VZCZCXRO4470
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #3727/01 3170849
ZNR UUUUU ZZH
R 130849Z NOV 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 4316
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 02 BAGHDAD 003727 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PHUM IZ
SUBJECT:  DIYALA PRT: COMPENSATION PAYMENTS-STILL WAITING 
 
¶1. (U) This is a Diyala PRT reporting cable. 
 
Summary 
------- 
¶2.  (U) In August 2007, as operation Arrowhead Ripper came to a 
close in Diyala, Deputy Prime Minister (DPM) Barham Salah visited 
the province.  After surveying the damage he promised that USD 50 
million would be made available to repair the homes of those with 
damaged property. To date, administrative roadblocks, bureaucratic 
bungling, fraud and corruption have delayed the process, and no 
compensation payments have been processed.  With colder weather 
approaching, the need for installation of new windows, walls, and 
doors is imperative, but the prospects for progress are unclear. 
End Summary. 
 
Widespread Damage 
----------------- 
¶3.  (U) Although no definitive figures have been gathered, the 
widespread destruction of real estate as a result of Arrowhead 
Ripper operations is apparent when traveling in Diyala.  Provincial 
authorities estimated that most families who filed a claim would be 
eligible for approximately USD 5,000 to repair their homes. 
 
The Plan 
-------- 
¶4.  (U) When approached in late September, the Deputy Governor 
(DGOV) of Diyala, Auwf Rahoumi Majeed Khudayer Al-Rubay'i, stated 
that no forms for compensation would be generated or distributed 
until the funds had been transferred to Diyala, because he feared 
raising citizens' hopes and then disappointing them.  The PRT urged 
and ultimately convinced DGOV Auwf to prepare and distribute claim 
forms in order to determine if the original funds promised would be 
sufficient to cover the needs of the claimants. DGOV Auwf was the 
executive agent for this action because Governor Ra'ad Rasheed 
Hameed Al-Tamimi was recuperating after being injured in an 
assassination attempt. (COMMENT: The PRT had earlier assessed that 
without an estimate of the amount of currency required, the Central 
Bank would not ship funds to Diyala END COMMENT.) 
 
Bureaucracy In Action 
--------------------- 
¶5.  (U) DGOV Auwf and his staff prepared the forms from scratch 
after several long meetings.  The resulting documents required the 
property owner to gather no less than six different signatures, 
starting at the neighborhood level and moving up through several 
local officials.  The purpose of the document was to verify both 
ownership of the property in question and the degree of damage to 
it.  The forms also requested photographs of the damaged property. 
The authorities applied several signatures and stamps to the 
documents in advance, making reproduction more difficult.  (COMMENT: 
The document security measures also had the unfortunate side effect 
of making the forms a controlled item, opening the door for official 
corruption to limit access to them. END COMMENT.)  The executive 
staff of the province also invested time planning for extra Iraqi 
Police (IP) coverage of the Governance Center (GC) during the payout 
process to protect citizens carrying large amounts of cash.  The 
forms were shipped to various cities throughout the province with 
the expectation that they would be completed within a few weeks and 
returned. 
 
The Best Laid Plans 
------------------- 
¶6.  (U) As soon as Ramadan ended, the provincial authorities began 
to receive compensation claims.  A review of the completed forms 
indicated that the forms security measures were of little effect 
because the signing officials did not actually view the damage or 
certify ownership of the property.  Multiple owners of the same 
property, duplicate photographs associated with different 
properties, and the sale of forms to claimants were among the 
fraudulent practices identified.  The office of the DGOV quickly 
realized the susceptibility of claims forms to fraud, and decided to 
stop accepting the forms.  No action has been taken against those 
who filed fraudulent forms to date. Also, there have been no reports 
of officials being reprimanded or fired for selling the forms or 
signing them without seeing the property. 
 
Do Over or Time Out? 
-------------------- 
¶7.  (U) A new streamlined form still under revision requires IP 
verification of the damage claimed and a certified copy of the deed 
to the property in question.  Photographs will still be requested to 
process the claim.  It is unclear when the provincial government 
will ship the new forms and the Central Bank has still not yet 
released any of the promised currency, despite promising to have it 
shipped to the GC on 21 October. 
 
Comment 
------- 
¶8. (U) In Baquba and other cities the need for compensation is 
clear.  Homes have gaping holes in the walls, missing doors, and no 
windows.  What is also clear is that the small businesses that 
supply lumber, bricks, reinforced iron bars, cement, glass and paint 
 
BAGHDAD 00003727  002 OF 002 
 
 
are open and doing business.  To avoid more suffering and increased 
disenchantment with the government, it is imperative that the GOI 
get the money into the hands of citizens before the weather turns 
colder.  To delay compensation only increases the risk of greater 
unrest. 
 
CROCKER