July 28, 2005

Today the UNCC disbursed another $199m of Iraqi money in compensation payments. Kuwait recieved $152m, Saudi $5m, Iran $4m and Jordan $3m. $400,000 even went to US corporations. This raises the total Iraq has paid since the fall of Saddam to $2.4bn. This compares with at most $40m which has been dispursed so far to residents of Fallujah, leveled by US Marines in April and November 2004.

July 26, 2005

Today Iraq announced the settlement terms it is offering for Saddam-era commercial debt prior to August 1990. It estimates that the total of this category may be $20bn, or which about 85% will be eligible for settlement.

For creditors with <$35m Iraq is offering a cash buy back at 10.25% of the Net Present Value.

For creditors with >$35m Iraq is offering a debt-for-debt exchange similar to the Paris Club agreement (20% of NPV, interest acrruing at LIBOR+0.5%) with partial interest payment beginning in 2008 and principle repayment beginning July 2011 and maturing January 2028. See Eyidro for original document.

Medical humanitarian organisation Medact today reports on the continuing serious problems with the health situtation in Iraq. It highlights the Paris Club agreement, linked to IMF economic conditions, and the ongoing reperations payments as significant factors hampering the recovery of Iraq's health care system. It instructs supporters to lobby the British government on these issues in line with Jubilee Iraq's demands.

July 24, 2005

Leading Iraqi poet and activist Haifa Zanaga writes in Al-Quds Al-Arabi (in arabic) about the VITW & Jubilee Iraq fast against UNCC reparations in Geneva a few weeks ago.

July 18, 2005

The World Bank announced that up to $500m in IDA soft loans will be made available over the next two years to finance development projects in priority sectors. The first WB loans to Iraq since 1973 are part of the $3bn of loans pledged at Madrid in October 2003. The WB says the new loans will be used to scale up activities in sectors where operations financed by the WB managed Iraq Trust Fund demonstrate progress in implementation and are delivering results.

Jubilee Iraq does not have any problems with this loan providing:
(1) The vast majorty of the money is spent on Iraqi goods & services;
(2) The projects must be designed to the benefit the Iraqi people;
(3) The Iraqi government must make the spending decisions;
(4) The loans must not be used to pressure Iraq, formally or informally, to make any particular economic policy decisions.

July 15, 2005

In January UN internal audits revealed that the UNCC may have overstated reparation awards by $5bn. Today Iraq's Deputy UN ambassador Fesial al-Istrabadi told the AP that the the Volker Investigation into Oil-For-Food believes that some of the allegations were legitimate, particularly in how the commission handled currency exchange rates with the Iraqi dinar. "There appear to have been some irregularities that are at the very least gross mismanagement at the level of currency exchange." The executive director of the investigation, Reid Morden, refused to confirm al-Istrabadi's claim but said investigators had long wanted to scrutinize the U.N. Compensation Commission: "It's a program which so far has submitted itself to very little in the way of transparency."

The Volcker committee's first interim report, released in February, described a turf war between the OIOS, the internal UN watchdog and the commission, which objected to the watchdog's audits and repeatedly rejected its findings. For example, the OIOS said that the UNCC should pay claims according to the exchange rate at that time of payment. But the UNCC had decided that payments should be made based on the exchange rate from the time when the losses occurred. Al-Istrabadi rejected the argument that managing the exchange rates might prove difficult. "These are supposed to be sophisticated international operators with real responsibility over real people. If they weren't up to the task, they should have said so." He said Iraq will demand the return of the money if mismanagement and corruption were proven. UN spokeswoman Marie Okabe said there will be no comment on the latest allegations until the final Volcker report comes out. It is expected in September.

The Kuwaiti government had originally sought from the UNCC to help make up for the costs of excess hospitalizations and deaths during the occupation. After examining the recent Harvard report, Kuwait withdrew that financial claim and amended its long-pending public-health claims. "We found that the evidence wasn’t as compelling as they’d thought originally, and the government of Kuwait told us they didn’t want to file silly claims," said lead researcher John Evans. He added that Kuwait is now seeking compensation from the UNCC for premature deaths from smoke exposure, medical treatment and disability costs resulting from PTSD, and medical treatment costs for mine and ordnance victims.

July 14, 2005

Inter Press Service reports on a visit to Kerbala. Hussein Al Abrahemy of Iraqi Human Rights Watch (incidently a supporter of Jubilee Iraq) explained that people had unsuccessfully requested many times that the US military retrieve the cluster bombs and Daisy Cutters components that are still being found all over the city. Children thought the yellow devices were toys. So on April 3, a committee headed by local volunteer Ali Hamza finally decided to dispose of the ordnance themselves. Attempting to clear a schoolyard, Ali Hamza was killed. The Army promised compensation, but the family has received nothing. Responding to US inaction, a Community of Victim's Kin was founded, demanding that 5% of Iraq's oil income be distributed among victims' families. It is inhuman that Iraqi victims of war and occupation recieve nothing, while Kuwait and other wealthy countries take 5% in compensation for Saddam's invasion which most Iraqis opposed.

July 12, 2005

The Arab Inter-Parliamentary Union resolved today to write off $805k of debt owed by Iraq. Kuwait's delegate to the APU, AbdulWahab Al-Haroun MP said that the decision to scrap Iraq's debt to APU was reached "in appreciation of Iraq's current circumstances, specifically in view of its inability to repay its subscription fees to APU, which have accumulated year after year." He called on other Arab countries to do the same and scrap Iraq's debts and help the Iraqis in any way they could. Jubilee Iraq hopes that his own country will follow suit soon.

July 08, 2005

The G8, whose members form the core of the Paris Club, called "on other creditors to provide debt relief on generous terms comparable to or even better than those agreed by the members of the Paris Club in November 2004." Of course at the same time they insisted that "the World Bank and the International Monetary Fund establish an effective presence in Iraq, as soon as possible."

Charging that the United Nations is treating various Iraqi accounts as a source of "easy money," Iraq's U.N. Ambassador Samir Sumaidaie said his country is trying to recover money deposited in various UN-administered accounts and reduce payments to others. There are scores of Security Council resolutions pertaining to the collection and use of Iraq's oil proceeds, and only the council can alter those mandates. last year the council readily agreed - over Baghdad's protests - to spend $30m to fund a UN-authorized inquiry into possible fraud and mismanagement of the oil-for-food program. This week, Independent Inquiry Committee Chairman Paul Volcker is expected to ask the council for another $3-4m, a request that will likely be granted over Iraq's complaints. Money in the account has also been earmarked to settle damages and costs related to the tragic bombing of the UN compound in the Canal Hotel two years ago. Iraqi UN Ambassador Samir Sumaidae says: "Unfortunately, over the past decade or so, since those compensation schemes were put in place, huge sums have been paid without regard to Iraqi interest and without scrutiny. It was treated like a slush fund, frankly, and a lot of dubious private-sector entrepreneurs thought this was a good way to get on the gravy train. We have tried to stop this. We are making progress, but so far ... the claims keep coming." Although Iraq no longer pays into the UMMOVIC account, more than $345 million had accumulated by this year. Even after returned $200 million to the Development Fund for Iraq last month, there is still enough in the UNMOVIC account to keep the program going for another decade. "We have been lobbying to close the files and be rid of it," said Mr. Sumaidaie. "We just don't see any justification for such a large bureaucracy to be supported in perpetuity on Iraqi money to do absolutely nothing. They go to courses and keep looking at photos. The reality has moved on."

July 07, 2005

In Defence Minister Saadun al-Dulaimi's historic meeting with his Iranian counterpart Ali Shamkhani he said: "I have come to Iran to ask forgiveness for what Saddam Hussein has done." However it is unclear whether Iran is yet ready to forgive Iraqis for Saddam's actions, as no statement was made on the lingering Iranian claim for reparations, which the two ministers said would be discussed at a later date.

July 06, 2005

The European Commissioner for External Relations, Benita Ferrero-Waldner, speaking during a European Parliament debate on Iraq today, urged the international community to do more to reduce Iraq's debt.

The Arab League has just signed an agreement with Iraq on over a decade of dues unpaid by Saddam. The arrangement was first approved by Arab foreign ministers at a meeting in March 2004, when they requested the Arab League handle Iraqi arrears to Pan-Arab organizations. 70% of the arrears will be cancelled, with the remaining 30% being paid off in equal installments for a period of 10 years beginning in 2007. Iraq annual dues are currently $3.5m out of the League's total budget of $35m, and it has offered to pay 50% this year.

July 05, 2005

In a debate on Saddam's odious debts and reparations in the British Parliament, Harry Cohen MP made a powerful argument for economic justice for Iraq. His full speach is on Hansard, here are a few extracts:

"Set against this priority to pay off Saddam’s debts is Iraq’s social crisis of enormous extent – the doubling of child malnutrition, a deterioration of health and education provision and, indeed, of the country’s vital infrastructure. This debt hampers (too kind a word) any Iraqi administration’s ability to tackle these problems. I would add that they add fuel to the poor security situation and leave a burning resentment amongst Iraqis ill-treated and robbed of their resources."

"The IMF is imposing conditions that are draconian and bullying, and neglectful of the social consequences from them. These conditions include privatisation and foreign ownership, the end of food rations and fuel subsidies and restricting salaries and pensions. What a time to do this when unemployment is so high, malnutrition rising, fuel shortages considerable and very many Iraqi families increasingly vulnerable. But the policy is even worse. It takes away control over the economic situation from any democratically-elected Iraqi leadership. The Financial Times wrote “Now from the very first day that the new Iraqi parliament sits it will find virtually every important economic decision predetermined by the coterie of rich countries that runs the IMF.”

"The debt and reparations still to be paid after The Paris Club decision are not acceptable for the Iraqi people plunging to poverty and hardship; they’re not acceptable for Iraqi democracy and freedom; and they’re not acceptable by not giving a post-Saddam administration a clean slate and a clean start. The Minister, the G8 leaders, Paris Club members and all Creditor nations need to think again about the Paris Club formula. It’s simply not good enough by a long way. There needs to be a 100% write off of all of Saddam’s debt, no more Reparations, no more damaging conditionality, and proper funding for reconstruction that involves, benefits and employs Iraqis. Think again."

Harvard School of Public Health (HSPH) has made public the findings of Phase I of their investigation of the public health impacts on Kuwaiti Nationals of Saddam's 1990 invasion and seven-month occupation. Three years ago HSPH was retained by Kuwait to determine whether there were substantial public health impacts of Saddam's 1990 invasion and occupation of Kuwait and, if so, to estimate the magnitude of such impacts, assess their causes, and determing approaches for detection and treatment of affected individuals. The entire project is being funded from Iraqi money through the UNCC.

Dr. John Evans of HSPH says: "It is well established that individuals may recover compensation for the loss of life, limb, or pain and suffering. But as our research shows, the most substantial public health impacts often result from small increases in individual risks spread across large populations. In these cases, the affected individuals may not be identifiable and, as a result, these impacts may be ignored. In their evaluation of Kuwait's claims, the UNCC has the opportunity to recognize and rectify this oversight -- making clear that public health impacts are fully compensable."

Jubilee Iraq sympathises with Kuwait on the impact of Saddam's occupation on its public health, however as ever we inist that this is not something which the impoverished Iraqi people should pay for. It would be interesting to apply Dr. Evans methodology to Iraq's public health.

Speaking at a round table in Sofia, Iraqi Ambassador Hayder al-Barrak pointed out that the present government of his country was not to blame for the faults and crimes committed by the ousted regime of Saddam Hussein. He asked Bulgaria to waive the $1.7bn debt accumulated by Saddam.