VZCZCXRO2355
PP RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHGB #1969/01 2021155
ZNR UUUUU ZZH
P 211155Z JUL 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 4014
INFO RUCNRAQ/IRAQ COLLECTIVE

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