members of the Council and the municipal councils .
And according to the instructions, I bought cars for members of the Council of 1.3 billion dinars, while I worked and the Ministry of Finance to withdraw 900 million dinars from the amount of one billion dinars, the remaining, which means that the Treasury maintain contain 100 million dinars only, we do not know how it goes things the city until the end of the year. It continued: «provincial councils, including Wasit, worked to raise many complaints to the central government and the Ministry of Finance, but did not come any response, and the majority of our actions now disabled».
And according to head of the Management Committee and Planning in the governorate of Baghdad, Muhammad al-Rubaie told «life» that 180 billion dinars only remained in the treasury of the capital, and a large part of which will go to pay off previous debts for the benefit of companies, which means that the treasury will be empty during the remainder of the year.
The government has allocated to Baghdad this year, about 647 billion dinars, divided between the province and the Municipality of Baghdad and debt, and allocated 300 billion dinars for the new projects relating to health and infrastructure.
Rubaie confirmed that «the problem of budgets that are repeated each year, lies in the late arrival of funds to the provincial councils, sometimes for six months, as is the case this year, it is difficult to study projects and then transmit them in the remaining period of the year, since any delay means the return of funds to the treasury State, and then face the problem of payment of new projects, or to recover money belonging ».
He pointed out that «most of Iraq debt-ridden round since 2008 because of the explosive plan, according to label the central government at the time, while the amounts allocated to the councils were experiencing political problems, political infighting, Vaneks on the activity of projects and investments».
He wondered about the possibility of expansion of investment in light of these complexities that contribute to the reluctance of companies from investing, pointing out that «the Iraqi government and directed local governments finally to prevent the referral of any project to a local company in the form of a single, required the availability of a foreign partner, the so-called partner ancillary, in their Iraqi company to supervise the foreign company ».
He concluded by saying that «local companies turned to this procedure, as it began to take over implementation of its own, with foreign companies do not have a project in name only and the percentage of profit does not exceed 10 percent, with the knowledge that some projects require international experience».
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Local governments face the Iraqi financial problems, result in lawsuits between them and the companies, in addition to projects on hold and indebtedness is high, what confuses efforts to encourage investment. The Member of the Board of Wasit province Ala cupper told «life», that «the local governments are facing the problem of debt in the interest of companies, as a result of lack of financial allocations and the large number of projects and the high cost and lack of advance planning».
She added that the parliamentary vote in favor of recycling amounts of previous year's budget to the current year budget, does not solve the problem, which began in 2008, was transferred major projects to implementation and in large amounts, but the competing parties in each other case without allocation of amounts of the contracts, which returned to the budget.
She reported that Wasit province is desperately short of funds, and most of the requirements is satisfied by the proceeds of the border crossing with Iran, which decides allocation of the province, adding that the operating budget allocated to Wasit, and $ 2.3 billion dinars (1.96 million dollars) for the current year, majoring in salaries for members of the Council and the municipal councils .
And according to the instructions, I bought cars for members of the Council of 1.3 billion dinars, while I worked and the Ministry of Finance to withdraw 900 million dinars from the amount of one billion dinars, the remaining, which means that the Treasury maintain contain 100 million dinars only, we do not know how it goes things the city until the end of the year. It continued: «provincial councils, including Wasit, worked to raise many complaints to the central government and the Ministry of Finance, but did not come any response, and the majority of our actions now disabled».
And according to head of the Management Committee and Planning in the governorate of Baghdad, Muhammad al-Rubaie told «life» that 180 billion dinars only remained in the treasury of the capital, and a large part of which will go to pay off previous debts for the benefit of companies, which means that the treasury will be empty during the remainder of the year.
The government has allocated to Baghdad this year, about 647 billion dinars, divided between the province and the Municipality of Baghdad and debt, and allocated 300 billion dinars for the new projects relating to health and infrastructure.
Rubaie confirmed that «the problem of budgets that are repeated each year, lies in the late arrival of funds to the provincial councils, sometimes for six months, as is the case this year, it is difficult to study projects and then transmit them in the remaining period of the year, since any delay means the return of funds to the treasury State, and then face the problem of payment of new projects, or to recover money belonging ».
He pointed out that «most of Iraq debt-ridden round since 2008 because of the explosive plan, according to label the central government at the time, while the amounts allocated to the councils were experiencing political problems, political infighting, Vaneks on the activity of projects and investments».
He wondered about the possibility of expansion of investment in light of these complexities that contribute to the reluctance of companies from investing, pointing out that «the Iraqi government and directed local governments finally to prevent the referral of any project to a local company in the form of a single, required the availability of a foreign partner, the so-called partner ancillary, in their Iraqi company to supervise the foreign company ».
He concluded by saying that «local companies turned to this procedure, as it began to take over implementation of its own, with foreign companies do not have a project in name only and the percentage of profit does not exceed 10 percent, with the knowledge that some projects require international experience».
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