The Federal Audit Office takes a package of measures to implement the provisions of the Federal Supreme Court's ruling on the unconstitutionality of the oil and gas law in the Kurdistan Region

The Federal Audit Office - Industrial Activity Audit Department has taken a set of measures - informing all concerned state institutions and public opinion - in order to implement the judgment of the Federal Supreme Court No. (59 / Federal / 2012 and its units 110 / Federal / 2019) on 15/2/2022, according to which it was decided to rule as follows:

1- The unconstitutionality of the Oil and Gas Law in the Kurdistan Region No. (22) of 2007 and its repeal for violating the provisions of Articles (110, 11, 112, 115, 121 and 130) of the Constitution of the Republic of Iraq for the year 2005.

2-  Oblige the Kurdistan Regional Government to hand over all oil production from the region's oil fields.

3-  Follow up the invalidity of oil contracts concluded by the Kurdistan Regional Government.

4-  Oblige the Kurdistan Regional Government to enable the Iraqi Ministry of Oil and the Federal Financial Supervision Bureau to review all oil contracts concluded with the Regional Government regarding the export of oil and gas and the sale of oil and gas in order to audit them and determine the financial rights incurred by the Regional Government as a result.

5-  The share of the Kurdistan region of the general budget is determined in a way that ensures that the rights of the citizens of the provinces of the region are delivered from the federal general budget and not delayed. 

These procedures were briefly referred to in the letter of the National Audit Office - Industrial Activity Audit Department No. (11/28/2600) on 30/1/2023 addressed to the Federal Supreme Court - Office of the President of the Court, noting that the Bureau continues to follow up on what was stated in the executive axis of the ministerial curriculum / October / 2022, as far as coordination between the federal government and the Kurdistan Regional Government is concerned with the files and decisions related to the region according to the details referred to in the book, which lies in the following:

1- Diwani Order No. (7017) on 30/3/2022, according to which a committee was formed to audit oil contracts concluded by the Kurdistan Region.

2-Diwan letter No. (1/2/13100) on 14/6/2022 addressed to the General Secretariat of the Council of Ministers - Kurdistan Regional Representation, for the purposes of enabling the Bureau to review oil contracts concluded with the Kurdistan Regional Government.

3-The Diwan letter No. (1/1/15/15826) dated 26/7/2022 addressed to the Ministry of Oil for the purpose of providing the NAO with a statement that includes the oil contracts concluded by the Kurdistan Region, so that an action plan and an audit program can be prepared in coordination with the aforementioned ministry.

4-Diwan letter No. (11/28/16935) on 11/8/2022 addressed to the Prime Minister's Office, explaining the approach of the Ministry of Oil about the formation of a specialized committee in the Bureau to audit the oil contracts concluded by the region.

5- The answer of the Ministry of Oil / Legal Department in its letters numbered (29767) and (22803) on 13/10 and 11/8/2022, to the books of the Diwan numbered (19903) and (15826) on 13/9/2022 and 26/7/2021 respectively, indicating that the region refused to deliver any oil contracts and any data related to the subject The Ministry of Oil also indicated that the paragraph contained in the decision regarding (obliging the Kurdistan Regional Government to enable the Iraqi Ministry of Oil and the Federal Financial Supervision Bureau to review all oil contracts concluded with the Kurdistan Regional Government regarding the export and sale of oil and gas for the purpose of auditing it and determining the financial rights owed by the Kurdistan Regional Government as a result of it, and that the region's share of the federal general budget is determined and not delayed after all the decisions of this decision are made by the Kurdistan Regional Government and the Federal Financial Supervision Bureau are not implemented until the date of the aforementioned letter of the Ministry of Oil.

6- The letter of the Bureau No. (21513) on 4/10/2022 addressed to each of (the General Secretariat of the Council of Ministers / Representative of the Kurdistan Region, the Federal Supreme Court, the Ministry of Finance, the Ministry of Oil, the Financial Audit Bureau in the Kurdistan Region), including that this Bureau is waiting for the preparation of priorities and audit requirements to start the task or provide the Bureau with a statement of these contracts and copies of them so that the Bureau can prepare for the implementation of the decision of the Federal Supreme Court, with the offer that the Bureau was not provided with any priorities from any A party regarding the subject until the date of preparation of this letter. 

We show a photocopy of the following:

1-Judgment issued by the Federal Supreme Court No. 59 / Federal / 2012 and its units 110 / Federal / 2019 on 15/2/2022, related to the unconstitutionality of the Oil and Gas Law in the Kurdistan Region No. (22) of 2007 and its cancellation for violating the provisions of Articles (110, 112, 115, 121 and 130) of the Constitution of the Republic of Iraq for the year 2005.

2- Letter of the National Audit Office - Industrial Activity Audit Department No. (11/28/2600) on 30/1/2023 addressed to the Federal Supreme Court - Office of the President of the Court.