VZCZCXRO0173
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #0695/01 0691035
ZNR UUUUU ZZH
R 091035Z MAR 08 ZDK NUMEROUS SVCS
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 6129
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 04 BAGHDAD 000695 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KDEM SOCI ECON IZ
 
SUBJECT:  PRT KIRKUK: COUNCILS CONVOCATION II - 
THE KURDISH SESSION 
 
REF:  BAGHDAD 600 
 
BAGHDAD 00000695  001.2 OF 004 
 
 
¶1.  (U) This is a PRT Kirkuk reporting cable. 
 
¶2.  (SBU) Summary:  Rizgar Ali, Chairman of the Kirkuk Provincial 
Council (PC), convened a second information sharing session on 
February 24 with the primarily Kurdish and Turkman district and 
sub-district councils to discuss council operations, roles and 
responsibilities.  Rizgar focused his introductory remarks on an 
emerging conflict with the Ministry of Oil (MoO) involving the 
transfer of two oil drilling rigs from the Northern Oil Company 
(NOC) to the Southern Oil Company (SOC).  He complained about the 
lack of clear instructions from the Ministries of Finance (MOF) and 
Planning and Cooperative Development (MOPDC) on how to execute 
projects, which he feels undermines the PC's ability to provide 
adequate project oversight.  Rizgar also called for the GoI to 
conduct a new census due to outdated population data.  During 2008, 
Rizgar said he will initiate a project to provide Internet 
connectivity to the local councils (LCs).  He also called for all 
LCs to create committees corresponding to the PC's to coordinate 
projects vertically.  He further intends to reestablish an informal 
system to function like district-based representation between the PC 
and district constituents.  End Summary. 
 
¶3.  (SBU) Rizgar Ali, Chairman of the Kirkuk PC, convened the second 
of two information sharing sessions on February 24 with the 
predominantly Kurdish and Turkman districts and sub-districts 
(reftel), to discuss the roles and responsibilities of councils. 
Rizgar also spoke on the possible impact that implementation of the 
Provincial Powers Law (PPL) will have on budgeting and finance 
processes, funding sources, capital projects issues, and 
coordination between different levels of government and with the 
national line ministries. 
 
¶4.  (SBU) During his introductory remarks, Rizgar shared his views 
on the developing situation with a Ministry of Oil (MoO) mandated 
reassignment of two of the country's nine oil drilling platforms 
from the Northern Oil Company (NOC) area to the Southern Oil Company 
(SOC) area.  Rizgar feels this pending move will only serve to 
exacerbate Kirkuki perceptions of GoI favoritism toward the Shi'a 
south.  He used the example of the GoI's resistance to building a 
refinery in Kirkuk to bolster his point, opining that the MoO's 
overall design is to ensure that the Northern provinces cannot be 
both large-scale producers and refiners.  Rizgar complained that the 
MoO still maintains absolute control of hiring for the NOC and 
accused it of employing people from other provinces to work in 
Kirkuk before considering the existing qualified workforce that 
resides in Kirkuk. 
 
¶5.  (SBU) Rizgar stated that during a recent conversation with the 
Commander of the 4th Iraqi Army Brigade, the Commander informed him 
that, contrary to previous information, the Brigade would play no 
role in the redeployment of the drilling platforms.  Discussing the 
possibility of Coalition Forces (CF) involvement in such a move, 
Rizgar stated that relations between CF and the PRT would be 
severely damaged.  He did not specify with whom such relations would 
suffer.  (Comment:  Rizgar seems to suggest that military assistance 
will be necessary for the redeployment of the drilling platforms to 
guard against any armed resistance. End Comment.) 
 
¶6.  (SBU) Rizgar reported that the Minister of Oil had recently made 
more than one "secret" trip to Kirkuk using CF transportation, and 
that, "doing so was a mistake."  Rizgar also noted that although 
Kirkuk produces high quality crude oil, in return the Province 
receives low quality refined products, suggesting further evidence 
of Baghdad-based bias against Kirkuk. 
 
¶7.  (SBU) Rizgar also raised the Article 140 issue and the presence 
of Wafideen NOC employees, who are principally Shi'a Arabs who 
Saddam moved into Kirkuk province as part of his resettlement 
program.  He accused the MoO of neglecting to facilitate their 
resettlement. Rizgar concluded that the "SOC's budget is larger than 
NOC's," and that he didn't understand the need to redeploy the 
drills.  (Comment: It was unclear whether Rizgar was speaking as the 
PC Chairman or as a senior provincial PUK official and between which 
parties CF involvement would harm relations.  End Comment.) 
 
¶8.  (U) While discussing council funding sources, Rizgar said 
without clear instructions from the MoPDC and MOF on how to execute 
projects, there was confusion about how or when the PC should become 
involved in the budget execution phase.  Rizgar explained that part 
of the confusion stems from the rejection of "Bremer's Law," (CPA 
71) and the absence of a legal basis for PC action.  Without clear 
instructions, he warned that the PC would "pull back" from the 
project process.  Rizgar cited as an example that the PC had hired 
40 project engineers in 2007 who are still without work assignments 
because of existing confusion about budget execution. 
 
¶9.  (SBU) A heated exchange erupted between several local council 
members when Rizgar raised the PC's population-based method for 
 
BAGHDAD 00000695  002.2 OF 004 
 
 
allocation of project funds.  One Yaychi sub-district council member 
argued that the forced emigration of the Saddam-era led to 
inaccurate population counts.  According to Rizgar, in Sargaran 
sub-district there are no registered public distribution system 
ration cards, so using PDS as a population source would deny any 
funding.  Sargaran sub-district residents temporarily residing in 
Kirkuk City have re-registered there for the ease in receiving their 
rations but maintain their residency in Sargaran sub-district. 
UNCLASSIFIED 
 
SIPDIS 
PROG 03/09/2008 
PRT:HKEEGAN 
PRT:BEMCFARLAND 
PRT:APDELOREY POL:MDALE 
POL 
 
AMEMBASSY BAGHDAD 
SECSTATE WASHDC ROUTINE 
INFO IRAQ COLLECTIVE 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KDEM SOCI ECON IZ
 
SUBJECT:  PRT KIRKUK: COUNCILS CONVOCATION II - 
THE KURDISH SESSION 
 
REF:  BAGHDAD 600 
 
¶1.  (U) This is a PRT Kirkuk reporting cable. 
 
¶2.  (SBU) Summary:  Rizgar Ali, Chairman of the Kirkuk Provincial 
Council (PC), convened a second information sharing session on 
February 24 with the primarily Kurdish and Turkman district and 
sub-district councils to discuss council operations, roles and 
responsibilities.  Rizgar focused his introductory remarks on an 
emerging conflict with the Ministry of Oil (MoO) involving the 
transfer of two oil drilling rigs from the Northern Oil Company 
(NOC) to the Southern Oil Company (SOC).  He complained about the 
lack of clear instructions from the Ministries of Finance (MOF) and 
Planning and Cooperative Development (MOPDC) on how to execute 
projects, which he feels undermines the PC's ability to provide 
adequate project oversight.  Rizgar also called for the GoI to 
conduct a new census due to outdated population data.  During 2008, 
Rizgar said he will initiate a project to provide Internet 
connectivity to the local councils (LCs).  He also called for all 
LCs to create committees corresponding to the PC's to coordinate 
projects vertically.  He further intends to reestablish an informal 
system to function like district-based representation between the PC 
and district constituents.  End Summary. 
 
¶3.  (SBU) Rizgar Ali, Chairman of the Kirkuk PC, convened the second 
of two information sharing sessions on February 24 with the 
predominantly Kurdish and Turkman districts and sub-districts 
(reftel), to discuss the roles and responsibilities of councils. 
Rizgar also spoke on the possible impact that implementation of the 
Provincial Powers Law (PPL) will have on budgeting and finance 
processes, funding sources, capital projects issues, and 
coordination between different levels of government and with the 
national line ministries. 
 
¶4.  (SBU) During his introductory remarks, Rizgar shared his views 
on the developing situation with a Ministry of Oil (MoO) mandated 
reassignment of two of the country's nine oil drilling platforms 
from the Northern Oil Company (NOC) area to the Southern Oil Company 
(SOC) area.  Rizgar feels this pending move will only serve to 
exacerbate Kirkuki perceptions of GoI favoritism toward the Shi'a 
south.  He used the example of the GoI's resistance to building a 
refinery in Kirkuk to bolster his point, opining that the MoO's 
overall design is to ensure that the Northern provinces cannot be 
both large-scale producers and refiners.  Rizgar complained that the 
MoO still maintains absolute control of hiring for the NOC and 
accused it of employing people from other provinces to work in 
Kirkuk before considering the existing qualified workforce that 
resides in Kirkuk. 
 
¶5.  (SBU) Rizgar stated that during a recent conversation with the 
Commander of the 4th Iraqi Army Brigade, the Commander informed him 
that, contrary to previous information, the Brigade would play no 
role in the redeployment of the drilling platforms.  Discussing the 
possibility of Coalition Forces (CF) involvement in such a move, 
Rizgar stated that relations between CF and the PRT would be 
severely damaged.  He did not specify with whom such relations would 
suffer.  (Comment:  Rizgar seems to suggest that military assistance 
will be necessary for the redeployment of the drilling platforms to 
guard against any armed resistance. End Comment.) 
 
¶6.  (SBU) Rizgar reported that the Minister of Oil had recently made 
more than one "secret" trip to Kirkuk using CF transportation, and 
 
BAGHDAD 00000695  003.2 OF 004 
 
 
that, "doing so was a mistake."  Rizgar also noted that although 
Kirkuk produces high quality crude oil, in return the Province 
receives low quality refined products, suggesting further evidence 
of Baghdad-based bias against Kirkuk. 
 
¶7.  (SBU) Rizgar also raised the Article 140 issue and the presence 
of Wafideen NOC employees, who are principally Shi'a Arabs who 
Saddam moved into Kirkuk province as part of his resettlement 
program.  He accused the MoO of neglecting to facilitate their 
resettlement. Rizgar concluded that the "SOC's budget is larger than 
NOC's," and that he didn't understand the need to redeploy the 
drills.  (Comment: It was unclear whether Rizgar was speaking as the 
PC Chairman or as a senior provincial PUK official and between which 
parties CF involvement would harm relations.  End Comment.) 
 
¶8.  (U) While discussing council funding sources, Rizgar said 
without clear instructions from the MoPDC and MOF on how to execute 
projects, there was confusion about how or when the PC should become 
involved in the budget execution phase.  Rizgar explained that part 
of the confusion stems from the rejection of "Bremer's Law," (CPA 
71) and the absence of a legal basis for PC action.  Without clear 
instructions, he warned that the PC would "pull back" from the 
project process.  Rizgar cited as an example that the PC had hired 
40 project engineers in 2007 who are still without work assignments 
because of existing confusion about budget execution. 
 
¶9.  (SBU) A heated exchange erupted between several local council 
members when Rizgar raised the PC's population-based method for 
allocation of project funds.  One Yaychi sub-district council member 
argued that the forced emigration of the Saddam-era led to 
inaccurate population counts.  According to Rizgar, in Sargaran 
sub-district there are no registered public distribution system 
ration cards, so using PDS as a population source would deny any 
funding.  Sargaran sub-district residents temporarily residing in 
Kirkuk City have re-registered there for the ease in receiving their 
rations but maintain their residency in Sargaran sub-district. 
Rizgar stated that the GoI needs a new census but that the PDS was 
the only reasonable source of data for the near future and that, 
"adjustments would have to be made." 
 
¶10.  (U) To improve communications between councils and their 
constituents, levels of government and line ministry local offices, 
Rizgar committed to establishing legislative Internet connectivity. 
He authorized each council to hire two staff members to administer 
and maintain a communications system, including an Internet/email 
system.  He also told the councils that they would need scanners and 
computers so they could transmit documents more quickly rather than 
relying on couriers who are regularly associated with multi-day 
delays. 
 
¶11.  (U) Rizgar said that all district and sub-district councils 
should have the same committee coverage as the PC, offering that LCs 
could have committees covering multiple topics.  The committees 
should send representatives to PC committee meetings and the 
councils themselves should have representatives attending PC 
sessions.  These representatives should report back to their 
respective committees and councils as part of their meeting agenda 
items. 
 
¶12.  (U) Rizgar's comments on councils' budget preparations prompted 
a discussion on how four councils were four months behind in 
receiving cash deliveries to support their monthly budget 
allocations.  Rizgar explained that until the council passes a FY 
2008 budget, all councils will be two months behind on their budget 
allocations and promised to investigate the FY 2007 missing 
transfers.  Several council leaders requested that Rizgar visit 
their councils to hear their concerns, to which Rizgar agreed, and 
promised to visit these councils in the near future. 
 
¶13.  (SBU) The budget discussion also included discussions on 
non-capital fixed assets.  According to Rizgar, Coalition Forces 
have provided vehicles to local councils, but they hadn't been 
titled to the councils, and would require that the councils 
reregister them.  Rizgar also said councils need to report all fixed 
assets in future resource requests. 
 
¶14.  (SBU) A Dibis council member noted that several CF vehicles 
were inoperative and the Council had no means to maintain these 
vehicles.  He explained that the staff shared the costs of operating 
a CF-purchased bus so they could get to work. 
 
¶15.  (SBU) During the open discussion segment, the sole Arab bloc PC 
member present, Mohammed Kadeer, responded to an LC member's point 
about Ministry of Education (MoE) lack of assistance stating that 
the local MoE office hired "over 700" teachers last year for the 
outlying districts but that few if any were actually teaching there. 
 
 
¶16.  (U) Rizgar argued that communication plans should include 
re-establishing district-based council representation.  He pledged 
 
BAGHDAD 00000695  004.3 OF 004 
 
 
he would implement this type of system and designate PC members to 
represent the various districts.  Rizgar also emphasized the 
importance of open meetings and the use of the media to broadcast 
councils' messages.  He felt that much of the public's frustration 
with local government was based on the public's ignorance of 
councils' activities. 
 
¶17.  (SBU) Comment:  The Kurdish and Turkman district councils 
attended this second convocation, following one Rizgar held for the 
primarily Arab districts.  His message was consistent between the 
two with the exception of the Ministry of Oil lecture.  Given his 
primarily Kurdish audience and the sensitivity of the oil-drill 
issue, it is tempting to attribute more significance to it than it 
might deserve - it was a breaking story in the local media. 
Nevertheless, Rizgar did take skillful advantage of the media 
coverage to get his prepared message out.  Regarding budget 
execution, without a continuing resolution process, not passing the 
budget causes difficulties in government operations.  A growing wave 
of public dissatisfaction with the Turkman DG of Education is 
becoming a rallying point for the Turkman bloc's ongoing boycott of 
the PC.  The Turkman bloc recently added a demand to "cease 
harassment of the Education DG" as a condition of ending the PC 
boycott.  End Comment. 
CROCKER