In a completion of the efforts been exerted by Iraqi National Business Council since 2004 regarding the contractors’ dues, the council made an active movement with the related authorities in this regard, which was crowned by holding a workshop in the Ministry of Planning on Wednesday, June 22, 2016 with the special committee to lay down a mechanism of paying the dues of the contractors thru the government bonds, in the present of Mr. Salman Al-Jumaili the Minister of Planning the Committee Chairman, and committee members, each of Mr. Fadhil Abed Nabi the Deputy of Ministry of Finance, Mr. Mahir Johan the Deputy of Ministry of Planning, Mr. Deputy Governor of Central Bank, and Dr. Mudhir Mohammed Salih and Mr. Kadhim
Al-Hasani the Advisors of the Prime Minister, in the presence of the Representatives: Mr. Nadhim Al-Saedi the Chairman of the Parliamentary Services and Reconstruction Committee, and Mr. Ahmed Al-Kinani and Mr. Yahya Al-Ethawi the members of the Parliamentary Economy and Investment Committee.At the workshop, what the committee has reached was reviewed, that the bonds covers 40% of the payable dues with an interest of 5% and shall be payable after three years not two. Liquidity has been provided in the banks: Al-Rafidain, Al-Rasheed and Trade to liquidate all bonds with 40% of the contractors’ dues equally for whoever is willing; furthermore, a committee of experts was constituted to appraise strategic projects according to need, from those that their percentage of completion is high, to pay 100% of their dues, along with obtaining the required undertakings to complete them. of their dues, along with obtaining the required undertakings to complete them. The committee also explained that the remaining 60% of the dues will be paid after auditing these projects by the Federal Board of Supreme Audit, as requested by the International Monetary Fund, and the auditing is about 87% complete up to the moment. Mr. Dawood Abed Zayer the President of Iraqi National Business Council delivered a speech, in which he demonstrated this problem and highlighted the grievance and suffering of the contractors, and how that affects all the contracting companies, and he clearly requested
the government and committee to return to the payment ratio of payment to 50% of the dues, while asking the government: Is this a reward from the government to the government and committee to return to the payment ratio of payment to 50% of the dues, while asking the government: Is this a reward from the government to these companies that contributed in reconstructing Iraq? That they are inflicted with these serious losses and bankruptcy sometimes, and how to build confidence in future? The Engineer Emad Majid Neama the Head of Maisan Contractors Gathering delivered a speech, in which he requested the attendants to stay away from courtesies and discuss the suffering of the contractors, because their problem which became a human crisis for its social and tribal challenges that the contractor pays its price daily, he addressed committee the “we hold the government and you the full responsibility for any damage that inflicts the contractors and their families as result of delay in payment and I request you to reply to the following questions” :
1-What is the mechanism by which the bonds will be paid and how the contractor will convert them into cash?
2-When the payment of bonds will start?
And the Minister of Planning asked for a clear answer about these questions, which were replied by the Deputy of Ministry of Finance Mr. Fadhil Abdulnabi, as he said:
The mechanism will be as follows: after the lists of due arrives to the Ministry of Planning, they will be audited and sent to the Ministry of Planning, which will send a letter of payment to the Central Bank, which will pay the bonds to the contractor and he will be able to go to Al-Rasheed, Al-Rafidain and Trade banks to convert them into cash. Letters of payment will be sent to every authority (Governorate or Ministry, etc.), once they are received.
2- Ministry of Finance will begin sending the letters of payment to the Central Bank for the first batch of lists that already have been received from the Ministry of Planning, before the Lesser Feast on God’s will. Mr. Minister of Planning will raise a recommendation to the Prime Ministry in order to send a circular that is binding to all the contractual departments to give a specific timeframe to provide the lists of dues; otherwise the contractual department shall bear all the legal and administrative consequences. Engineer Abdullah Awaiz Al-Jibouri raised a question in case that all advance payments were not sent by the ministries to the Ministry of Planning? Also Dr. Salman Al-Jumaili the Minister of Planning explained the contractual department shall bear the legal consequences and the accountability of Integrity Commission in case of not raising the payable dues of any contractor. Mr. Khalid Al-Obaidi approached and put forward the subject of the liability clearance from the General Commission for Taxes, were not sent by the ministries to the Ministry of Planning? Also Dr. Salman Al-Jumaili the Minister of Planning explained the contractual department shall bear the legal consequences and the accountability of Integrity Commission in case of not raising the payable dues of any contractor. Mr. Khalid Al-Obaidi approached and put forward the subject of the liability clearance from the General Commission for Taxes, as the commission makes a condition to transfer the full tax amount in order to issue a liability clearance and the Deputy of the Ministry of Finance replied that it will issue circulars on condition that the tax amount shall be a debt on the ministries until there is liquidity. Mr. Dawood Abed Zayer demanded that these bonds enter into currency auction in case the contractor is credited dues in Dollar with banks in order to open letter of credit for the same purpose of project, and the Deputy Governor promised to put the subject forth to the Governor of Central Bank. Based on the principal (take then demand), we consider what is stated in this workshop as step in the way of obtaining all the rights of contractors’ community. The delegation of council consisted of: Engineer Sabah the Vice Chairman of Council, Mr. Ali Muftin the Board Member, Engineer Luay Al-Saeed the Board Member, Mr. Alaa Al-Attabi the Board Member, Mr. Khalid Al-Obaidi the Board Member and the Consultant Engineer Abdullah Awaiz Al-Jibouri