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Zebari informs UNSC of post DFI arrangements, including compensation money
UNITED NATIONS, Iraqi Foreign Minister Hoshyar Zebari informed the Security Council that his Government has taken the necessary arrangements for the post Development Fund for Iraq (DFI), whose UN supervision ends later this month, including for the five percent of oil sales to be deposited in the Compensation Fund.
Zebari annexed to a letter to Council President, Gabon, circulated on Tuesday, a report containing measures and decisions Baghdad took towards a "full and effective" transition to a post-Development Fund mechanism that will enable Iraq to fulfill its obligations under relevant Council resolutions.
The Council decided last December in resolution 1956 to terminate, on June 30 2011, the arrangements for depositing into the DFI proceeds from Iraqi oil and natural gas sales, and called on Baghdad to finalize the "full and effective" transition to a post DFI mechanism, including external auditing arrangements, and continue to pay the five percent to the victims of the Iraqi invasion of Kuwait in 1990.
"We should like to inform the Security Council that the Government of Iraq has completed the arrangements that will ensure full and effective transition to such a mechanism," Zebari wrote in his letter to Council President.
Those measures, he indicated, include arrangements for the external auditing of accounts; deduction of the five percent compensation percentage "or any other lesser percentage;" and settlement of the foreign debts of Iraq.
He explained that in replacement of the DFI account, a new account will be opened in the name of the Government of Iraq, to be held by the Central Bank of Iraq at the US Federal Reserve Bank, and transfer will be made to that new account of all the financial assets currently held in the DFI and any other Iraqi Government assets.
Concerning proceeds from export sales of oil and natural gas, he said the UN Secretariat "will be consulted with a view to finding a transparent mechanism to ensure that five per cent or any other lesser percentage is deducted and deposited to the UN Compensation Fund".
This will also ensure that Iraq will be able to continue to meet its UN obligations, he said.
As to the arrangements for the external auditing, Zibari said a request was made and proposals were received from four firms to audit the DFI successor account. They are Ernst Young; PricewaterhouseCoopers; KPMG; and Deloitte.
Among other arrangements, he said, the Iraqi Committee of Financial Experts will replace the International Advisory and Monitoring Board (IAMB) starting July 1, 2011.
He finally said that Iraq will continue its serious attempts to settle its foreign debts in accordance with the Paris Club agreement that was signed in November 2004.
KUNA learned that Iraq will send a delegation later this month to discuss with the UN Secretariat this and other issues.
In a related matter, it was announced here that Under-Secretary General for Political Affairs, Lynn Pascoe returned to New York today after a three-day visit to Iraq where he held discussions with senior Iraqi officials and leaders in Baghdad, Kirkuk and Erbil, as well as with the UN Mission for Iraq (UNAMI).
A UN spokesman said that in his discussions, including with Prime Minister Nouri Al-Maliki, Pascoe emphasized the UN readiness and willingness to continue providing all necessary assistance to help build a "stable and prosperous democracy for all Iraqis".[You must be registered and logged in to see this link.]
UNITED NATIONS, Iraqi Foreign Minister Hoshyar Zebari informed the Security Council that his Government has taken the necessary arrangements for the post Development Fund for Iraq (DFI), whose UN supervision ends later this month, including for the five percent of oil sales to be deposited in the Compensation Fund.
Zebari annexed to a letter to Council President, Gabon, circulated on Tuesday, a report containing measures and decisions Baghdad took towards a "full and effective" transition to a post-Development Fund mechanism that will enable Iraq to fulfill its obligations under relevant Council resolutions.
The Council decided last December in resolution 1956 to terminate, on June 30 2011, the arrangements for depositing into the DFI proceeds from Iraqi oil and natural gas sales, and called on Baghdad to finalize the "full and effective" transition to a post DFI mechanism, including external auditing arrangements, and continue to pay the five percent to the victims of the Iraqi invasion of Kuwait in 1990.
"We should like to inform the Security Council that the Government of Iraq has completed the arrangements that will ensure full and effective transition to such a mechanism," Zebari wrote in his letter to Council President.
Those measures, he indicated, include arrangements for the external auditing of accounts; deduction of the five percent compensation percentage "or any other lesser percentage;" and settlement of the foreign debts of Iraq.
He explained that in replacement of the DFI account, a new account will be opened in the name of the Government of Iraq, to be held by the Central Bank of Iraq at the US Federal Reserve Bank, and transfer will be made to that new account of all the financial assets currently held in the DFI and any other Iraqi Government assets.
Concerning proceeds from export sales of oil and natural gas, he said the UN Secretariat "will be consulted with a view to finding a transparent mechanism to ensure that five per cent or any other lesser percentage is deducted and deposited to the UN Compensation Fund".
This will also ensure that Iraq will be able to continue to meet its UN obligations, he said.
As to the arrangements for the external auditing, Zibari said a request was made and proposals were received from four firms to audit the DFI successor account. They are Ernst Young; PricewaterhouseCoopers; KPMG; and Deloitte.
Among other arrangements, he said, the Iraqi Committee of Financial Experts will replace the International Advisory and Monitoring Board (IAMB) starting July 1, 2011.
He finally said that Iraq will continue its serious attempts to settle its foreign debts in accordance with the Paris Club agreement that was signed in November 2004.
KUNA learned that Iraq will send a delegation later this month to discuss with the UN Secretariat this and other issues.
In a related matter, it was announced here that Under-Secretary General for Political Affairs, Lynn Pascoe returned to New York today after a three-day visit to Iraq where he held discussions with senior Iraqi officials and leaders in Baghdad, Kirkuk and Erbil, as well as with the UN Mission for Iraq (UNAMI).
A UN spokesman said that in his discussions, including with Prime Minister Nouri Al-Maliki, Pascoe emphasized the UN readiness and willingness to continue providing all necessary assistance to help build a "stable and prosperous democracy for all Iraqis".[You must be registered and logged in to see this link.]
