The Ministry of Finance and Economy of the Kurdistan Regional Government (KRG) has issued a statement denying any role in the ongoing delays in salary payments to KRG employees. According to the Ministry, payroll lists were submitted to the Federal Ministry of Finance 31 days ago, yet only a fraction of the required funds has been disbursed.

The statement highlights that the Federal Ministry of Finance has only released 1.426 billion dinars so far, a sum that accounts for just 0.14% of the total amount needed to cover the salaries of KRG employees. This amount was allocated specifically to the Audit Bureau, the Integrity Commission, and the Environmental Commission.

The KRG Ministry of Finance further clarified that it had addressed the issue of duplicate names among salary recipients, finding no legal issues in the majority of cases. The Ministry stated that most recipients have complete and legal records, although some individuals also receive social welfare payments from the federal government. The Ministry emphasized that it was the responsibility of the Federal Ministry to cease these welfare payments if necessary, rather than halting salary disbursements.

The Ministry also addressed concerns regarding the lack of biometric records, acknowledging that not all employees and retirees have completed biometric registration. The delay is attributed to various factors, including the presence of heirs of retirees and some employees residing abroad. The Ministry said it had informed the Federal Ministry of Finance of this issue in advance.

In the statement, the KRG Ministry of Finance noted that the total amount typically disbursed by Baghdad for KRG salaries is 950 billion dinars. However, the payroll for July exceeded this by 54 billion dinars, bringing the total to over one trillion dinars. This increase is attributed to the recent adjustment of retiree pensions, aligning them with the pensions of retirees in the rest of Iraq, in compliance with a Federal Court decision.

The Ministry called on the Federal Government to cooperate and coordinate with the KRG to resolve these ongoing technical issues. The statement criticized the treatment of KRG employees and salary recipients, urging Baghdad to address the matter and avoid further complications.

As of now, the disbursement of only 1.426 billion dinars remains a point of contention, with the KRG Ministry of Finance insisting on the necessity of a more collaborative approach to ensure timely salary payments for all KRG employees.