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Iraq court ruling is 'threat to democracy'

Iraq readies to protect overseas funds
Baghdad (AFP) Feb 2, 2011 - Iraq has told its central bank to open accounts to transfer hundreds of millions of dollars out of a post-Gulf war US fund to protect the money from foreign claims, a government spokesman said Wednesday. The cabinet also asked MPs to approve a $400-million compensation package for US victims of toppled dictator Saddam Hussein, and set up a mechanism for UN-mandated war reparations to Kuwait, Ali al-Dabbagh said in a statement. "The government asked the central bank to ... open accounts before May 1 to transfer funds," from the Development Fund for Iraq (DFI), he said.

The government approved recommendations "to establish a mechanism to ensure the protection of the money deposited out of Iraq," Dabbagh added. The statement, released Wednesday, came a day after the cabinet meeting. The DFI, which was set up after the 2003 war to handle oil and other revenues, has been protected against claims by a UN resolution that expires on June 30. Dabbagh also said that the cabinet called on the central bank to formulate a "specific and transparent" mechanism to calculate payments to Kuwait. Under UN resolution 1956, Iraq is required to pay five percent of its oil income to Kuwait for reparations stemming from Saddam's 1990 invasion of the neighbouring Gulf emirate. The request for parliamentary approval of the $400-million package, meanwhile, came after Baghdad and Washington agreed on the amount in September, with the money earmarked for Americans who say they were mistreated by Saddam's troops during the Gulf war.

Iraq's August 2, 1990 assault on Kuwait was rapidly met with a concerted international military response that pushed Saddam's forces out of the oil-rich emirate and eventually ended in his ouster by a US-led coalition in 2003. Several US citizens were held by Saddam's regime during the war over Kuwait and used as human shields to deter coalition attacks, with some claiming they were mistreated and tortured by Saddam's forces. "Iraq is keen to fulfill international obligations and to put an end to the results of previous policies," Dabbagh said. On December 15, the UN Security Council ended key international sanctions imposed on Iraq in a major move toward bringing closure on the Saddam era. Three council resolutions halted punishing international restrictions to prevent weapons of mass destruction proliferation, ended the UN oil-for-food program for Iraq, and mandated the closure of the DFI at the end of June.
by Staff Writers
Baghdad (AFP) Feb 2, 2011
Iraq's parliament speaker on Wednesday warned that a court ruling placing bodies such as the central bank under ministerial control was a danger to democracy, and threatened to revamp the judiciary.

Osama al-Nujaifi's remarks came as a local media outlet published a 2006 letter showing Iraq's top judge seeming to contradict last month's decision to tie several independent bodies to the cabinet, a ruling which has sparked criticism that Prime Minister Nuri al-Maliki is trying to consolidate power.

"We think that there is now a real threat to the constitution and democracy as a result of the court's decision," said Nujaifi at a news conference at the Council of Representatives in Baghdad's heavily-fortified Green Zone.

"The parliament will present in the coming days a draft law to reform the composition of the supreme court and the Higher Judicial Council," he added. The latter body oversees Iraq's courts.

Nujaifi did not elaborate, however, on whether that meant sacking judges or reforming how they were selected in future.

Among the other agencies affected by the January 18 supreme court decision are the anti-corruption watchdog, the media regulator and the human rights commission. The ruling followed a request for clarity on the relevant constitutional clause by Maliki's office.

It spurred critics of Maliki to accuse him of consolidating power while the bodies themselves have voiced concern, saying they have lost their independence.

The court argued they should be answerable to the cabinet instead of parliament because their work was executive in nature.

"It is unreasonable that the Integrity Commission (the anti-corruption agency), which monitors the work of the government and the state, is linked to any other body," Nujaifi said. "That would kill its work."

"The communications and media commission, the central bank, the human rights commission -- its unreasonable to link all these bodies to the executive authority. And also the election commission, how can it be linked to the government?"

Nujaifi is an MP with the Sunni-backed Iraqiya bloc, which won the most seats in Iraq's March 7 election but was unable to form a government because Maliki, whose political group came a narrow second in the polls, joined forces with a pan-Shiite coalition to trump Iraqiya's total.

His remarks came on the same day the independent Sumeria news agency published a letter written by Medhat al-Mahmud, the top judge on Iraq's supreme court and head of the Higher Judicial Council, to the Integrity Commission on September 23, 2006.

"The commission submits to the parliament in carrying out its missions, and the parliament is the only body that has the right to question it," Mahmud wrote in the letter, appearing to contradict the January verdict.

"The Integrity Commission manages itself in accordance with its independence, like the central bank," he added at the time.

Judicial spokesman Abdelsattar Birakdar, who confirmed the letter was legitimate, insisted the January ruling was complementary to the 2006 letter, and that the two documents were not incompatible.

"The first letter emphasised that the committees are subjected to monitoring by the parliament," he told AFP. "The recent one also said this, but also explained which body the independent agencies are linked to."

"There is no contradiction," he added, without elaborating further on the impact of linking the agencies to Iraq's cabinet.

Maliki has defended the court ruling and said reversing it was "impossible".

Among the most prominent critics of the move was central bank governor Sinan al-Shebibi, who warned on January 25 that the ruling threatened Baghdad's assets overseas.

With the central bank tied to the cabinet and its independence in doubt, according to Shebibi, its accounts would be seen as an extension of the Iraqi government, and exposed to claims by Iraq's creditors.



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