PUK Files Legal Complaint Against KRG Over My Account Project

31-10-2024 12:51

Peregraf

The Patriotic Union of Kurdistan (PUK) files a legal complaint against Kurdistan Regional Government (KRG) in Baghdad, alleging obstruction of Iraq’s "Tawteen" salary domicilization program and "Enforcing the My Account" initiative on KRG employees.

The PUK has lodged a formal complaint with the Karkh Court of Investigation in Baghdad, alleging that the KRG is hindering the implementation of Tawteen while enforcing the My Account digital salary initiative (Hazhmary Mn) on employees within the KRG. As reported by PUK media, the complaint was submitted on Thursday, October 31, 2024, by a legal team alongside PUK representatives in the Iraqi parliament at the Karkh Court of Investigation in Baghdad.

Dr. Biryar Rashid, a representative of the PUK faction in the Iraqi parliament, stated on the official PUK website, PUKMEDIA: "Our faction has initiated legal proceedings against Hazhmary Mn in the Karkh court located in Baghdad.

"The lawsuit addresses the obstruction of the Iraqi Tawteen program, which is intended to facilitate the opening of bank accounts for public sector employees and pensioners. It alleges that individuals are being compelled to establish accounts within the Hazhmary Mn Project at private and non-governmental banks, a practice that contradicts the ruling of the Federal Court," he remarked.
The legal action was initiated following remarks made by PUK leader Bafel Talabani to the press on the sidelines of the MERI Forum in Erbil, where he stated, "My account is nowhere to be found."

Recently, the KRG’s Ministry of Finance and Economy issued a statement regarding the implementation of My Account Project, indicating that the decision was reached during a meeting of the KRG Council of Ministers, which included Qubad Talabani, the Deputy Speaker of the Council of Ministers, and that the decision was unanimous.

In response to the Ministry of Finance's statement, Bafel Talabani asserted, "Decisions within the government are made through voting. The My Account initiative has not undergone a voting process; it has merely been presented and discussed, without a formal vote."
He further emphasized, "There is a ruling from the Federal Court regarding the establishment of bank accounts for salaried employees in Kurdistan, and this will be enforced. Individuals should have the freedom to choose their own banks. Why should there be any compulsion?".

On October 28, Awat Sheikh Janab, the Finance Minister of the KRG, issued a warning to commercial banks in the provinces of Sulaymaniyah and Halabja. He stated that any directors or employees who hinder the execution of the Hazhmary Mn Project will face accountability, and legal measures will be pursued against them.

Awat Sheikh Janab emphasized that the Hazhmary Mn Project is a national initiative across the Kurdistan Region endorsed by the Presidency of the Council of Ministers and is expected to be implemented across all provinces.

PUK, which had previously supported the My Account Project in its controlled areas and even mandated the completion of project forms by security and Peshmerga forces, has now taken a stance against the initiative with a recent decision. Reports from PUK-affiliated media indicate that the operations of the My Account project teams have been halted in Sulaymaniyah.

The Tawteen program and the Hazhmary Mn initiative both pertain to the disbursement of salaries for public sector employees in the Kurdistan Region via banking institutions, yet they serve distinct purposes:

Tawteen: This initiative represents Iraq's salary domicilization effort, designed to facilitate the direct deposit of salaries into the bank accounts of public sector employees by the Iraqi government. Its primary objectives are to foster financial transparency and mitigate corruption.

Hazhmary Mn: Referred to as the "My Account" initiative, this local program established by the KRG aims to digitize salary payments for more than one million employees and pensioners. Its goal is to strengthen the KRG's oversight of public sector employees and pensioners within the Kurdistan Region.

The "My Account" project, an electronic salary distribution initiative launched by KRG Prime Minister Masrour Barzani, is designed to simplify salary payments for more than 600,000 government employees. However, the project has encountered resistance in PUK-controlled areas, with some employees requesting that their salaries be transferred through Iraq’s federal banking system (Tawteen) instead. The PUK has opposed the "My Account" initiative as part of its political stance, with PUK leader Bafel Talabani urging employees not to participate.

The Federal Supreme Court previously ruled that KRG salaries must be deposited in Iraq’s federal banks—Rashid, Rafidain, or the Trade Bank of Iraq (TBI)—outside the Kurdistan Region. Despite a three-month deadline from the Court for implementing this decision, the KRG has requested Baghdad’s formal recognition of the "My Account" project for salary banking, leading to delays in compliance.

Initially, the Iraqi Ministry of Finance declined to endorse the "My Account" project. However, following advocacy by Masrour Barzani and KRG delegations, the project has continued with the goal of transitioning all employees to electronic payments by the year’s end. Recently, there have been reports of delays in Sulaymaniyah and Halabja, raising concerns about administrative obstacles and the clarity of the salary distribution process.