More Iraqi News Friday PM 10-30-20

More Iraqi News Friday PM 10-30-20

TLM724 Administrator BondLady’s Corner

The Financial Control Report breaks into the secrets of electricity and exposes serious loopholes in contracts

Energy   Economy News _ Baghdad   A report by the Financial Supervision Bureau broke into the loopholes contained in contracts for the purchase and supply of electricity with different countries and companies, while the report indicated that there are clauses in the contracts that allow payment of money, whether receiving energy or not.

Iraq bought electricity for 3 billion dollars in 2019

According to the report of the Office of Financial Supervision, which opened the file for investment in electric power issued on September 24, 2020, “The cost of purchasing electricity from investment stations and neighboring countries during the year 2019 amounted to (3.337) billion dollars, equivalent to (3.945) trillion dinars, and this amount includes the fuel used to operate the stations. Investment ”.

Paying amounts without receiving energy

The report indicated that “the Ministry of Electricity has concluded (13) contracts to purchase energy from investors, including (7) contracts concluded in the manner (Take or Pay) for a period ranging from 15 to 25 years, which caused huge sums to be paid without receiving or Production of electrical energy.

This clause (Take or Pay) obliges the Ministry of Electricity to pay the money in the amount of (90% of the designed capacity and not the produced) even if the company is unable to produce as a result of force majeure circumstances or stopping production due to the low pressure of the supplied gas, the failure to bear the national grid or the fall of one of the lines Energy transmission, for example, the Basmajah Gas Station (MAS Holding Company), where 50 million dollars were paid for the undelivered energy, and the Rumaila station (Shamara Company) with 16 million dollars (within 7 months).

Most of the contracts stipulated that the investment companies ’measures should be the basis for calculating the energy produced, allowing companies the possibility of manipulating the measures.

Car company contract to supply Nineveh ... subject to a 6-fold high price

The report shows that “the Ministry of Electricity bore the bills for transporting fuel from the refineries to the stations, which were provided by the Car Company.

The energy cost of this company is considered the highest price, as it ranged between (193 to 264) dollars per megawatt hour, while the megawatt hour is purchased from the rest of the stations at a price ranging between (32 to 47) dollars, and the Ministry of Electricity was not committed to re-negotiating with the company to reduce the energy price, contrary to the decision of the Council of Ministers issued on 4/22/2019, and fuel prices were (6) times the energy purchase price, and the amount of fuel needed for operation has not been determined, which allowed the company Equipped with quantification.

Iranian Tafanir Company (Iranian Line)

The ministry has concluded several contracts since 2006 with the company, and the price of energy purchase is based on the monthly price of oil in the OPEC basket, so that the price is not less than (55) dollars in the event of a decrease in oil prices and not more than (100) dollars in the event of high prices and the cost of energy imported from the company is For the period from (2017 to 2019), at $ 1.441 billion.

The amount of energy purchase is sufficient to develop the stations and prevent imports ... and the Ministry "refuses"

According to the report, the Ministry ignored the study submitted by the Department of Energy Production in (2018) which showed that in the event that the Ministry provided an amount for the purchase of equipment and maintenance of national stations at a value of (4.435) billion dollars and transferred it to work from the simple cycle to the combined cycle, it will produce more energy than the imported energy.

And purchased from investment stations at a rate of (5806) megawatts in addition to reducing the consumption of fuel used in the stations and preserving the environment, noting that this amount is spent only once, while an amount of (3.337) billion dollars is disbursed annually, subject to increase in favor of investment stations and neighboring countries, knowing that it reached The Ministry's allocations during the year (2019) amount to (13.375) trillion dinars.

Refusing a cheap national contract and choosing a foreigner is 7 times more expensive!

The report indicated that the ministry also ignored the study submitted by one of its departments to convert the stations (Shatt al-Arab, Rumaila and Amara) to operate in the combined cycle at a cost of $ 1.325 billion within 15 years, and it contracted with investors for those stations for a period of 15 years at a value of (9,826). One billion dollars, 7 times more than the national effort.

Neglecting the Nasiriyah station and choosing to buy energy from the stations that are doubly expensive

The national thermal stations suffer from negligence and lack of maintenance, as some of them have not been maintained since 2002, such as the Nasiriyah Thermal Station, which needs $ 200 million to be rehabilitated according to the Ministry’s opinion. The cost of producing a megawatt hour from that station is $ 15, while the cost of buying it ranged. From investment terminals from (32 to 264) dollars.

The Ministry of Electricity bore the costs of fuel spent by companies and the electric energy bills used by companies within their production units, while the report also showed the decrease in the energy produced from the national effort during the last three years in exchange for increased purchases from investors.

The office recommended resorting to rehabilitating thermal stations and the national effort instead of contracting with investors for long periods as it leads to the depletion of state resources.

Number of Observations 218 Date of Addendum 10/30/2020   https://economy-news.net/content.php?id=22459

A Parliamentarian Reveals A Group Linked To One Of Al-Kazemi's Advisors That Controls The Decisions Of The Governors

Political| 02:17 - 10/30/2020   BAGHDAD - Mawazine News, Abd al-Amir al-Taiban, the deputy of the Al-Fateh Alliance, revealed, on Friday, a group linked to the advisors of Prime Minister Mustafa Al-Kazemi that controls the decisions of the governors.

Al-Taibyan said, via Twitter: “To the honorable Kazemi state, if you are serious about fighting corruption, know that the fever of the economic committees has spread to the governorates and that in every governorate there is a group or person who controls the decisions of the governors, and this person or group is linked to one of your advisors.” .

And he added, "If you know, then that is a calamity, and if you do not know it is a disaster." Ended 29 / A43

https://www.mawazin.net/Details.aspx?jimare=128379 

The Central Bank Helps Clean Up Al Rasheed Street

Banks  Economy News - Baghdad: Today, Thursday, the Central Bank of Iraq directed the Central Bank's cleaning services unit to carry out daily cleaning campaigns on Al-Rasheed Street.

A central bank press release received by "Al-Eqtisad News" said, "The Central Bank of Iraq has directed the Central Bank's cleaning services unit to conduct daily cleaning campaigns on Al-Rasheed Street as well as distributing containers in front of the stores and along the street in an initiative to help the Baghdad Municipality staff in view of the great duties they bear in And the importance of this street as an archaeological landmark and a commercial and economic center for the city of Baghdad. Number of observations 402   Date of addendum 10/29/2020    https://economy-news.net/content.php?id=22456

A New Plan Touches Job Opportunities For Iraqis Related To Foreign Workers And Expatriates

Money  and business  Economy News _ Baghdad  On Friday, a member of the Labor, Social Affairs, Immigration and Displaced Persons Committee, Hussein Arab, revealed the existence of new instructions to regulate the files of foreign labor and investment.

Arab said in a press statement, that "the files of foreign employment and investment fall within new instructions that the Labor Committee works with the Ministry of Labor and Social Affairs on them," noting that "these two files will contribute to reducing unemployment and providing job opportunities for young people."

He added that "there are many proposals related to the foreign employment file, as well as the employment file," noting that "there are controls and instructions related to this file at the Ministry of Labor and Social Affairs and the Parliamentary Labor Committee to limit the issue of employment and provide job opportunities for Iraqi youth for the next period."

And Arab added that "there is a new file that has become among the priorities of the Ministry of Labor and Social Affairs related to the work of companies developing the initiatives of the Central Bank of industrial cities and the Iraqi labor market."

He pointed out, "The Ministry of Labor has started this file, and there will be measures to provide job opportunities for all sectors in the Iraqi labor market."

Number of observations 65 Date of addendum 10/30/2020   https://economy-news.net/content.php?id=22465

Parliamentary Finance Reveals A Paragraph Of The Borrowing Law That Will Bankrupt The Government

Money  and business  Economy News _ Baghdad  The Parliamentary Finance Committee confirmed, on Friday, that it is studying the data on the fiscal deficit law, while indicating that it has addressed the government to withdraw the disability law if it is able to pay salaries.

A member of the committee, MP Abd al-Hadi al-Saadawi, said in a press statement, “The Finance Committee met with the staff of the Ministry of Finance, and asked them for all the data on the fiscal deficit law, because there is a difference between the numbers in the deficit law and the data in the committee,” pointing out that “the Finance Committee I discussed many matters related to the loan. ”

Al-Saadawi added that "the committee sent a letter and addressed the government regarding the payment of employees' salaries without the need for a loan in light of the statements of the government spokesman, in which he indicated that the government has solutions to pay the salaries of state employees." If it is able to pay employees' salaries with options other than borrowing.

He pointed out that "according to the figures in the borrowing law, it will lead to bankruptcy of the government in the future." Number of observations 479 Date of addendum 10/30/2020  

https://economy-news.net/content.php?id=22463

Parliamentary Finance (NINA): We Will Oblige The Government To Borrow Internally After Reducing The Deficit In The Public Budget

Friday 30, October 2020 10:59 | Political Views: 479  Baghdad / NINA / The Parliamentary Finance Committee confirmed that the House of Representatives directed to obligate the government to borrow internally after reducing the amount of the loan required to finance the deficit in the general budget.

A member of the committee, Representative Jamal Cougar, stated, in a statement to the Iraqi National News Agency / NINA /, that "the House of Representatives will make a series of amendments to the draft law on financing the financial deficit" borrowing "sent from the government, the first of which is to reduce the amount required for the loan and to be an internal borrowing from the Central Bank and banks Government exclusively. "

He added that "the Finance Committee is in the process of inquiring from government banks and the Board of Directors of the Central Bank about the possibility of borrowing and securing those sums or not," indicating that "the committee discussed with the Minister of Finance the details of the government loan and the real exchange doors for the required numbers."

The Presidency of the House of Representatives decided to host the Minister of Finance and the directors of customs, taxes and national retirement agencies to discuss the reform white paper and the fiscal deficit. The Parliamentary Finance Committee also recommended to the Presidency of the House of Representatives not to include the draft law on financing the financial deficit "borrowing" on the agenda of the parliament sessions, until the government responds about dispensing On the legislation of the law or not.

Last Wednesday, the Finance Committee sent an official letter to the Prime Minister to state his opinion of dispensing with the legislation of the financing deficit law, in response to the statement of the government spokesman, about the existence of solutions at the Ministry of Finance to provide cash liquidity to secure salaries in the event that the law was not voted on.    https://ninanews.com/Website/News/Details?Key=865909

Economic: Government Borrowing And A Rise In The Dollar Will Increase Commodity Prices

10:50 - 10/30/2020   Information / Private  , Economic expert Ammar Al-Jabri confirmed that the government's directive towards borrowing and its request to Parliament to vote on a law that allows it to obtain trillions of dinars will enter the country into mazes and exacerbate citizen crises due to the high dollar, which will raise the prices of goods and goods.

Al-Jabri said to "the information", that "the government's directive to borrow and its request to Parliament to vote on borrowing again, is unjustified and will lead to the explosion of the Iraqi street, especially the employee segment."

He added that " Iraq will enter into mazes and economic crises as a result of the ill-considered policies pursued by the current government, as it is imperative for it to take the opinion of experts and advisors specialized in the financial and economic field to overcome the crisis."

And that "the government's resort to borrowing will reduce the hard currency in Iraq, which will lead to an increase in its exchange rate against the dinar, and thus higher prices for all goods and goods, and therefore the citizen will be a victim of these policies." https://www.almaalomah.com/2020/10/30/502579/

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