Parliament urges government to reallocate development money to those in need

The Iraqi parliament on 12 April urged the government to reallocate US$5 billion earmarked for investment in infrastructure and services to social welfare programmes, a food rationing system and to meet the needs of internally displaced persons (IDPs).

[Read this report in Arabic]

"We believe that $5 billion will serve the citizens well if the funds are used in an appropriate way and a mechanism is established for the fair distribution of the funds among the citizens by boosting food rations, social welfare programmes and by helping displaced families," Sheikh Sabah al-Saidi, head of the Iraqi parliament’s anti-corruption committee, said.

"But if this amount is allocated for development and reconstruction projects then it will lead to increased corruption; the money will be lost and the citizens will gain nothing. This money belongs to the Iraqi people and it must go to the Iraqi people," al-Saidi told a press conference in Baghdad’s fortified Green Zone.

Al-Saidi proposed that the $5 billion be divided as follows: $2 billion to improve the country's food rationing system; $1.5 billion for the country's social welfare system; and $1.5 billion to meet the increasing needs of 2.8 million IDPs.

This money belongs to the Iraqi people and it must go to the Iraqi people.

Iraq’s welfare system was created after the US-led invasion of the country in 2003 to cope with increasing social problems. It provides widows, divorced women, orphans, the handicapped and the unemployed a monthly allowance of 50,000 Iraqi dinars (about US$50).

NGOs support call

The Iraqi Commission for Civil Society Enterprises (ICCSE), a coalition of over 1,000 Iraqi non-governmental organisations (NGOs), has supported this call.

“We add our voice to what Sheikh al-Saidi said in his statement as corruption and the spending of money without accountability is an important reason behind the violence, poverty and deteriorated social situation of the country,” Basil al-Azawi, head of the ICCSE, told IRIN.

“[Re-allocating the $5 billion] is one way to reduce unemployment and it will work to absorb anti-government elements by bringing the society together with the government,” al-Azawi added, noting that the money would not be enough to meet every need but would “serve as a backup to Iraq’s problems”.

Oil prices

Should the government agree to this proposal, it would still have $15 billion of a total budget of $48 billion allocated for economic and infrastructure development. The $5 billion in question – largely from increased oil revenues - is in addition to this total and will be included in a complementary budget to be issued by the end of June, the government said in a statement on 31 March.

Like all oil-producing nations, Iraq has enjoyed high profits as oil prices have climbed above $100 a barrel. According to oil ministry figures, the country's oil exports have increased in recent months. Some 2.4 million barrels per day were produced in February with exports averaging 1.93 million barrels per day.

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