RRT ERBIL: PROVINCIAL POWERS COME TO THE KURDISTAN

UNCLAS SECTION 01 OF 03 BAGHDAD 001969

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV IZ
SUBJECT: RRT ERBIL: PROVINCIAL POWERS COME TO THE KURDISTAN
REGION

REF: 08 BAGHDAD 4078

This is an Erbil Regional Reconstruction Team (RRT) cable.


1. (SBU) SUMMARY: On April 20, 2009 the Iraqi-Kurdistan
Parliament (IKP) passed a Provincial Powers Law (PPL) which
defines the authority of the Provincial Councils (PCs) of the
Kurdistan Region (KR) but provides for less decentralization
than its counterpart Government of Iraq (GOI) PPL law. The
public in the KR is generally unaware of the role of the PCs
there, largely because KR PCs have had no formal legislative
or budget authority since they were created in 2005. No date
has been set for KR provincial elections, but contacts
speculate that they should occur in late 2009/early 2010.
END SUMMARY.


2. (U) Following more than a year of debate over how
decentralization should be applied in the KR, the IKP finally
passed its version of a provincial powers law on April 20.
The law came into effect with one change requested by the
Kurdistan Regional Government (KRG) President and agreed to
by the IKP ) seats set aside for minority groups on each
provincial council. No date has been set for provincial
elections, but since the mandate of the current PCs expires
on January 31, 2010, contacts speculate that PC elections
will occur in late 2009/early 2010.


3. (U) Similar to the GoI's PPL, the KRG PPL provides for the
creation and election of a governor, PCs, district and
sub-district councils. Each PC will elect a governor and a
chairman and will be responsible for shaping general
provincial policy in coordination with the Kurdistan Regional
Government's line ministries. Each provincial governor will
have the authority to program a "governorate budget," but the
law is vague on a number of details regarding budget
execution. For example, the specific authority that
governors and PCs will have with regard to the infrastructure
projects funded from the regional government is ambiguous.


4. (U) There are also significant differences from the GOI
PPL. KR PC members swear allegiance to Iraqi Kurdistan,
rather than to the federal Iraqi state/GOI. According to the
KR PPL, the PCs' rules and decisions cannot conflict with the
KR Constitution, whereas the federal/GOI PPL states that PC
legislation cannot conflict with the federal Iraqi
Constitution. (NOTE: Although not expressly stated in the
KRG PPL, we understand PC decisions would be null and void if
they conflict with one of the exclusive powers of the federal
government or the basic rights guaranteed by the Iraqi
Constitution. END NOTE). Another difference is that the KR
PPL uses language saying that KR PCs can issue "decisions" or
"regulations." In the GOI PPL, PCs have the authority to
issue "legislation." (NOTE: The difference between
"decisions," "regulations," and "legislation," as found in
the KR PPL, is unclear. END NOTE). In both cases, however,
this power is limited to matters concerning administrative
and financial affairs of the provinces. In addition to being
accountable to the PCs, the provincial governors are
administratively under the jurisdiction of the KRG Ministry
of the Interior, while the federal PPL law establishes "a
Higher Board for administering the governorates," which is
headed by the Prime Minister.


5. (U) There are other differences. While the GOI PPL grants
governors supervisory responsibility over provincial security
forces (except the Iraqi Army),the KRG PPL does not
expressly empower the governor to oversee any security forces
(civilian or Peshmerga) other than to "investigate crimes."
The KRG PPL permits each province to keep and spend only the
revenue that it earns from KRG-owned moveable assets and
Qrevenue that it earns from KRG-owned moveable assets and
services provided by the provincial government, such as sale
or lease of KRG-owned property. The GOI PPL permits
governorates to keep the proceeds of the sale of both
moveable and immoveable assets. The federal PPL also permits
governorates to impose fees and fines, and to keep money from
investment projects. The KRG PPL requires a minimum of 30%
female membership in the provincial, district and
sub-district councils, while the GOI version has no such
stipulation. Also stipulated in the KRG version is a
minority quota for each of the provincial councils,
proportionate to the population of a given group within a
given province. Finally, the GOI PPL authorizes the governors
of provinces to establish universities in coordination with
the GOI Ministry of Higher Education. The KRG PPL does not
authorize this.

REACTIONS VARY BY PROVINCE
--------------


6. (SBU) Soran Faizy, Chairman of the Erbil PC, says that the
relatively limited decentralization in the new PPL is

BAGHDAD 00001969 002 OF 003


justified because it is of utmost importance for the KRG to
remain strong so that it can present a united front to the
rest of Iraq. Dr. Fadel Omer, Chairman of the Dohuk
Provincial Council, also believes that, "For Kurdistan, at
this time, this law is not bad." Omer points out that the
law grants the Governor and PC some budget execution
authority and the authority to appoint some provincial public
sector employees. The PCs will also be free to make some
administrative decisions that previously had to be routed
through the KRG. Omer believes that these changes, plus
features that allow the provinces to retain and spend their
own internal revenues, will facilitate significant
improvements in provincial public administration and service
delivery.


7. (SBU) But Dr. Omer also cautions that the new law will not
be a panacea to all of the woes of the KRG's extremely
centralized form of public administration. Each line
ministry in Erbil will still have a budget to program for
infrastructure projects and other expenses as the ministry
deems appropriate. (COMMENT: That portion of the budget
controlled by the KRG Council of Ministers (COM) constitutes
the lion's share of the 17% of the national budget that comes
to the KR. END COMMENT). But Omer believes that the new law
will provide a stronger foundation for the PCs to petition
the COM for a more equitable distribution of resources.
(COMMENT: Dohuk residents frequently say that Dohuk receives
Erbil's leftovers. Their concern is rooted in the fact that
the KR budget is split along political party lines, with 48%
going to the Patriotic Union of Kurdistan (PUK) and 52% going
to the Democratic Party of Kurdistan (KDP). While the PUK
portion goes exclusively to Sulaimaniyah Province, the KDP
portion is shared between Erbil and Dohuk Provinces. Because
the KDP politburo sits in Erbil, many contend that Erbil
dominates the shared portion of the budget. END COMMENT).


8. (SBU) The tone in Sulaimaniyah Province is quite
different. Kawa Abdullah, Chairman of the Sulaimaniyah PC,
believes that the KR PPL indicates the KRG's blatant attempt
to "adopt a Ba'athist model" of public administration. Said
Abdullah, "In the beginning, (the KRG) said that we wanted to
export democracy to the rest of Iraq. But it seems that we
have given it all away and kept none for ourselves."
Sulaimaniyah Governor Dana Majed concurs, believing that this
law effectively reduces the PCs to monitoring bodies. Both
Abdullah and Majed are angry that the proposed KR
Constitution does not mention or authorize the existence of
PCs. Majed believes that the omission is a direct attempt to
override the authority of the PCs and make their existence
dependent on the pleasure of the KRG president. In a letter
to KRG President Masu'd Barzani written in early June, 32 of
35 members of the Sulaimaniyah PC offered a point-by-point
protest of the differences between the KRG PPL and GOI PPL.

PROVINCIAL COUNCIL? WHAT PROVINCIAL COUNCIL?
--------------


9. (U) During a recently-televised talk show on a local
channel in Dohuk, callers were asked to identify the members
of their PC (of which there are 41.) Callers could only
identify five. While anecdotal, this example illustrates
just how little some in the KR know about the existence
and/or the proper role of the PCs. Contacts in Erbil and
Dohuk say that this is largely because the PCs have appeared
inactive since their election. As in the rest of Iraq, the
KR has had PCs since 2005 (created by CPA Order 71). But
until the passage of the KRG PPL, those PCs had no authority
Quntil the passage of the KRG PPL, those PCs had no authority
under KRG law, and they were not covered by the GOI PPL
passed in late 2008. The work of the three PCs has
essentially depended on the personalities of their provincial
governors. For Erbil and Dohuk, that has resulted in the PCs
having consultative relationships with their governors, but
doing very little in their own names. Erbil PC Chairman
Faizy says that the governor is the person who is seen
implementing these suggestions, and as such, is the person
who receives the credit. Said Faizy, "When we ran for
election in 2005, we had an agenda and people voted for us
based on what they thought we would do. But because we had
no authority to implement this agenda, the people lost faith
in the PC."


10. (SBU) The activities of the Sulaimaniyah PC seem more
visible to the public. Sulaimaniyah PC Chairman Abdullah
says that the PC takes great efforts to be transparent in
their budget execution activities, and to allocate resources
on the basis of population and need. The PC works
hand-in-hand with Sulaimaniyah Governor Majed to implement
governorate budget-funded infrastructure projects and deliver
services and shares the credit with him for provincial
development and resource distribution.


BAGHDAD 00001969 003 OF 003



11. (SBU) COMMENT: Decentralization in the form of the KRG
PPL has come late to the Kurdistan Region. As anticipated
(reftel),the strong influence of the KRG Executive Branch in
the drafting and related debate of the PPL has resulted in
the continuation of a more centralized administration than in
the provinces covered by the GOI Provincial Powers Law. END
COMMENT.
FORD