Iraqi president issues lawsuit against PM and finance minister

Iraq’s President Abdul Latif Rashid has taken legal action against Prime Minister Mohammed Shia Al Sudani and Finance Minister Taif Sami Mohammed over delays in paying civil servant salaries in Iraq’s semi-autonomous Kurdish region, The National reported on February 10th.

The President’s lawsuit was filed with the Federal Supreme Court on January 20th and made public on February 9th, following the announcement of the lawsuit by Hawre Tawfiq, head of the Iraqi presidency’s Office of Relations and International Organisations.

“We want the people of Kurdistan to know that President Rashid has filed a lawsuit at the Iraqi Federal Supreme Court” against the Prime Minister and the Finance Minister, Mr Tawfiq said in a statement.

The lawsuit is a reflection of the growing tension between Baghdad and the Kurds, with both groups failing to agree on certain issues, including surrendering control of the oil industry to the federal authorities and restarting oil exports from the Kurdish region.

The lawsuit requests that the court issue a provisional order to guarantee that the region’s employees are “paid continuously and on time.”

The court’s first hearing on the lawsuit is set for February 12th, according to a document issued by the Presidency.

Oil exports from the Kurdish region through Turkey have been suspended since March 2023, following an arbitration court ruled in favour of Baghdad, claiming that Turkey violated a 1973 agreement by allowing the Kurds to pump without the consent of Baghdad.

Baghdad and Kurdistan have not managed to come to an agreement on pending issues so that imports can continue. The issues include Kurdish contracts with oil companies and payment systems. This has led to severe economic consequences, including layoffs and salary cuts, as the regional government struggles to pay full wages and social service dues.

The Kurdish region heavily relies on the oil sector for its local economy, accounting for 80% of income.

Iraq’s parliament approved a change to the budget to help cover production costs for international oil companies in the Kurdish region, aiming to restart oil exports from the north.

The change to the budget sets the rate at $16 a barrel, which is an increase from an earlier proposal of $7.9 a barrel, for transport and production costs, which was rejected by the Kurdistan Regional Government because the rate was too low.

This approval by parliament is an important step in resolving the almost two-year dispute over Kurdish oil exports and improving relations between Baghdad and Erbil.

The National