PUK's Demand Fulfilled: 'My Account' Project Transferred to KRG Ministry of Finance Amid Ongoing Tawteen Dispute

Peregraf

At the directive of Masrour Barzani, the Prime Minister of the Kurdistan Regional Government (KRG), the "My Account" initiative, also referred to as “Hazhmari Mn,” has been reassigned from the Office of the KRG Prime Minister to the KRG Ministry of Finance and Economy. This system, Hazhmari Mn, was developed by the KRG in contrast with Iraq's federally mandated Tawteen program.

The project serves as a salary distribution mechanism managed by the KRG, with the primary aim of modernizing payroll procedures in the Kurdistan region while ensuring that control remains with the Kurdistan Democratic Party (KDP) and KRG.

The relocation of the project was one of the key demands of the Patriotic Union of Kurdistan (PUK) during negotiations for the formation of the upcoming KRG cabinet, which the KDP has now agreed to.

Official Decree Issued

In an official decree signed by Omed Sabah, Head of the KRG Council of Ministers’ Office, and obtained by Peregraf, it was stated:

"The decision has been made to transfer the process of salary digitization for public sector employees (My Account) to the Ministry of Finance and Economy. The ministry will oversee the project in accordance with legal frameworks and the directives of the Federal Central Bank."

Sabah confirmed that the decision was based on the Prime Minister’s directive and emphasized its implementation across the Kurdistan Region. He assured that "employees’ bank accounts will be protected under the same laws and regulations."

Guaranteeing the safety of employees’ salaries from unauthorized deductions (such as water, electricity, or service fees without consent) was another key PUK demand that the KDP has accepted.

Agreement Reached After Negotiations

On Saturday, April 19, 2025, a reliable source informed Peregraf that the KDP had accepted the PUK’s demands regarding the My Account project, and both sides reached an agreement.

According to detailed meeting records, the PUK’s first demand was that, "The project must be transferred from the Prime Minister’s Office to the Ministry of Finance to fully become a government project."

Additionally, the PUK insisted that:

- "No unauthorized deductions should be made from employees’ salaries, such as debt repayments for utilities, without their consent."

- "Other banks should be allowed to participate in the project."

- "The PUK should receive a copy of all contracts between the government and participating banks."

These demands were discussed and agreed upon during a meeting in Sulaymaniyah on Thursday, April 17, 2025, attended by Aziz Ahmad, the KDP’s My Account project manager.

A Potential Obstacle Removed

The source told Peregraf, "This issue could have been a major obstacle in KDP-PUK negotiations for government formation if no agreement had been reached."  They further noted that both parties have agreed that any future strategic projects related to governance must be jointly discussed and approved. Even past projects deemed necessary for review may be brought back to the negotiation table in the KRG’s 10th Cabinet.

Background on "My Account Project"

The My Account project, initiated by PM Masrour Barzani, has been in development for several years. It is directly linked to the Prime Minister’s Office and apparently aims to modernize salary payments.

- 750,000 public employees have registered.

- 275,000 have received their salary cards and currently receive wages through the system.

However, a great number of public employees in PUK-administered areas have rejected the project, demanding salaries through federal Iraqi banks, as per a Federal Court ruling.

However, protesting teachers and public employees—particularly in Sulaymaniyah and PUK-influenced areas—have rejected the project, demanding salaries through the Iraq's Tawteen Salary Program as per the Federal Court ruling.

Contrast with Iraq’s Tawteen System

Iraq's Tawteen Salary Program is a federal initiative requiring all public sector salaries to be paid exclusively through federal Iraqi banks (Rafidain, Rashid, or Trade Bank of Iraq), designed to centralize payroll control under Baghdad's authority while bypassing the KRG's financial systems. This policy has significantly escalated tensions with the KRG, which perceives Tawteen as a direct challenge to its fiscal autonomy - a conflict intensified by a 2024 Federal Court ruling enforcing nationwide compliance. The program stands in direct contrast to the KRG's parallel "My Account" digitization project that processes salaries through regional banks, creating competing systems that reflect deeper political disputes over financial sovereignty between Erbil and Baghdad.

- My Account Salary Distribution System: Managed by the KRG, aims to modernize payrolls within the region while retaining local control.

- Tawteen: Imposed by Baghdad, centralizes salary payments under federal authority, often seen as a tool to weaken KRG financial autonomy.

The PUK initially aligned itself with protesting teachers and public employees who demanded salaries through Tawteen, citing the Iraqi Federal Court’s 2024 ruling that ordered direct payments from Baghdad. Furthermore, during the 2024 Kurdistan parliamentary election campaigns, the PUK leveraged this issue politically to garner votes, positioning itself as a defender of employees’ rights against the KDP-dominated KRG.

Yet, after the elections, the PUK dropped its hardline stance and instead negotiated compromises within the KRG framework, including the transfer of My Account to the Finance Ministry—a move apparently seen as balancing its electoral promises with coalition pragmatism.

The rejection of My Account Project was part of the PUK’s election campaign, with Bafel Talabani, the party’s leader, urging employees not to join the project.  After the elections, the PUK filed a lawsuit against the project in Baghdad’s Karkh Investigation Court, with Talabani declaring, "My Account is over."

However, with the start of forthcoming KRG cabinet formation talks, the PUK dropped its opposition and made the project a negotiation point, leading to the current agreement.