Auditors/ NZ/JF/ MD complicit?5 Nov 2018 12:02
Did the KRG mishandle oil contracts and revenue?
While the KRG sold itself as “an emerging market offering excellent opportunities,” oil industry corruption has also tarnished Iraqi Kurdistan’s reputation. On November 27, 2015, for example, Dana Gas, a United Arab Emirates-based energy company and one of the largest investors in Iraqi Kurdistan, won a London Court of International Arbitration ruling worth nearly $2 billion against the KRG. The case exposed bribery and extortion at the highest levels of the KRG. If Hussein was unaware of the corruption, he was either blind or incompetent. If he was complicit, then that bodes no better for his tenure at the finance ministry. The problem, of course, was not just corruption. The Dana impasse and arbitration caused a six-year delay in development, which meant lost profits on undeveloped fields and dissuaded further investment in Kurdistan.
While the KRG subsequently blamed defaults on the fight against the Islamic State and the pressures of caring for refugees, profligate spending by Kurdish political elites and the lack of austerity at top levels of the KRG belied such claims. KRG Oil Minister Ashti Hawrami acknowledged, “If the KRG carried on as before with its uncurbed spending and without real reforms, then even if we reached 1 million barrels of crude oil production per day and oil returned to $100 per barrel we would still not cover our financial requirements”.
The KRG contracted PricewaterhouseCoopers to audit the region but never released the results of its audits. Nor did the KRG release audits by Deloitte and Ernst & Young. Given Hussein’s central role in managing government at the time, shouldn’t Abdul-Mahdi demand their release and parliamentary examination? Given the Iraqi public’s sensitivity about corruption, shouldn’t Abdul-Mahdi seek to have his finance minister explain the difference between Barzani, KDP, and public party in the KRG? Perhaps parliament might ask why, if Barzani no longer serves as KRG president, he continues to occupy a mountaintop resort appropriated first by Saddam and then, after 1992, for the KRG presidency?
https://ekurd.net/fuad-hussein-sink-reform-2018-11-04