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[size=52]The decision to transfer oil companies from self-financing to central financing ignites the Iraqi street.. What is the story?[/size]
[size=45]The Cabinet's decision to transfer oil companies from self-financing to central financing has sparked controversy, leading to angry protests in southern Iraq, followed by parliamentary objections.[/size]
[size=45]Yesterday, Tuesday, Basra Governorate employees organized demonstrations in all oil sites and fields, protesting their transformation into a “losing” sector, as they put it.[/size]
[size=45]The representative of the demonstration, Ahmed Hawas, said, “This is the beginning of a protest stand by oil sector employees in oil companies in general, and after that there will be protests that may lead to the closure of sites.”[/size]
[size=45]He added, "The Rumaila oil site, Burjesia, Majnoon field, Nahran Omar, Bab Al-Zubair, and Basra Oil Company's main site were closed."[/size]
[size=45]Hawas explained that “the central funding decision will turn the oil sector into a losing sector,” noting that “1% of the salaries of the employees of these oil companies go to support the Popular Mobilization Forces, as well as support for health centers in the governorate, and support for the children’s hospital, in addition to allocating a portion of the profits to social benefits such as building schools and squares. When profitable companies are turned into losing companies or central funding, Basra will be deprived of these privileges.”[/size]
[size=45]For his part, the demonstrator Karim Hassan stressed that “the Southern Oil Company represents the lifeblood of Iraq, as 90% of Iraq’s budget comes from southern oil, and this is an injustice to the employee.”[/size]
[size=45]The demonstrators demanded that the Prime Minister “stand by them and reverse this decision,” stressing that “if the matter escalates, we will close all oil sites and fields in the province.”[/size]
[size=45]For its part, the Parliamentary Oil, Energy and Natural Resources Committee explained today, Wednesday, the extent of the impact of the Cabinet’s decision to transfer oil companies from self-financing to central financing on the Iraqi economy and the work of these companies.[/size]
[size=45]Committee member MP Ali Al-Lami said, “We expressed our reservations about the Cabinet’s decision to transfer oil companies to central financing.”[/size]
[size=45]Al-Lami explained that “these companies operate according to the Companies Law voted on by the House of Representatives, and it is not possible for it to be cancelled by a decision from the Council of Ministers,” stressing that “this decision will negatively affect the work of oil companies.”[/size]
[size=45]He pointed out that "90% of the Iraqi state budget comes from oil companies, so any decision that is not in the interest of the companies will negatively affect the work of these companies."[/size]
[size=45]Al-Lami revealed that “we, in the Oil Committee, will host the Minister of Oil and the advanced staff of the ministry next Sunday to discuss this issue, and we will come out with recommendations and a statement to the Council of Ministers.”[/size]
[size=45]In addition, the unions and federations affiliated with the International Federation of Industries issued a statement regarding the Cabinet’s decision to transfer oil companies from self-financing to central financing.[/size]
[size=45]She stated, “We are following with great concern what is happening in the Iraqi arena in the oil sector, the decision issued by the Council of Ministers No. 24600 of 2024, which calls for transferring the revenues of self-financed oil companies to central financing and transferring them to the Ministry of Finance and increasing the treasury’s share from 45 to 75%. This is in violation of the Companies Law in force No. 22 of 1997, which regulates the work of companies and authorizes them to retain their resources to use them to finance their expenses, develop their facilities, and pay their members’ dues from salaries, bonuses, and profits.”[/size]
[size=45]She added, "The insistence of the Council of Ministers on such an ill-considered decision will turn profitable companies into losing companies as a result of the financial deficit that afflicts them, as these companies will not be able to develop their work and keep pace with the economic renaissance and technological development, and today some politicians want to thwart the national effort."[/size]
[size=45]She demanded “the cancellation of the decision issued by the Council of Ministers No. 24600, as it is an ill-considered decision that harms…”[/size]
[size=45]In the public interest of the country in general,” warning against “continuing to implement this decision because it will lead to the disruption of the wheel of production if the members are harmed financially.”[/size]
[size=45]She pointed out that “there are many treatments to fill the deficit in the state budget without resorting to creating chaos in the stable sectors,” indicating that “everyone knows that the efforts of workers in the oil sector, especially the extractive companies, which provide a great service to the Iraqi state by increasing production, knowing that all the amounts of exported oil go to the Ministry of Finance and the employee or worker does not benefit from them. This is how those who provide a service to the state are rewarded.”[/size]
[size=45]The statement added, "For the sake of the public interest, we are committed to caution against the consequences of continuing with such decisions. Sixth, for the sake of the public interest, we are committed to caution against the consequences of the state and the ministry continuing to punish members and those who call for demands for their rights with administrative penalties and transfer, as happened in the recent demonstrations in the southern refinery companies."[/size]
[size=45]They demanded “the cancellation of the administrative orders for forced transfer that were issued against some of those assigned from their work sites to other sites. We also demand the dropping of the charges against a section of the workers in the Karkh Investigation Court for their participation in the demonstrations. This is contrary to what was stipulated in the Iraqi constitution, which guarantees the right to demonstrate. We also condemn what the heroes did in the oil and gas sector, especially the Basra Oil Company, by announcing that it would lead to instability and, as a result, expel investment in this important sector. They demand their rights to go out in a large demonstration despite their knowledge of the intentions of the government and the ministry.”[/size]
[size=45]In return, the Southern Refineries Oil Company called for an emergency session, and according to a document, “Based on the responsibility placed on our shoulders as the company’s board of directors and based on Companies Law No. 19 (No. 22 of 1997, Article 19) and in view of the issuance of Cabinet Resolution No. (24600) of 2024, which was communicated to us in the margin of the Minister’s letter to the General Secretariat of the Council of Ministers No. (38033) on 8/15/2024, which has serious consequences for our company administratively and financially, and based on your powers and according to the above-mentioned Companies Law, Article (23), secondly, we kindly request your approval to hold an emergency session of the company’s board of directors to vote on rejecting the paragraphs that harm our company’s interests and threaten its bankruptcy and transform it into a losing company without liquidity.”[/size]
[size=45]Earlier, the Council of Ministers decided in its thirty-third regular session held on 8/13/2024, that “public companies shall send (80) the amount due for the treasury’s share, shown in the financial statements under audit for the fiscal year / 2023 and previous years, to the Ministry of Finance within (seven) working days starting from the date of issuance of this decision without waiting for the completion of the audit by the Federal Financial Supervision Bureau, provided that the final settlement is made later after the completion of the audit.”[/size]
[size=45]He pointed out that “the percentage of the treasury’s share mentioned in Article (11/Fourth/1) of the Public Companies Law (No. 22 of 1997) has been increased to (75%) instead of (45%) in all public companies for the year 2024 and subsequent years.”[/size]
[size=45]The Council of Ministers obligated the Ministry of Oil to pay the fees of its affiliated refinery companies and record them as final revenue to the public treasury starting from 8/1/2024.[/size]
[size=45]He pointed out that the amounts of petroleum product exports will continue to be transferred directly to the Ministry of Finance, in addition to the transfer of revenues from local sales of petroleum products directly to the account of the Ministry of Finance.[/size]
[size=45]He stressed that the Federal Financial Supervision Bureau shall follow up on the paragraphs stated in this decision.[/size]
[size=45][You must be registered and logged in to see this link.]
[size=52]The decision to transfer oil companies from self-financing to central financing ignites the Iraqi street.. What is the story?[/size]
[size=45]The Cabinet's decision to transfer oil companies from self-financing to central financing has sparked controversy, leading to angry protests in southern Iraq, followed by parliamentary objections.[/size]
[size=45]Yesterday, Tuesday, Basra Governorate employees organized demonstrations in all oil sites and fields, protesting their transformation into a “losing” sector, as they put it.[/size]
[size=45]The representative of the demonstration, Ahmed Hawas, said, “This is the beginning of a protest stand by oil sector employees in oil companies in general, and after that there will be protests that may lead to the closure of sites.”[/size]
[size=45]He added, "The Rumaila oil site, Burjesia, Majnoon field, Nahran Omar, Bab Al-Zubair, and Basra Oil Company's main site were closed."[/size]
[size=45]Hawas explained that “the central funding decision will turn the oil sector into a losing sector,” noting that “1% of the salaries of the employees of these oil companies go to support the Popular Mobilization Forces, as well as support for health centers in the governorate, and support for the children’s hospital, in addition to allocating a portion of the profits to social benefits such as building schools and squares. When profitable companies are turned into losing companies or central funding, Basra will be deprived of these privileges.”[/size]
[size=45]For his part, the demonstrator Karim Hassan stressed that “the Southern Oil Company represents the lifeblood of Iraq, as 90% of Iraq’s budget comes from southern oil, and this is an injustice to the employee.”[/size]
[size=45]The demonstrators demanded that the Prime Minister “stand by them and reverse this decision,” stressing that “if the matter escalates, we will close all oil sites and fields in the province.”[/size]
[size=45]For its part, the Parliamentary Oil, Energy and Natural Resources Committee explained today, Wednesday, the extent of the impact of the Cabinet’s decision to transfer oil companies from self-financing to central financing on the Iraqi economy and the work of these companies.[/size]
[size=45]Committee member MP Ali Al-Lami said, “We expressed our reservations about the Cabinet’s decision to transfer oil companies to central financing.”[/size]
[size=45]Al-Lami explained that “these companies operate according to the Companies Law voted on by the House of Representatives, and it is not possible for it to be cancelled by a decision from the Council of Ministers,” stressing that “this decision will negatively affect the work of oil companies.”[/size]
[size=45]He pointed out that "90% of the Iraqi state budget comes from oil companies, so any decision that is not in the interest of the companies will negatively affect the work of these companies."[/size]
[size=45]Al-Lami revealed that “we, in the Oil Committee, will host the Minister of Oil and the advanced staff of the ministry next Sunday to discuss this issue, and we will come out with recommendations and a statement to the Council of Ministers.”[/size]
[size=45]In addition, the unions and federations affiliated with the International Federation of Industries issued a statement regarding the Cabinet’s decision to transfer oil companies from self-financing to central financing.[/size]
[size=45]She stated, “We are following with great concern what is happening in the Iraqi arena in the oil sector, the decision issued by the Council of Ministers No. 24600 of 2024, which calls for transferring the revenues of self-financed oil companies to central financing and transferring them to the Ministry of Finance and increasing the treasury’s share from 45 to 75%. This is in violation of the Companies Law in force No. 22 of 1997, which regulates the work of companies and authorizes them to retain their resources to use them to finance their expenses, develop their facilities, and pay their members’ dues from salaries, bonuses, and profits.”[/size]
[size=45]She added, "The insistence of the Council of Ministers on such an ill-considered decision will turn profitable companies into losing companies as a result of the financial deficit that afflicts them, as these companies will not be able to develop their work and keep pace with the economic renaissance and technological development, and today some politicians want to thwart the national effort."[/size]
[size=45]She demanded “the cancellation of the decision issued by the Council of Ministers No. 24600, as it is an ill-considered decision that harms…”[/size]
[size=45]In the public interest of the country in general,” warning against “continuing to implement this decision because it will lead to the disruption of the wheel of production if the members are harmed financially.”[/size]
[size=45]She pointed out that “there are many treatments to fill the deficit in the state budget without resorting to creating chaos in the stable sectors,” indicating that “everyone knows that the efforts of workers in the oil sector, especially the extractive companies, which provide a great service to the Iraqi state by increasing production, knowing that all the amounts of exported oil go to the Ministry of Finance and the employee or worker does not benefit from them. This is how those who provide a service to the state are rewarded.”[/size]
[size=45]The statement added, "For the sake of the public interest, we are committed to caution against the consequences of continuing with such decisions. Sixth, for the sake of the public interest, we are committed to caution against the consequences of the state and the ministry continuing to punish members and those who call for demands for their rights with administrative penalties and transfer, as happened in the recent demonstrations in the southern refinery companies."[/size]
[size=45]They demanded “the cancellation of the administrative orders for forced transfer that were issued against some of those assigned from their work sites to other sites. We also demand the dropping of the charges against a section of the workers in the Karkh Investigation Court for their participation in the demonstrations. This is contrary to what was stipulated in the Iraqi constitution, which guarantees the right to demonstrate. We also condemn what the heroes did in the oil and gas sector, especially the Basra Oil Company, by announcing that it would lead to instability and, as a result, expel investment in this important sector. They demand their rights to go out in a large demonstration despite their knowledge of the intentions of the government and the ministry.”[/size]
[size=45]In return, the Southern Refineries Oil Company called for an emergency session, and according to a document, “Based on the responsibility placed on our shoulders as the company’s board of directors and based on Companies Law No. 19 (No. 22 of 1997, Article 19) and in view of the issuance of Cabinet Resolution No. (24600) of 2024, which was communicated to us in the margin of the Minister’s letter to the General Secretariat of the Council of Ministers No. (38033) on 8/15/2024, which has serious consequences for our company administratively and financially, and based on your powers and according to the above-mentioned Companies Law, Article (23), secondly, we kindly request your approval to hold an emergency session of the company’s board of directors to vote on rejecting the paragraphs that harm our company’s interests and threaten its bankruptcy and transform it into a losing company without liquidity.”[/size]
[size=45]Earlier, the Council of Ministers decided in its thirty-third regular session held on 8/13/2024, that “public companies shall send (80) the amount due for the treasury’s share, shown in the financial statements under audit for the fiscal year / 2023 and previous years, to the Ministry of Finance within (seven) working days starting from the date of issuance of this decision without waiting for the completion of the audit by the Federal Financial Supervision Bureau, provided that the final settlement is made later after the completion of the audit.”[/size]
[size=45]He pointed out that “the percentage of the treasury’s share mentioned in Article (11/Fourth/1) of the Public Companies Law (No. 22 of 1997) has been increased to (75%) instead of (45%) in all public companies for the year 2024 and subsequent years.”[/size]
[size=45]The Council of Ministers obligated the Ministry of Oil to pay the fees of its affiliated refinery companies and record them as final revenue to the public treasury starting from 8/1/2024.[/size]
[size=45]He pointed out that the amounts of petroleum product exports will continue to be transferred directly to the Ministry of Finance, in addition to the transfer of revenues from local sales of petroleum products directly to the account of the Ministry of Finance.[/size]
[size=45]He stressed that the Federal Financial Supervision Bureau shall follow up on the paragraphs stated in this decision.[/size]
[size=45][You must be registered and logged in to see this link.]
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