Explainer: The Political Dispute Over Domiciling KRG Public Employee Salaries

The KRG's MyAccount salary domiciliation initiative has faced a series of setbacks in Sulaimani province, where services were suspended over ten days ago following opposition from PUK president Bafel Talabani. During his election campaign, Talabani famously criticized the system with the pointed remark, "It's neither my account nor yours—it's Masrour's account," pledging to prevent its implementation in Sulaimani province.

This suspension has triggered a series of escalating confrontations between Kurdistan's major political forces. Yesterday, KRG Prime Minister Masrour Barzani's office and the KDP-backed Prosecutor General responded by issuing directives authorizing penalties against any bank manager, law enforcement officer, or official who obstructs MyAccount operations. Today, the crisis deepened further as the "Sulaimani administration" announced plans to file a Federal Court complaint challenging mandatory MyAccount registration, though the specific institutions comprising this administration remain unclear.

The dispute has also intensified in the media sphere, with party-affiliated channels presenting conflicting narratives. The pro-KDP Rudaw TV reports that Iraqi government and state-owned banks are unaware of Sulaimani's attempts to integrate with Iraq's Tawtin system. Conversely, the pro-PUK Channel 8 claims preliminary agreements have been reached to open state-owned bank branches and implement Tawtin in the province. A PUK parliamentary delegation's recent visit to the state-owned Rafidain and Al-Rasheed banks appears to support these claims.

The legal framework surrounding this dispute remains contentious. A significant provision in the 2024 federal budget law allows individual provinces within regions to establish direct salary payment arrangements with the Iraqi Finance Ministry. This contradicts assertions by Iraqi Deputy Finance Minister Masoud Haider, a KDP member, who maintains that bypassing the KRG to directly link Sulaimani salaries with Iraqi banks is impermissible. Further complicating matters is February's Federal Banking Court ruling regarding the digitalization of KRG public sector payroll. The ruling's ambiguity has fueled ongoing debate over whether it mandates Iraq's Tawtin service specifically, or if the KRG's MyAccount system could serve as an acceptable alternative with Iraqi Central Bank approval.

Public opposition to MyAccount in Sulaimani reflects deeper concerns about governance and financial control. Critics argue that the system would strengthen the KRG's control over salary disbursement, potentially enabling automated deductions for utilities and government fees. Many public employees, particularly those who filed complaints leading to the Federal Court's February ruling, worry that maintaining salary management under KRG control could perpetuate chronic delays and non-payments. The initiative has become increasingly polarized, with support now largely confined to KDP circles while other political parties actively distance themselves.

The dispute appears to be part of broader political positioning ahead of the 2025 Iraqi elections, with the digitalization of public sector payroll emerging as a new battleground. While pro-PUK media attributes MyAccount's shutdown in Sulaimani to public employee resistance, this narrative conflicts with official accounts. The controversy has evolved beyond administrative reform into a proxy battle for political control between Kurdistan's dominant parties..