LEGISLATIVE UPDATE -- DE-BA'ATH, PROVINCIAL

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003947

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/04/2017
TAGS: PGOV PREL IZ
SUBJECT: LEGISLATIVE UPDATE -- DE-BA'ATH, PROVINCIAL
POWERS, PENSIONS

Classified By: Charge d'Affaires Patricia A. Butenis for reasons 1.4(b)
and (d).


1. (C) Summary: As a consequence of our pressure upon the
leaderships of Iraq's political blocs, the Law of
Accountability and Justice received its second reading on
December 1; a third reading has not been scheduled and may be
delayed if the CoR is unable to muster a quorum due to the
upcoming Hajj holiday. A CoR version of the provincial
powers law that received both a first and second reading in
January and February is currently with the Shura Council.
However, Prime Minister Maliki was unhappy with the CoR's
version and produced a different version from a PM committee,
naturally with significant PM oversight. Another version --
a draft compromise -- is in the works according to CoR bloc
leader and Constitutional Committee Chair Hummam Hammoudi
(ISCI),to decentralize this federal control. Almost all
political parties remain internally divided over the question
of provincial powers. Finally, the Presidency Council signed
the first amendment to the Unified Pension Law; once in
effect, it creates a progressive pension system that allows
those eligible, including former Ba'athists, to receive
pensions. This latter achievement is a significant
legislative complement to reform of the de-Ba'athification
process. End summary.

DE-BA'ATHIFICATION LAW
--------------


2. (U) On Saturday, December 1, the Iraqi Council of
Representatives (CoR) had its second reading of the Law of
Accountability and Justice, commonly known as the
de-Ba'athification reform law. The reading was accompanied
by a civil discussion on possible amendments to the law,
along with concerns raised by the Sadrist bloc about the
constitutionality of the draft's requirement that the
current Higher National De-Ba'athification Commission (HNDBC)
be dissolved. The discussion of the draft continued into the
December 3 and 4 session and will extend into future
sessions. The next step for the law is a third reading, with
a discussion and a final vote.


3. (C) A date has not yet been set for the third reading,
which may prove difficult to schedule because of the upcoming
Hajj holiday. With many CoR members on holiday, it is not
clear whether enough parliamentarians can be mustered to
reach a quorum, which is a prerequisite for a third reading.
Although sessions are being held without a quorum by keeping
the session open overnight, CoR member Ala Talabani mentioned
that the Kurds are likely to depart for the north on December
7, hinting that there would be no sessions during the Hajj.


4. (U) The Sadrist bloc has been seeking amendments to the
text, and either the CoR Legal or De-Ba'athification
Committees may present proposed amendments during the third
reading. The CoR as a whole would decide if the amendments
should be included in the draft or discarded during the third
reading. While no amendments have been formally proposed
thus far, the CoR De-Ba'athification Committee has presented
a list of four concerns, including a need for the HNDBC to be
dissolved only after the new commission is formed, instead of
within six months of the entry into force of the law, as the
draft law currently provides.


5. (C) Comment: Two of the four concerns are either minor
word changes or trivial edits to the draft law. The
extension of the lifespan of the HNDBC until the new
commission is formed could be problematic; the lack of
oversight of the HNDBC could continue to be used as a
political weapon by delaying the formation of the new
commission. As well, the Sadrists are advocating that no
former member of the Ba'ath party (including those ranks
below Shu'aba that are unaffected by the draft law) should be
able to serve on the Presidency Council, Prime Ministerial
Council, in the CoR, or as a "judicial or federal authority."
Beyond demonstrating a strong aversion to former members of
the Ba'ath party, it is not clear what government positions
the last clause would affect. We will continue to press as
strongly as possible the CoR leadership and the political
bloc leaders to schedule the third reading in the near future
so as to avoid being stuck with a rump parliament unable to
muster a quorum. End
Comment.

PROVINCIAL POWERS LEGISLATION
--------------


6. (C) There are at least three versions of the Provincial
Powers law floating around: 1) the draft prepared by the CoR
Committee on Regions and Governorate Affairs, which received
a first and second reading in January and February, and is
currently in the Shura council where it remains stuck; 2) the

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"Leaders' draft" referred to in the August 26 Leaders'
Communique; 3) a third draft reserving strong powers for the
central government which was reportedly produced at the
behest of PM Maliki. (NB: Maliki's enthusiasm for a strong
central government is shared only by the Sadrist bloc.)
Humam Hammoudi, head of the CoR's Constitutional Review
Committee, told S/I Satterfield December 3 (septel) that a
compromise draft rolling back PM Maliki's insistence on
strong central government authorities would be achieved early
in the New Year. Of some seven contentious points, Hammoudi
said four had been resolved.

UNIFIED PENSION LAW
--------------


7. (U) The Presidency Council recently signed the First
Amendment to the Unified Pension Law, a substantial reform
for the governmental pension system. The law is notable
because it bases pensions on time in service (including
previous government employment),and does not take into
consideration an applicant's rank within the Ba'ath party.
It also closes an unintentional loophole that prevented any
individuals who received de-Ba'athification orders from ever
receiving a pension.


8. (U) Under the law, the National Board of Pensions, which
administers the pension rights of existing and new
pensioners, collects pension contributions (7% of the base
salary from the employee, and 12% from the employer) from all
public sector employees and their entities, placing them in
the State Pension Fund. The State Pension Fund is
independent of the national budget. Pensioners who took
retirement prior to January 17, 2006 will continue to have
their pensions paid from the national budget. The provisions
of the Unified Pension Law would not go into effect until the
law is published in the official gazette.


9. (U) The current drafts of the Law of Accountability and
Justice (the 'de-Ba'athification reform law') and the
proposed amendments to those drafts do not contain any
clauses that would further restrict the pensions of former
Ba'ath party members. (However, the Leaders' draft of the
Law of Accountability and Justice does limit former members
of Saddam's Fedeyeen from accruing time in service for that
employment). The passage of the pension reform law therefore
represents a legislative accomplishment untainted by
sectarian or partisan bias and a complement to the objectives
of the de-Ba'athification reform law.
BUTENIS