THE PROVINCIAL POWERS LAW: A HARD COR BATTLE WON,

C O N F I D E N T I A L SECTION 01 OF 03 BAGHDAD 000477 SIPDIS SIPDIS E.O. 12958: DECL: 02/16/2018 TAGS: PREL PGOV IZ SUBJECT: THE PROVINCIAL POWERS LAW: A HARD COR BATTLE WON, AT LEAST FOR NOW REF: A. BAGHDAD O-I 2/17/08 ¶B. COR REPORT FEBRUARY 4 ¶C. COR REPORT FEBRUARY 7 ¶D. COR REPORT FEBRUARY 13 ¶E. BAGHDAD 450 Classified By: Political Counselor Matt Tueller for reasons 1.4 (b) and (d) ¶1. (C) Summary. CoR members passed the provincial powers law February 13 as part of an omnibus package with the 2008 budget and amnesty law. Among the three pieces of legislation, the provincial powers law was the most controversial, as it delineates the authorities between Iraq's central and provincial governments, as well as the relationship with district and sub-district level governments. According to Iraqi Presidency Council staff, the three laws arrived at the Presidency Council on February 18, 2008, though VP Mahdi told the Ambassador the package was received on February 17, 2008. VP Mahdi is not pleased with the provisions in the legislation relating to the dismissal of governors. The three laws came as a package. However, it is unclear whether the entire package will fail if one law is vetoed. The other controversial provision in the legislation sets a deadline for provincial elections, set to occur no later than October 1, 2008. While the provincial powers law is not perfect by any means, it sets a framework for the federal, provincial, and local governments in Iraq to work together in the upcoming year towards a decentralized system of governance. End summary. NEXT STEPS - PRESIDENCY COUNCIL APPROVAL, THE GAZETTE -------------- -------------- ¶2. (C) The three laws from the CoR arrived at the Presidency Council on February 18 as "three laws in one basket," according to Presidency Council staff. However, VP Abdulmahdi told the Ambassador on February 19 the package was received on February 17 (septel). This means the law should go into effect either February 27 or 28 (10 days after arrival),as long as the legislation is not vetoed. Abdulmahdi expressed unhappiness with the law in a meeting with the Ambassador February 17, objecting on constitutional grounds to the provision that gives the central government (CoR and PM) a say in dismissing a governor (ref A). He echoed these comments again on February 19, but told the Ambassador he would consult with VP Hashimi and President Talabani on the issue. Because the three laws passed as one omnibus package, there is a possibility that a veto of one of the laws could doom the entire package. Given the lack of rules or precedent on an omnibus package, however, the effect of a veto is unclear. ¶3. (C) Assuming the law emerges from the Presidency Council unscathed, the next step will be publishing the law in the Official Gazette. According to the Chair of the Governorates and Regions Committee Hashem al-Taee, the law will not require implementing regulations. However, one key provision in the law (now article 55) is that while the law enters force on the date of its publication in the Official Gazette, its provisions will be applicable to the provinces only after elections for the new councils are held. MOST CONTROVERSIAL ARTICLES -------------- ¶4. (C) The most controversial provisions of the provincial powers law included the dismissal of governors and the 90-day timeline for passing a provincial elections law and stipulation for a October 1, 2008 deadline for holding provincial elections (ref B and C). The law lays out two ways a governor can be dismissed from office. The PC can dismiss a governor based on certain justifications by an absolute majority of its members. In addition, the CoR can dismiss a governor by an absolute majority, based on the recommendation of the Prime Minister (PM). It is noteworthy that language was added to the version the CoR voted on which allows the governor to object and appeal his dismissal before the Federal Supreme Court. The situation of Governor Waeli in Basrah, whom PM Maliki reportedly wanted to remove, served as a key example as the debate on this provision played out. Fadhila and the Sadrists were the most vocal during the vote on any involvement of the central government in the dismissal of a governor, but other Shia parties and Kurdish blocs raised objections as well. ¶5. (C) The other controversial article that almost crumbled hopes of the law passing was the question of whether to include a deadline for provincial elections in the provincial powers law. This was Article 55 in the version voted on by the CoR on February 13 (ref D),but was flipped to Article 54 in the final version sent to the Presidency Council. The BAGHDAD 00000477 002 OF 003 article reads that the CoR must pass a provincial elections law within 90 days of passing the provincial powers law, as well as hold provincial elections no later than October 1, ¶2008. (Note: According to one reading, the law may also require holding district and municipal council elections by the same date. End Note.) Speaker Mashadani declared the article passed after a narrow vote and violent protests erupted during the February 13 vote on this provision. ISCI and the Kurds were the most opposed to this measure. ¶6. (C) While not as controversial, a provision within Article 5 on "conditions of membership" for PC members was voted on twice (ref B and C). The provision requires that PC members must be a native of the province or have resided there for not less than 10 years, and that they must not have moved to the province for the purpose of "demographic change." The other option that did not include this language lost both times. This provision was pushed by the Kurds and was aimed at preventing candidacies of persons moved to a province for the purpose of demographic manipulation (e.g. Saddam "Arabization" efforts). OTHER KEY PROVISIONS OF THE LAW -------------- ¶7. (C) Other key provisions of the law include the following: - Size of Provincial Councils: The size of provincial councils will now vary depending on population, rather than the uniform number of 41 members. The new law sets forth a formula for determining the number of PC members, based on the population of the province. Each province is guaranteed a minimum of 25 seats, but then adds one additional seat for every 200,000 residents for any province with a population exceeding 500,000 people. - Legislation: PCs have the right to pass local legislation related to the administration of the province, as long as it does not contradict the Constitution and federal laws. If a PC issues a law that contradicts district or sub-district laws, the PC's laws survive as long as they were applied to the entire province. PCs also have the right to issue local regulations and by-laws. Neither the Governor nor the PCs will have jurisdiction over the courts, military units, universities, or colleges in the province. - Appointment of Senior Officials (e.g. Directors General): The governor can nominate five candidates from which the PC members can pick three candidates. The relevant minister selects one from these three candidates. - Dismissal of Senior Officials: Based on a recommendation of the governor or request of one-fifth of its members, a PC can dismiss senior officials by an absolute majority. In addition, the Council of Ministers can also dismiss a senior official by recommendation of the relevant minister, based on certain justifications. - Financial Authorities: PCs have the right to approve the provincial budget, which is submitted by the Governor. The Ministry of Finance allocates funds from the federal budget to the province. Provincial financial resources consist of this provincial share of the federal budget, local revenues from services and investment projects, proceeds from local/fees fines, donations and grants, and proceeds from the sale and rent of local immovable assets. - Security Plans: The Governor will have direct authority over local security agencies, except for the armed forces (i.e. Iraqi Army). PCs only have the ability to approve local security plans in coordination with the Governor and federal ministries. The central GOI retains control of Federal Iraqi Security Forces (ISF) at all times, and any request for additional forces must be made by the Governor to the Minister of Interior. - Dissolution of a Provincial Council or Local Council: The dissolution of a PC or Local Council can be achieved through the absolute majority of members based on the request of one-third of the members for certain justifications. Also, the CoR, based on a request of the Governor or one-third of the PC, can dismiss a PC by an absolute majority. - Creation of a Higher Board for the Provinces: This board is headed by the PM and will include the governors and heads of PCs. The purpose is to coordinate common issues related to the administration of the provinces. - Local and sub-district councils: Local and sub-district councils have oversight of administration, budgets, election of its members, and other areas specifically related to their BAGHDAD 00000477 003 OF 003 own area of jurisdiction. KEY CHANGES IN DRAFTS ALONG THE WAY -------------- ¶8. (C) Provisions related to Baghdad were included -- and then cut -- from various drafts of the provincial powers law. Article 56 (now canceled) in the version the CoR voted on February 13 included two options for the appointment and dismissal of the Mayor of Baghdad. While the two opinions on this article were read during the vote, according to Deputy Chair Nada al-Sudani (Dawa),only a very small number of CoR members voted. Most members, she said, refused to vote on it at all. Subsequently, while it appeared the second opinion which gave the CoR and PM a role in the matter obtained the most votes, the article was ultimately canceled in the final version transmitted to the Presidency Council. Nada Sudani said the provincial powers law will apply to the Baghdad PC and how the governor is elected. However, she said, for the Amanat Baghdad (Mayor of Baghdad),there will be amendments in an old law relating to this issue and this process will be conducted "later." ¶9. (C) Other key modifications to the law occurred during the last three weeks of negotiations on the legislation. At one point, language was included that PCs, local district councils, and sub-district councils should take into consideration the representation of women. This disappeared in later drafts. Controversial language regarding a governor having emergency powers over ISF (i.e. Iraqi Army) during a crisis was taken out mid-January as a result of negotiations, so now the central government retains complete control. Improvements in definitions were also made as the drafts developed, reducing legal ambiguity. Until the February 4 draft of the law (on the initial day of voting),the CoR did not address the issue whether the law would come into force immediately or apply to councils after provincial elections. It also did not include a deadline for an elections law or provincial elections. The refinements made to the draft legislation along the way reflected intense negotiations between the party blocs and how the law would be implemented. WHAT'S NEXT? -------------- ¶10. (C) Assuming the provincial powers law will be signed by the Presidency Council, it will enter into force on the date of its publication in the Official Gazette. However, its provisions shall be applicable to provinces only after the elections of new councils are held, with some exceptions to provide pension rights for current councils. The CoR has set an ambitious agenda for passing a provincial elections law -- 90 days --especially given that the CoR is in recess until March 18 (ref D). Given this delay, the deadline for provincial elections (October 1, 2008) is also highly ambitious. The Embassy's Elections Working Group, in close coordination with UNAMI, is mustering the technical and substantive support that will be needed if this ambition is to be realized. CROCKER