My Account: Civil Servants' Nightmare in Kurdistan Region & Iraq

Economy 08:06 PM - 2024-09-07

Employees in queue to get their salaries via My Account.

Although the distribution of the July salaries has begun for several days, some of the employees who receive their salaries through the 'My Account' project have not been able to receive their salaries due to technical problems in the cash machines (ATM); some of the ATMs did not have any money in them, while an economist emphasises that the 'My Account' project has failed and the salaried employees prefer the decision of the Iraqi Federal Court.

Shalaw Kosrat Rasul: Employees of Kurdistan Region are bearing the consequences

Shalaw Kosrat Rasul criticized the 'My Account' project on Facebook, saying: "The Kurdistan Regional Government's (KRG) insistence on paying salaries through the 'My Account' project has now escalated this issue to a challenging state, with employees bearing the consequences."

He further added: "Rather than suggesting the 'My Account' project and exacerbating tensions between Baghdad and the Kurdistan Region, the KRG can develop a more appropriate proposal and solution that not only meets the federal government's requirements but also serves the salaried workers of the Kurdistan Region."

Economist: ‘My Account’ is in the interest of several people

Jabar Goran, an expert in economics and finance, told PUKMEDIA: "My Account is a commercial project that benefits some people, but if the KRG prioritizes the welfare of the general public and employees, the salary should be disbursed through one of the state banks, as the Federal Court has previously ordered."

"State banks in the 'My Account' project are more reliable than private banks because they are backed by the central bank and are very difficult to go bankrupt, whereas private banks are expected to declare bankruptcy during times of crisis," Goran said.

“In addition, state banks are less subject to individual control and decision-making than private banks," he said.

‘My Account’ restricts employees

Dr. Lava Aras, a financial and economic expert, told PUKMEDIA: "Tawtin (nationalising) is superior to ‘My Account’ due to its higher level of transparency and its objective focus on the Iraqi government rather than the interests of individuals. As we are part of Iraq, Tawtin offers greater assurances to the salaried employees."

She added: "The KRG has been unable to effectively address the people's lack of trust in the government, particularly during the tenure of the ninth cabinet. Furthermore, it increased the level of mistrust and eroded preexisting confidence, particularly in financial matters. This has caused the salaried employees to turn to Tawtin and abandon ‘My Account’, resulting in its failure.

She further stated: "As experts, we do not endorse the ‘My Account’ project due to its imposition of illegal limits on employees, which oblige them to adhere to measures that are not of their choosing. ‘My Account’ contradicts the ruling of the Federal Court, which was the primary cause of the salary distribution delay from Baghdad."

A salaried employee: ‘My Account’ has failed

A salaried employee who subscribed to the ‘My Account’ project and was supposed to receive his July salary electronically informed PUKMEDIA: "The project has failed from the start. Despite multiple attempts in the last three days to receive my salary as per the system, I have not received my July salary for different reasons, whereas in previous months I received my salary without any issues."

In February 2024, Iraq's Supreme Federal Court ruled that the KRG should hand over all oil and non-oil revenues to Baghdad. The court also obligated the Iraqi federal government to pay the salaries of the KRG civil servants, and the KRG should cooperate with Baghdad in this regard. Iraq also decided to nationalise the distribution of civil servants' salaries in a process called 'Tawtin' that obliged employees to receive their salaries electronically.

'My Account' is the KRG's project to pay salaries of civil servants electronically. However, the project is highly rejected by both the federal government as well as the employees of the Kurdistan Region because it includes a number of Erbil's private banks.



PUKMEDIA