Why Is the KRG's Stance on Salary Delays Indefensible?
The KRG has yet to disburse August salaries for public employees. Yesterday, Baghdad sent 572 billion dinars, along with an additional 183 billion dinars, totaling 755 billion dinars at the KRG's disposal. However, the KRG claims they still face a deficit of 243 billion dinars, rendering them unable to pay their employees because it nearly around 1 trillion dinars for salaries.
However, it is becoming increasingly difficult to defend the KRG's position, as they seem to have funds for election campaign projects worth hundreds of billions of dinars while claiming insufficient funds to pay their employees. Here is why:
The KRG's stance that it is Baghdad's responsibility to cover salaries is only valid if the KRG fulfills its obligations as stipulated in the budget law. According to the KRG Finance Ministry's own admission, their non-oil revenue is 320 billion dinars, yet they have never remitted 50% of that amount; the highest monthly non-oil revenue they've sent is 91 billion dinars. The KRG's argument is that while it is true that the non-oil revenue is 320 billion, much of it is going to the operating costs of the ministries.
Furthermore, the KRG clearly violates the law by independently selling its oil. The budget law mandates either selling 400,000 barrels daily via SOMO (State Organization for Marketing of Oil) or handing over this amount to Baghdad for local consumption. Baghdad has officially requested only half of this amount, 200,000 barrels, for local consumption, but the KRG still refuses. Instead, the KRG is selling oil illegally via oil tankers and pocketing the money, which is not returned to the public treasury. This practice is well-documented and undeniable.
The KRG's ability to sidestep these obligations is largely due to pressure from US and Western governments on the Iraqi government to continue sending funds regardless of compliance. While we believe KRG public employees deserve timely monthly salaries, and we have supported the idea that the KRG should be able to directly distribute employee salaries, it becomes difficult to defend their position when they so blatantly violate the terms of the budget.
It would have been somewhat understandable if the KRG's argument was that they are engaging in these practices to obscure the money trail from the Iraqi government, with the intention of using the funds for the benefit of the Kurdistan people. However, this is clearly not the case. In fact, these actions have largely led to the entire collapse of institutions in the KRG, further consolidating power in the hands of Masrour Barzani and enabling him to use the money as he wishes. This concentration of wealth and power not only undermines the democratic institutions of the region but also deprives the Kurdish people of resources that should be used for their collective benefit.
The situation is further exacerbated by the ruling families' use of oil revenues to consolidate power. For instance, Areen Masrour Barzani has financed the opening of a media outlet - AVA News - with an initial cost of $16 million and a monthly budget of several million dollars. This clearly demonstrates where the oil money, which is not returned to the public treasury, is going. A young individual with no personal work history, nor any from their father or grandfather, is able to finance such expensive projects solely due to their family's misappropriation of public funds.
The crux of the issue lies in asking ordinary employees to endure delayed salaries while such financial maneuvers benefit a select few, in which defending the current KRG allegations will only further enrich this select few and allow them to continue ruling unhinged.