Having Russian & American Arms and fearing Al_Shabibi

Muqtada Sadr criticises PM Maliki for central bank interference, arms deals with Russia, Czechs http://jawabna.com/index.php?news=5475 … Iraq PM Maliki attacks lawyers who dare defend "terrorists & other criminals"! http://youtu.be/vUgAgd3OmZs CBI governor is not just any Shia too, he is the son of sheikh Mohamad Ridah Alshabibi http://en.wikipedia.org/wiki/Sinan_Al_Shabibi … #Iraq:Parli. Integrity source: CBI governor dismissed for refusing to lend government $63 Billions to help# Iran&#Syria http://goo.gl/Mgarq مصدر: الشبيبي أقيل لأنه رفض إعطاء الحكومة 63 مليار دولار بغداد/ مؤيد الطيب أفاد مصدر من لجنة النزاهة النيابية بأن "إقالة محافظ البنك المركزي سنان الشبيبي كانت ردة فعل بسبب رفضه إقراض حكومة نوري المالكي 63 مليار دولار من احتياطي البنك". وأوضح المصدر الذي فضل عدم الكشف عن اسمهِ في تصريح لـ"المدى" إن "الأموال التي أرادتها الحكومة كان سيتم تهريبها إلى إيران وسوريا، لحل مشكلة إيران الاقتصادية ودعم الحكومة السورية لإنهاء ثورة الشعب السوري ضد نظام الأسد". وبين المصدر أن "الشبيبي كان قد طلب في وقت سابق من مجلس رئاسة الوزراء إقالة أربعة موظفين في البنك، وهم مدير الدائرة القانونية ومدير الدائرة الاقتصادية ومدير دائرة غسيل الأموال ومدير دائرة المصارف، ورفض نوري المالكي طلبه بسبب قرب أولائك الموظفين منه". وأكد عضو لجنة النزاهة في البرلمان النائب عن كتلة المواطن عزيز العكيلي أن "لجنة النزاهة طالبت بأن تناقش قضية سنان الشبيبي قبل عطلة العيد وانتهاء الفصل التشريعي، لكن حدث تلكؤ في الأمر دعا البرلمان لتأجيل المناقشة بعد العطلة". وأوضح العكيلي في تصريح لـ"المدى" أمس أن "الفصل الرابع من الدستور بمواده المرقمة من 102 إلى 108 نظم عمل الهيئات وطريقة التعامل معها، والمادة 103 تنص وبوضوح على استقلالية البنك المركزي، وأن يكون مسؤولاً أمام مجلس النواب، ويرتبط ديوان الرقابة المالية، وهيئة الإعلام والاتصالات بمجلس النواب أيضاً، لكن ما تعمل عليه الحكومة هو أن تربط كل هذه الهيئات بها، وهذا هدم للأسس الديمقراطية". وأشار العكيلي إلى أن "خطط الحكومة في ربط الهيئات المستقلة بدأت منذ فترة طويلة حين أقالوا القاضي رحيم العكيلي من منصبه كرئيس لهيئة النزاهة وتوجيه التهم له واستبداله بشخص آخر يكون بيد الحكومة، وبعدها تم تلفيق 124 تهمة لرئيس المفوضية العليا للانتخابات فرج الحيدري وإبعاده عن منصبه، وهذا ما يحصل الآن مع سنان الشبيبي من تلفيق للتهم والأمر بإقالته وتنصيب من يحل مكانه ويكون بيد الحكومة من أجل السيطرة على البنك المركزي". وأضاف العكيلي إن "هذه الطريقة في التعامل مع رؤساء الهيئات المستقلة هو (جرة إذن) من قبل الحكومة لتتعامل بها مع من يحل مكانهم، وهذا دليل على أن النظام الديمقراطي في خطر كبير. Sinan Al Shabibi From Wikipedia, the free encyclopedia Jump to: navigation, search Sinan Al-Shabibi Dr. Sinan Al-Shabibi (Arabic: الدكتور سنان الشبيبي‎) is the current governor of the Central Bank of Iraq. He has held this position since 2003. Born in Baghdad on 1 July 1941 and son of the prominent Iraqi figure Mohammed Ridha Al-Shabibi, Dr. Al-Shabibi holds a B.Sc. in Economics from Baghdad University (1966), a Diploma in Advanced Studies in Economic Development, an M.A. in Economics from the University of Manchester (1970, 1971), and a Ph.D. in Economics from the University of Bristol (1975). From April 1977 to December 1980, Sinan Al-Shabibi was the Chief of plan Preparation and Co-ordination Division at the Iraqi Ministry of Planning, and from May 1975 to March 1977 he worked as the Head of Imports and Marketing Section at the Iraqi ministry of oil. Immediately after the start of the Iran–Iraq War, he moved to Geneva in Switzerland where he spent from December 1980 to October 2001 working as a Senior Economist in the United Nations Conference on Trade and Development (UNCTAD). On August 1, 2002 Al-Shabibi testified among other witnesses at the Hearing Before the Senate Foreign Relations Committee about possible military action in Iraq. The topics that he addressed were the state of the Iraqi economy and its stabilization post a possible military campaign. Contents [hide] 1 Governor of the Central Bank of Iraq 2 Publications 3 Awards 4 External links [edit] Governor of the Central Bank of Iraq Since taking over as central bank governor, Al-Shabibi, has introduced the bank's employees to modern finance. He has made the bank switch from typewriters and calculators to computers, introduced it to financial instruments like currency auctions and replaced Iraq's pre-2003 banknotes with the New Iraqi Dinar between October 2003 and January 2004. In the effort to further modernize the Central Bank of Iraq, Al-Shabibi appointed Baghdad-born architect Zaha Hadid in August 2010 to design the new headquarters for the Central Bank in Baghdad. On February 2, 2012 Zaha Hadid joined Dr Sinan Al‐Shabibi at a ceremony in London to sign the agreement between the Central Bank of Iraq and Zaha Hadid Architects for the design stages of the new CBI Headquarters building. Until today and despite a highly uncertain domestic and external environment, Al-Shabibi has held the Iraqi currency, the Iraqi Dinar firm at about 1,170 to the U.S. dollar, reduced inflation to single digits, and remained a strong advocate of central bank independence. The implementation of these policies combined with the rise in oil revenues have helped to increase foreign exchange reserves to nearly US$63 billion (as of March 2012) supporting further Iraq's Macroeconomic stability. [edit] Publications "Globalisation of Finance: Implications for macroeconomic policies and debt management", March 2001, Paper presented to a conference on "Globalization and the Gulf organized by the institute of Arab and Islamic Studies, University of Exeter, England, 2–4 July 2001. "Prospects for the Iraqi Economy: Facing the new reality". Paper presented to a conference on "The Future of Iraq", organized by the Middle East Institute, Washington. The paper was published in a book with the same title in November 1997 and reprinted in the UNCTAD secretariat. It deals with the effect of sanctions, debt, and war reparations on the future prospects of the Iraqi economy. "The Arab share in OPEC Aid: Some related facts" in Arabic, in Al-Mustaqbal Al-Arabi, Centre of Arab Unity Studies, Beirut, September 1988. "OPEC Aid, Issues and Performance" in the OPEC review, Vienna, spring 1987. [edit] Awards Arabian Business Power 500 - Listed among The World's Most Influential Arabs, June 2012., Arabic version - بالعربية Arabian Business Power 500 - Listed among The World's Most Influential Arabs, March 2011., Arabic version - بالعربية The New Breed/Listed among the Time-CNN 25 Business Influentials, December 2004. [edit] External links Sinan Al-Shabibi on the Iraqi Central Bank Website Zaha Hadid Architects and Central Bank of Iraq sign agreement for new headquarters Sinan Al-Shabibi during the signature of the US-Iraq Bilateral Debt Agreement Related topics - Bloomberg/BusinessWeek Related topics - Iraq Business News Related topics - Economy of Iraq Related topics - Politics of Iraq Pope Allies With Ayatollahs In # Syria Mediation Effort http://www.al-monitor.com/pulse/politics/2012/10/pope-benedict-ayatollah-sistani-to-mediate-syria-crisis.html ======= Font Size: 10/20/2012 (17:02 pm) - The number of readings: 103 - Issue (2628) Puzzle Central Bank and the crisis of the state  Yahya Kubaisi In May 2009 I wrote an article entitled "The budget deficit crisis or crisis policies," was dedicated to the discussion of the adoption of the federal budget crisis in 2009. That day was the confrontation between government and Mrdia, or for the transfer of Mr. al-Maliki and his disciples of the leaders of the Dawa Party, has begun to take shape over the central bank's refusal to lend the government to finance the deficit, and his insistence on enforcing its law, which prohibits lending to the government. And I said at the end of the article that this trend has two choices only two: First: that goes to the overthrow of the head, or headers parties that insist on the application of the Central Bank Law, which prohibits lending the government, through the campaign populist talk about ignoring the bank problems (the Iraqi people) financial and economic, and then assign people (and realistic) accept condoning any legal violation. Any overthrow of the independence of the bank, which is a systematic policy adopted more than once. Second: that the deliberate government to amend the law on the bank, allowing them to rely on the general reserve as just additional treasury building on the common culture among political elites in Iraq that the law was "just a line we write and Nmsha" as summed up by Saddam Hussein. We then said that both options is devoted to the lack of logic of the state in Iraq. Started all this at a time when there were Mr. al-Maliki and his admirers were "open mandate" from the Federal Court to dominate the "independent bodies" (Federal Court decision No. 88 on 18/1/2011). At the time of Mr. al-Maliki is not absolute may dominate the Iraqi judiciary, at a time when Mr. al-Maliki and admirers are keen to build strategic alliances with the Kurdistan Alliance in the face of the "others," At a time when the vocabulary of "partnership" and "compatibility" master of the situation. Today all that has changed. Returning to the puzzle central bank, it may seem obvious that we are not against the decision of the Council of Ministers commissioned Mr. Abdul Basit Turki take over as central bank governor and agency, but in front of a personal decision of Mr. Maliki isolating Shabibi, and our guide on that Cabinet decisions of the meeting No. 45 in the 10 / 16/2012 published on the prime minister was empty of any reference to this assignment supposed. In addition, the source of this news was Mr. Ali al-Moussawi, media advisor to the Prime Minister and not the official spokesman for the Council of Ministers, and the first has no status in relation to the Council of Ministers! But more than that, this decision was contrary to the stated in the other decision of the Council of Ministers at the same meeting approved the recommendations of the committee studying the fluctuations Iraqi dinar exchange rate, also taking, and more importantly, the proposals the central bank to form "a committee headed by a representative of the Office of Financial Supervision and the membership of representatives the ministries of interior, finance, commerce and the Iraqi Central Bank and the General Secretariat of the Council of Ministers shall audit and review processes sell the currency for the purpose of locating bugs if any and the strengths and weaknesses and how to take advantage of the amounts sold and fits in with the quantity of goods and services within and propose actions to reduce leakage rates for a purpose other than the aforementioned. " This means that the Council of Ministers in a meeting on 16.10.2012 did not have any data on the presence of a defect in the sale process, and then formed a committee to audit and review the sale process to determine the defect "if"!. Then how can resolve this glaring contradiction? The most important question here is also Does the Council of Ministers, or Mr. Prime Minister, the validity of the dismissal, or "pull a hand!" Central Bank Governor originally? A review of Iraqi Central Bank Law (Order No. 56 issued in March 2004) reveals that the Prime Minister is not entitled to do dismiss the central bank governor and his deputies or any member of the Board of Directors of the Bank only in 9 cases only 4 of these cases is the issuance of court rulings conviction (Article 14/2 / a, b, c, e), in the case of disqualification or stop practice (Article 14/2 / d), in the case of obvious violation of the terms of appointment in office (Article 14/2 / f, g , h) and, finally, in the case of absence from attending meetings of the Council (Article 14/2 / i). In addition, the law itself gives in Article 23 "legal immunity" for members of the Board of Directors of exposure to legal accountability "for any damages occurred due to any negligence or conduct issued him while performing his duties or in order to play official duties within the scope of his job and his obligations specified him under this law. " The third argument is the version the supervisor of the Media Centre of the judiciary Abdul Sattar Bayraktar on Thursday, 18/10/2012 clarification that "Mr. Shabibi case currently pending before a judicial organ of the Court of integrity in Rusafa." He then returned the same supervisor to declare on Friday, 19/10/2012, "the Iraqi authorities [!] Issued arrest warrants [!] The right of the central bank governor of the former Iraqi [!] Shabibi and some other officials" (Alsumaria News 10/19/2012). Of course not ask why use the term "Iraqi authorities" and not the Iraqi judiciary, and why Single "arrest" and not "arrest", and why also use the word "former" in the statement and the man did not say? We will try here to discover how become a matter of mere investigative committees to the integrity of the court and then the decision of arrest!!! As stated in the above, did not provide the committee studying the fluctuating exchange rate of the Iraqi dinar any evidence of a "glitch" in the work of the Central Bank of Iraq. The second investigative committee set up by the Iraqi Council of Representatives in August 2012, it did not submit its report to the Council for discussion and it has been decided that Article 85 of the Rules of Procedure of the House of Representatives "to take whatever action it deems appropriate." Since the Commission has not presented its report and recommendations to the Board a society, all what has been announcing the results of this report in the media is just the personal opinions of the Committee member does not count without the approval of the Council. The puzzle that emerges here is how I jumped Court of integrity to the topic, and it referred the case? Are we to transmit file of the Integrity Commission, which is responsible under its exclusive for investigating corruption cases, to the Federal Court? And if so what is the secret of this strange speed in the completion of this file, and we know that Mr. Speaker had met with the head of the Integrity Commission in 11.10.2012 and urged it "to maintain the integrity of transparency and disciplinary investigation file of the central bank and that there should be high coordination with the competent judicial authorities to get the job done accurately and the need not to leak information resulting from the investigation before the completion of the work. " How can we speak of the end of the file without investigating corruption alleged the defendants in this corruption before being referred to the judiciary? Then what source told the Attorney Haitham al-Jubouri in 10/14/2012 on arrest warrants were issued and travel ban against Central Bank Governor Sinan al-Shabibi and officials at the bank, and notes the correspondence between a statement Jubouri statement Bayraktar! How can we interpret what the Iraqi List MP Nabil Hrbo that "the presidency of the House of Representatives received a book order Diwani of the Council of Ministers demanding refer Central Bank Governor Sinan al-Shabibi and the number of employees in the bank to eliminate according to Article 340," which raises a question mark a real and serious On the principle of separation of powers, if a judicial decision was not to the legislative authority of any role in this matter! We have also provided at the beginning are not here in front of an isolated case related to fluctuating currency rates, or auction currency, but before the full context of attempts to dominate the Central Bank of Iraq, which has remained relatively far with the Electoral Commission for elections for control of Mr. Maliki after that could last dominate independent bodies (the Integrity Commission, the CMC), practically across the insulation and appointment procedures, and legally through the decisions of the Federal Court. And a quick review of this context only for the year 2012 reveal sharpen this pressure toward "fit" the central bank, has sent the General Secretariat of the Council of Ministers in 3/15/2012 letter to Central Bank Governor asking him where to "provide the monetary policy of the Central Bank of the Council of Ministers to inform the Council and approval and the failure to adopt policies without the approval of the Council of Ministers in the future "in clear violation of the central bank law in force. This pressure has prompted Mr. Speaker, Mr. Osama Najafi to talk to the Governor of the Central Bank more than once to confirm the independence of the bank. In addition, the issue dominating the central bank has been part of the vocabulary of the conflict between the President of the Kurdistan Region and the federal prime minister. Finally I would like to ask is innocent question: Is the Central Bank reserves of 67 billion dollars in compensation to Mr. al-Maliki in the case of the inability to pass a law infrastructure and payment on credit, and we are in front of treasury bonds in the amount of $ 37 billion for this purpose? Once again there is no point able to stop this flagrant violation of the Constitution and the law, and once again be sacrificed to the logic of the state. Is there tell me where we are going? ====== Ex-CBI chief: govt wants reserves Published November 10, 2012 Prashant Rao reports for AFP: The ex-chief of Iraq's central bank has dismissed charges against him as baseless in an interview with AFP and said authorities had compromised the bank's independence to access its reserves. Sinan al-Shabibi said the government had been "spoiled" by a stable exchange rate for several years, and a warrant for his arrest for suspected mismanagement of the Central Bank of Iraq and currency manipulation had blown relatively minor foreign exchange fluctuations out of proportion. Ex-Iraq bank chief says govt wants reserves By Prashant Rao (AFP) – 1 day ago BAGHDAD — The ex-chief of Iraq's central bank has dismissed charges against him as baseless in an interview with AFP and said authorities had compromised the bank's independence to access its reserves. Sinan al-Shabibi said the government had been "spoiled" by a stable exchange rate for several years, and a warrant for his arrest for suspected mismanagement of the Central Bank of Iraq and currency manipulation had blown relatively minor foreign exchange fluctuations out of proportion. Shabibi's remarks come weeks after he was replaced as governor while overseas and warrants were issued for his arrest and those of other bank officials in what diplomats and analysts have interpreted as a power grab by Prime Minister Nuri al-Maliki. The premier's office has insisted it was not behind the moves.

"Since 2009, they wanted to fire me, and they wanted money from the reserves," Shabibi said in a telephone interview from Geneva. "I think the main problem... is basically the reserves, because they thought we have a lot of reserves, and they want to use it for financing." He added: "The government wanted some money from the central bank... Of course, the law does not allow that, the central bank law. "And of course, they say that there are differences in exchange rate policy. I don't think these differences require firing the central bank governor." Asked if the warrants for him and other officials affected the bank's independence, Shabibi replied: "I'm sure, yes." He declined to name any government official directly, but said: "They always have been talking about the fact that they should supervise the monetary policy, they should actually decide on many, many, many components of that policy, all these things." The 70-year-old economist, who worked for two decades at the UN trade and investment body UNCTAD and had been central bank governor since 2003, has been described by analysts as a capable technocrat who fought to maintain the bank's independence. Shabibi said he intended to return to Iraq to fight the charges, but would only do so if the arrest warrant was lifted. He noted that the government could not fire him, a power which by law rests with parliament. He also dismissed the charges of currency manipulation or mismanagement as trumped up, comparing relatively minor fluctuations in the value of the Iraqi dinar to greater changes to the values of the US dollar or the euro. "I told them (the government) the central bank was not the reason for this fluctuation, that it is part of the range," he said. "Eventually we succeeded in stabilising the exchange rate, only two or three percent difference. "I told them, look, go to Europe now and see the difference." He continued: "They were spoiled by the stability of the exchange rate (in recent years), and they used this against the central bank. They did not find any other faults, any problems. They said this is the problem, and they branded that as a failure of the central bank." Shabibi said he did not know how long the proceedings against him would go on, saying only: "Let us wait and see." Iraq's currency has been largely stable against the dollar for the past few years at around 1,200 dinars.

But Iraq's cabinet decided last month to replace him with Abdelbassit Turki, the head of the Board of Supreme Audit, on an interim basis, after a parliamentary inquiry accused him and other bank officials of currency mismanagement. Along with the accusations over the fluctuation in the value of the dinar, concerns have been raised that currency auctions organised by the central bank have been used by neighbouring Iran and Syria to shore up foreign currency reserves, allegations the central bank has denied. It nevertheless tightened its rules on the purchase of dollars earlier this year, requiring banks to provide the identity of individuals or organisations buying them, as well as other information. Copyright © 2012 AFP. All rights reserved ================================================ They're buying what? U.S. investors latch onto Iraqi dinar Thu, Nov 15 19:27 PM EST By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) - The U.S. stock market almost wiped out his retirement account, but retired pilot Ronald Scarpa hasn't lost his taste for risk. Lately he has turned to one of the chanciest investments in the world - the Iraqi dinar. "It's not a question of if, but when Iraq revalues its currency," said the Las Vegas-based Scarpa, who keeps dinars in his retirement account. "The dinar will eventually have substantial value, possibly the highest in the world." He's not alone in risking his money on an investment that can charitably be described as a long-term turnaround project that will pay off only for the extremely patient. Thousands like Scarpa in America are buying the dinar, hoping someday the war-torn nation can revalue a currency worth just a fraction of a penny. The fundamentals for buying the dinar are precarious. The United States invaded the country in 2003 and has only recently removed most of its troops. The country's political situation remains unstable, and destabilization in the Middle East - most recently with rockets fired between Israel and the Gaza Strip - could undermine the fledgling republic further. U.S. retail investors' interest in Iraq's currency is part of a broad push for investment opportunities that will give some yield. Most of them cite near-zero interest on their U.S. savings and certificates of deposits as a reason for buying dinars and other exotic currencies. The dinar, worth just a tenth of one U.S. cent, is experiencing additional downward pressure as a result of international economic sanctions imposed on neighboring Iran and Syria. Also, buying the dinar is a task in and of itself. The currency is only traded in Iraq, so it can only be purchased by U.S. customers through a handful of dealers around the U.S. who get their dinars from Iraqi banks. If a customer wants to sell his dinars, the dealer will only buy it back at a 30 percent discount - so no quick trades here. But Scarpa said he is prepared to wait. The country has the second-largest oil reserves in the Middle East and exports 3.4 million barrels of oil per day, making it one of the world's largest oil producers. "If the dinar rises to just even a penny, you would have realized a profit of 900 percent," Scarpa said. WEAK CURRENCY BRINGS IN SPECULATORS In the last four years, the dinar has barely moved. Since 2008, it has appreciated by just 5 percent against the dollar, and at a tenth of a penny, the Iraqi dinar is the weakest currency among oil-producing Arab nations. The Kuwaiti dinar is worth about $3.50, while Saudi Arabia's riyal is equivalent to roughly 26 U.S. cents. The old dinar was worth $3.20 before the United Nations embargo that followed Iraq's invasion of Kuwait in 1990. By August 2002, the dinar had plummeted to a fraction of a penny. Speculators are betting that given Iraq's potential as an oil-driven economy, the dinar could rise to a value of $1 to $3. "I looked at the risks and I decided that this is not going to bankrupt me," said 35-year-old Ryan Williams, a former sheriff in Bakersfield, California. "You invest a couple of hundreds or a couple of thousands of dollars and even if it just appreciated by 10 to 15 percent a year, that's still a lot better than investing in certificates of deposits here." The Iraqi central bank sells dollars daily at a fixed price of 1,166 dinars through two state-run financial institutions and some private lenders Those institutions set the market rate through sales to customers. The current market rate is 1,215 dinars to one U.S. dollar. Hassnain Ali Agha, founder of Las Vegas-based currency dealer Dinar Trade, is the biggest U.S. market-maker in Iraq's currency. He also sells other exotic currencies such as Afghanistan's afghani and the Libyan pound. The United States is a huge market for Agha's firm, which has nearly 900,000 customers, 90 percent of which have purchased dinars. His customers are U.S. mom-and-pop investors - teachers, police officers, and construction workers. He also sold dinars to many U.S. soldiers coming back from Iraq. Agha, who formerly traded at the Chicago Mercantile Exchange and New York Futures Exchange, himself holds more than $2 million in dinars, he said. In 2011, Agha said, his firm sold about $577 million in dinars to U.S. customers, most of whom hold dinars for investment purposes. "People in the U.S. really feel that Iraq is the next frontier market to make money on," said Agha. "There will come a time when the Iraqi government will have to adjust the dinar exchange rate given the country's oil exports. That will start fueling the fire." Agha sells dinars in 1 million lots for $1,120. For the U.S. investor, however, it has to be a long-term holding. Dinar Trade will buy Iraqi notes at $850 per million, so the dinar would have to appreciate by about 30 percent before an investor could sell and break even. IRAQIS WANT DOLLARS In Iraq, prices are quoted both in dinars and dollars, but many prefer the greenback, locals interviewed by Reuters said. Saja Majeed, a 30-year-old civil servant in Baghdad and a mother of two, said she carries dollars in her wallet because it is safer and she sees little opportunity for the dinar to rise. "There is no industry in Iraq except oil. The dinar is linked to oil, but oil will run out one day," Majeed said. Revaluation will only happen once the Iraqi government stabilizes. Iraq's central bank hopes to make one dinar equal to $1 at some point through redenomination and central bank-induced appreciation. Iraq's deputy central bank governor Mudher Kasim told Reuters that process could take three years. America investors are remaining patient. "The big question is: where do you put your money in the U.S.? You can't get any interest in your money. Banks give you almost nothing on deposits," said Donna Simko, a real estate agent in her mid-sixties in Riverside, California. "The gold rush into Iraq is just getting started." (Additional reporting by Aseel Kami in Baghdad; Editing by David Gaffen and Steve Orlofsky) ===================

One after another, the heads of independent institutions and some of the largest banks in Iraq have been charged with corruption. The first was the director of the Trade Bank of Iraq in May 2011, followed by the commissioner of the Election Commission in April 2012, and then the head of the Central Bank of Iraq in October. The chief of the Integrity Commission claimed he was going to be accused of corruption as well before he resigned in September 2011. Corruption is a huge problem in Iraq, and it is continuously ranked as one of the worst in the world. Therefore it’s believable that there would be graft and theft at these organizations. However, the fact that Prime Minister Nouri al-Maliki and his State of Law list were directly involved in each case makes many believe that the premier is attempting to gain control of each one of these institutions. They also follow a Supreme Court ruling that the Integrity Commission, Election Commission, and Central Bank were all under the executive rather than legislative branch. Maliki has now gained leverage over most of them by appointing their temporary leaders. This all points to the prime minister manipulating corruption charges to centralize power in his hands.

The Trade Bank of Iraq was the first target on Maliki’s list. According to the Bank’s Director Hussein al-Azri, on June 2, 2011, Prime Minister Maliki paid him a visit. He asked that the bank to finance a $6 billion deal with a South Korean company to build power plants. Azri asked for a sovereign guarantee on the loan where the government would be responsible for the balance should the company default. Maliki said that one wasn’t needed. He then demanded that the department heads at the bank come to the meeting. A Maliki adviser then arranged a press conference where he said that the bank was under investigation for corruption, followed by security forces surrounding the building. Azri ended up fleeing, and eventually turned up in Lebanon where his family resides. In the aftermath, the integrity committee in parliament that looks into illegal government activities and the Finance Ministry issued a report saying that there were irregularities at the bank. One article said that Azri had given out $400 million in defaulted loans. Maliki stated that $500 million was missing from the bank. It later turned out that the investigation was never completed, and all the accusations against Azri came either from the prime minister or members of his State of Law list. Not only that, but the charges against Azri were made back in 2007, raising questions why it took four years for anyone to act upon them. The bank director ended up being sentenced to 15 years in prison in absentia in October 2012. In his place, Maliki named Hamida al-Jaff as the new head of the bank. The raid on the bank was immediately seen as political. A British adviser to the bank Sir Claude Hankes said that Maliki was behind the move. He told reporters that the government had attempted to manipulate the bank before, but had been rebuffed. Critics believed that the prime minister wanted control of the bank’s $14.9 billion in assets to fund development projects. In 2003, the Americans created the bank, which handles most major trade and financial deals. J.P. Morgan helped set it up, giving it ties with international financial markets. That was why it was the only bank in Iraq that could get credit from foreign institutions. Iraq does not provide sovereign guarantees, which makes it very difficult for Baghdad to finance large infrastructure projects outside of the energy field, which benefits from interest from foreign oil companies. Instead, the government has to rely upon foreign aid, private contractors, and cash payments to fund projects. With control of the Trade Bank, Maliki could use its billions to cover projects.

After the head of the Integrity Commission Judge Rahim al-Ogaili resigned it was revealed that he, and members of his staff were facing corruption charges as well. Judge Ogaili resigned from the main anti-corruption agency in September 2011 claiming that the government was preventing him from doing his work. Later, he told the Special Inspector General for Iraq Reconstruction that he was going to be charged with illegal activities before he left. His violations included providing statistics on the Commission’s work to the United States, a requirement for it to receive aid from Washington, and exaggerating the levels of corruption in the country in talks with the press. Judge Ogaili quit before he could be brought to court. Other members of the Commission faced similar accusations, forcing some to resign as a result. Prime Minister Maliki then named Izzat Tawfiq the acting commissioner. Since he is temporary, Tawfiq can be replaced anytime the premier wants. Maliki has opposed the Integrity Commission, and has continuously tried to block its investigations as a result. He has also demanded that all its major inquiries go through him. Now he might have that ability with Ogaili out of the way, and his man Tawfiq in office.

Maliki was less successful taking on the Election Commission. On April 12, 2012, the head commissioner Faraj al-Haydari was arrested, along with some of his staff. He was charged and found guilty of paying $130 to members of the State Property Commission to get public land. In October, an appeals court overturned his conviction. Haydari said that the charges stemmed back from 2008, and that State of Law parliamentarian Hannan al-Fatlawi was behind his detention. The commission head claimed that a court dismissed the case, and then Fatlawi went to another judge who eventually issued a warrant. Fatlawi was also the one that announced Haydari’s arrest, not the judiciary. Again, this case was seen as an attempt by Maliki to gain sway over an independent body. A member of the Board of Supreme Audit, which goes through the government’s books, said that acts of corruption at the Election Commission had been known for years, but no one acted upon them. The Board official told the International Crisis Group that he believed Maliki went after the commission for not going along with him during the 2010 elections. In that vote, Maliki’s State of Law came in second place, when the premier believed he would win. He then demanded a recount, but it did not change the results. The prime minister then allegedly accused the commission of helping the Iraqi National Movement win the balloting. Not only that, but lawmaker Fatlawi had gone after the commission before. Starting in May 2011, Fatlawi led an unsuccessful no confidence vote against Haydari for corruption, which was defeated in parliament in July. Then in September 2012, State of Law was blocked from expanding the number of commissioners from 9 to 15, which could have been used to put more of its followers on the staff. Iraq is due for two more rounds of elections, provincials in 2013 and parliamentary in 2014. If Maliki had been able to replace Haydari with his own election head or pack the commission with State of Law members that would give him great sway over the upcoming balloting. Those were leading causes for other parties to vote against Fatlawi’s no confidence vote in the summer of 2011, condemn Haydari’s arrest in the spring of 2012, and why Maliki was unsuccessful in expanding the number of commissioners this fall. These were all seen as crass moves by Maliki to take over the commission.

Today, the Central Bank of Iraq is caught up in the latest controversy involving the prime minister. At the end of October, arrest warrants were issued for the director of the Central Bank of Iraq Sinan al-Shabibi and members of his staff. A committee found evidence against them that had to deal with the sale of foreign currency. The premier then named the head of the Board of Supreme Audit Abdul Basit Turki the acting bank chief. The investigation into Shabibi started in August 2012 when a State of Law parliamentarian accused bank officials of laundering money. That led the Speaker of Parliament Osama Nujafi to call for a special committee to be formed. What that group found is under dispute. A State of Law member claimed that there was corruption involving dollar auctions the bank holds every week. Another lawmaker said he quit the committee, because others were going to form their own special group and release an anti-Shabibi report. Shabibi claimed that the government had been trying to get rid of him since 2009. He told the press that Baghdad wanted to use the Central Bank’s $63 billion reserves to fund development projects. The bank chief went on to say that was against the bank’s rules, and that he received threats and was intimidated as a result. Maliki and Shabibi have also argued over a wide range of issues such as revaluing the dinar and interest rates. In March, the prime minister ordered that all the bank’s policy decisions be sent to the cabinet for approval. The next month there were rumors that Maliki wanted Shabibi out to be replaced by one of the premier’s economic advisers. This was just like the Trade Bank of Iraq case. All the accusations against the Central Bank came from legislators belonging to Maliki’s list. With the long time director out of the way, Maliki could name his replacement that would then be beholden to him. Together, Baghdad would have over $70 billion to help finance projects. Whether this works out as well for Maliki as the Trade Bank is yet to be seen as Shabibi has said he will fight his charges, and no one has actually been arrested yet.

The prime minister’s intention to gain control of Iraq’s independent institutions was revealed in January 2011. That was when the Federal Supreme Court made a very controversial ruling that the Election and Integrity Commissions as well as the Central Bank of Iraq were all under the authority of the executive. This was despite explicit language in the constitution, which said that only parliament had that power. In February 2012, the Higher Judicial Council affirmed the court’s decision. Both happen to be under Chief Justice Medhat Mahmoud who is considered to be an ally of Maliki. Neither the commissions nor the bank were willing to go along with the courts. Now the premier has been able to name the heads of the Integrity Commission and Central Bank, while failing to do the same with the Election Commission. That was done by using corruption charges, which never go anywhere against important officials, unless someone more powerful is able to manipulate them. This appears to be the case here, as Maliki and his State of Law were behind all of the charges.

Many believe that Prime Minister Maliki is becoming an autocrat. Some of those accusations don’t appear to hold water. These four cases however, are more clear-cut. Maliki personally led the raid against the Trade Bank of Iraq, and legislators from State of Law made all the accusations against the Integrity and Election Commissions, and now the Central Bank of Iraq. Corruption is endemic in Iraq, but some of the charges have appeared minuscule at best like those against Election Commissioner Haydari and Judge Ogaili or have never become clear such as those against Central Bank head Shabibi. Not only that, but nothing is ever done against high officials like these over corruption, unless someone powerful wants action to be taken. That person is the premier who now at the least has gotten rid of officials who refused to follow his dictates. At the worst, he has gained de facto control over several independent institutions. This has all been possible by manipulating graft and theft charges to fulfill his political goals. This is a direct threat to Iraq’s developing political system. Without checks and balances, Iraq’s leaders like Maliki will be able to do what they like. The fact that he has attacked the commissions in charge of voting and fighting corruption are especially troubling, because he could now influence future elections and ensure that nothing is done about the rampant theft and graft within the government. This sets a dangerous precedent that the prime minister will use the courts and corruption to get rid of those that stand in his way. The Iraqi parliament has only been partially effective in blocking these moves, and could do a lot more. The problem is that the party bosses are unwilling to shake the boat, because they all benefit from the status quo. That means Maliki may be able to continue with these actions, concentrating more and more authority in his hands.

================= 150 kidnapped from Iraqi finance ministry, minister saysFrom Mohammed Tawfeeq, For CNN December 20, 2012 -- Updated 2252 GMT (0652 HKT) http://edition.cnn.com/2012/12/20/world/meast/iraq-finance-minister-kidnappings/index.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fcnn_latest+%28RSS%3A+Most+Recent%29 (CNN) -- Iraq's Finance Minister Rafei al-Essawi said Thursday that "a militia force" raided his house, headquarters and ministry in Baghdad and kidnapped 150 people, and he holds the nation's prime minister, Nuri al-Maliki, responsible for their safety. Members of the al-Essawi's staff and guards were among those kidnapped from the ministry Thursday, the finance minister said. He also said that his computers and documents were searched at his house and headquarters. He said the head of security was arrested Wednesday at a Baghdad checkpoint for unknown reasons and that now the compound has no security. "My message to the prime minister, you are a man who does not respect partnership at all, a man who does not respect the law and the constitution, and I personally hold you fully responsible for the safety of the kidnapped people" al-Essawi said. Al-Essawi, who has a large base of Sunni support, said he has tried to reach al-Maliki, a Shiite, with no success. "With a crisis like this of a minister of a key ministry, it's logical for (al-Maliki) to call me and to ask me about what happened," al-Essawi said. "Do you want me to believe that al-Maliki does not know about this action?" Neither Al-Maliki nor his spokesman could be reached for comment Thursday. The finance minister called for the safe release of his staff and guards and for a no-confidence vote against al-Maliki in parliament. "I demand the release of all detainees and I demand an apology of this illegal shameful act." al-Essawi said. "I demand from the Iraqi Parliament to activate a no-confidence vote against a government that does not respect its institutions and its sovereignty" The kidnappings come as Iraqi President Jalal Talabani heads to Germany under the care of a specialized medical team for treatment, Kurdish lawmaker Mahmoud Othman said. Talabani's office said the president is suffering from hardened arteries, but Othman said he had suffered a stroke. The kidnappings also follow the troubles of Iraq's fugitive Vice President Tariq al-Hashimi, who was sentenced to death in September, accused in the deaths of a lawyer and an army general. Al-Hashimi, who is also Sunni and now lives in Istanbul, denies the charges and maintains the accusations were politically motivated. ===================== Iraq urged to reform financial system Sat, Sep 24 19:15 PM EDT By Rachelle Younglai WASHINGTON (Reuters) - Iraq's banking system is hurting the country's growth prospects and must be revamped in order to entice foreign investment and diversify the oil-producing economy, international lending bodies said on Saturday. Seven state-owned banks dominate the banking system and hold 89 percent of the country's bank deposits, according to a report authored by the World Bank. Many of the banks provide limited services, most of the commercial banks do not operate as banks and some sell cars, experts said. "Iraq has to look like a diversified economy because it has to provide jobs for millions of people," World Bank country director Hedi Larbi said on the sidelines of the International Monetary Fund and World Bank meetings in Washington. "This is a country where the potential is huge. We need to help Iraq as the next tiger of the region," he said. The World Bank said the Iraqi government had to clean up banks' balance sheets, boost supervision of the financial system and level the playing field for competition from the private sector. "To better balance the economy, a deepening of the financial sector is needed to support growth of the non-oil sector," the poverty fighting institute said in its report. Officials said Iraq's muddled financial sector was but one of the barriers to economic growth and said security and macro-economic stability was still needed. "It has improved an enormous amount, but it is still a risky environment," said Ron Van Rooden, the IMF's mission chief for Iraq. WEAKER OIL PRICES The IMF expects Iraq's gross domestic product to expand 9.6 percent this year and 12.6 the following year. That is in sharp contrast to many other Middle Eastern and North African countries, which will see declines in growth in 2012 due to weakening oil prices and a global slowdown. Iraq's finance minister said his country would be able to weather the downturn in oil prices with higher output. "If we increase the production versus the changes in the prices this can make up the budget," Rafi El Essawi told reporters. "With the hope that we may add to the infrastructure of the export of oil at the end of this year, we will add a little bit to the Iraq economy." The country is currently producing about 2.7 million barrels per day (bpd) and is trying to boost output capacity to 12 million bpd by 2017. (Editing by Chizu Nomiyama) ============