Identifier
Created
Classification
Origin
06KIRKUK128
2006-07-15 14:45:00
CONFIDENTIAL
REO Kirkuk
Cable title:  

(U) KRG VP KOSRAT RASUL: KRG CHALLENGES, REFORMS,

Tags:  PGOV PHUM PINR PINS PNAT PREF PREL KDEM IZ 
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PP RUEHBC RUEHDE RUEHIHL
DE RUEHKUK #0128/01 1961445
ZNY CCCCC ZZH
P R 151445Z JUL 06
FM REO KIRKUK
TO RUEHC/SECSTATE WASHDC PRIORITY 0687
RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0649
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEHKUK/REO KIRKUK 0715
C O N F I D E N T I A L SECTION 01 OF 03 KIRKUK 000128 

SIPDIS

SIPDIS

E.O. 12958: DECL: 7/15/2016
TAGS: PGOV PHUM PINR PINS PNAT PREF PREL KDEM IZ
SUBJECT: (U) KRG VP KOSRAT RASUL: KRG CHALLENGES, REFORMS,
CORRUPTION

KIRKUK 00000128 001.2 OF 003


CLASSIFIED BY: Tim Uselmann, Political Officer, IPAO, Department
of State.
REASON: 1.4 (a),(d)



C O N F I D E N T I A L SECTION 01 OF 03 KIRKUK 000128

SIPDIS

SIPDIS

E.O. 12958: DECL: 7/15/2016
TAGS: PGOV PHUM PINR PINS PNAT PREF PREL KDEM IZ
SUBJECT: (U) KRG VP KOSRAT RASUL: KRG CHALLENGES, REFORMS,
CORRUPTION

KIRKUK 00000128 001.2 OF 003


CLASSIFIED BY: Tim Uselmann, Political Officer, IPAO, Department
of State.
REASON: 1.4 (a),(d)




1. (C) Summary: KRG Vice President Kosrat Rasul told IPAO in a
July 1
meeting in Sulaymaniyah that the biggest challenge facing the
newly
unified KRG was public dissatisfaction over government services
and the
subsequent appeal of the Islamic movement. In his first address
to the
KNA as KRG Vice President, he highlighted rule of law, social
equality
and democracy as priorities. Finally, he stated corruption
became a
regional epidemic with the flood of CPA funds in 2003. End
Summary.

(C) Challenges Ahead for the new KRG
--------------


2. (C) KRG Vice President Kosrat Rasul said he saw both external
and
internal challenges for the unified KRG. Externally, conditions
in
Baghdad had a significant negative impact on the region.
Internally,
the biggest problem was public dissatisfaction and resulting
demonstrations over electricity, water, gas, and problems in
daily life.
Rasul felt recent protests in Rania, involving over 500 people
disgruntled with public services, were normal in a democratic
system;
however sometimes people blamed the KRG when the real guilt lay
on the
central government. For example, electricity was a central, not
a
regional, issue.


3. (C) Rasul felt that if the government could meet people's
basic
needs, they could fight the well-organized Islamic groups who
capitalized on the discontent. Islam was extremely strong in the
countryside where services were the worst. He estimated the
region was
15-20% religious.


4. (C) The KRG had not developed a plan to fight Islamic
extremism, nor
projects to implement for the people. He suggested the KRG
develop
smaller towns and provide public services and organizations such

as
sports clubs and youth activities. Also, investment in
factories and
farms where men and women would work together would help counter
perspectives taught by the mosques. In villages, people
listened to the
mullahs, because there were no teachers.


(C) Reform Platform for the KNA
--------------


6. (C) Rasul said that in his first address to the KNA he
outlined the
platform below, prioritizing rule of law, social equality and
democracy.


- Transparency in government budgeting and finance;
- Power distribution around the region;
- Rule of law;
- Social equality;
- De-politicize the peshmerga, taking control of them away from
the
parties;
- Activate the role of the KNA;
- Encourage the private sector and establish a free market;
- Facilitate foreign investment;
- Establish a committee to monitor the ministries and fight
corruption;

- Make leadership salaries commensurate with the private sector;
- Protect freedom of speech and prohibit detainment of
journalists
without due process;
- Improve the education system;

KIRKUK 00000128 002.2 OF 003


- Capitalize on the region's human resources;
- Encourage civil society;
- and make Kurdistan Region a model for Iraq.

(C) CORRUPTION - CPA's Child
--------------


7. (C) Rasul said the introduction of CPA funds in 2003 caused an
epidemic of corruption throughout the Kurdistan Region. Before
Liberation, all of Sulaymaniyah had only ten millionaires; now
there
were over 2,000 between Dohuk, Erbil, and Sulaymaniyah. The
international focus on Iraq for reconstruction and oil revenues,
and the
central government's lack of power to control the situation,
allowed
these businessmen to benefit from the transition. Rasul agreed
that the
senior leadership was part of the problem and made reforming
from the
top almost impossible.


8. (C) During his tenure as KRG Prime Minister from 1993 to 1996,
corruption was nonexistent. From 1996 to 2002, while Rasul
served as
Prime Minster of the KRG in Sulaymaniyah, corruption was
introduced
through the black market and smuggling, by-products of UN
programs such
as the Oil For Food program. Smuggling from neighboring Iran,
Syria and
Turkey into Kurdistan contributed to corruption.


9. (C) In his eight years as Prime Minister (in both Erbil and
Sulaymaniyah),there was no budget to run the government but the
people
were happy. Today, the budget was good but the people were not
satisfied. Rasul said the best solution to combat corruption
within the
government was to treat it as a contagious disease and
quarantine the
corrupt. He said he intended to use the law to fight corruption
from
within.

(C) Recommended Reforms for the KRG
--------------


10. (C) Rasul said among his recommendations to the KRG was a
forced-retirement from the government at age 50. He said there
were
historical reasons why the Kurdish leadership, including Iraq
President
Jalal Talabani and KRG President Barzani, would not step down
and/or
face elections. Rasul said at 54 he was too old to resolve the
issues
facing the party, but would continue to work after retirement to
investigate the affairs of the government. He also recommended
that the
peshmerga, police, and security forces change their role in the
government to prevent their intervention in election matters.


11. (C) When he was Prime Minister in Erbil there was a law
allowing the
investigation of questionable private wealth. Today, a
parliamentary
committee should be created to do the same. After the popular
uprising
people had great respect for the government leadership.
Presidents
Talibani and Barzani returned to the Kurdistan Region without a
single
vehicle between them. Nowadays, people accepted that the
leadership
would have a car, a house, etc., but they did not accept the
extreme
wealth most had acquired. People did not accept that so much
could have
been gained legitimately in such a short period of time. Rasul
added
rhetorically that Barzani, for example, was unemployed beyond
being a
leader - so how did he acquire so many homes?

COMMENT:
--------------


12. (C) KRG Vice President Kosrat Rasul appears to remain loyal
to his
own agenda, being neither a peacemaker nor arbiter for reform.

KIRKUK 00000128 003.2 OF 003


He is
definitely an advocate for the people, enjoying 96% popularity
among the
Kurds, and therefore is an important partner for pushing reform
and
fighting corruption. End comment.
JBIGUS