Cabinet Adopts Key Decisions on Anti-Corruption, Million Land Plots, Private Universities

The Council of Ministers, chaired by Prime Minister Ali Al-Zaidi, convened Sunday evening, approving a comprehensive set of important decisions covering multiple sectors. Key among these were enhanced anti-corruption efforts, advancement of the million residential land plots project, and addressing the status of private universities and colleges. At the session's outset, Prime Minister Al-Zaidi affirmed that "the recent campaign against corruption represents a first phase, with the government determined to continue efforts to recover public funds and protect the Iraqi people's interests, without compromise." He noted, "The current situation cannot be tolerated; concern for Iraqis compels us to assert the presence of strong guardians over public funds, ensuring their optimal utilization." Al-Zaidi mandated oversight bodies to receive indicators regarding governmental or ministerial performance, aiming to uncover corruption or negligence. He clarified that Iraq has endured periods of wars, chaos, and terrorism, but the government's current path seeks to strengthen the state, monopolize force and weaponry, and prevent corrupt individuals from infiltrating state institutions to steal public money. He also addressed progress in preparing the upcoming year's budget, which will follow a "program-based budgeting" approach. He stated this budget would allocate additional funds to the electricity sector to contract for 25,000 megawatts this year, significantly improving the national grid's condition next year. Al-Zaidi emphasized continuous follow-up on the million residential land plots project, expecting its completion and results to emerge promptly. In this context, the Council of Ministers approved the "Million Residential Land Plots Initiative" as a national strategic project. This initiative aims to provide residential lands with necessary infrastructure in all governorates (excluding the Kurdistan Region) for distribution to eligible citizens, ensuring dignified housing. The Council also approved forming a High Committee for the initiative, chaired by the Prime Minister and comprising several ministers, heads of bodies, and relevant entities. This committee will set the general implementation policy, approve its strategic work plan and timeline, based on key operational axes: defining eligibility criteria and a database of beneficiaries, identifying and securing lands, developing an economic and financing model, and establishing legal frameworks. The committee is expected to hold regular meetings and submit recommendations to the Council. The Council further discussed several agenda items, making additional decisions. As part of financial reform, the Economic Ministerial Council's recommendation on tax accounting was approved. This included subjecting foreign oil companies operating in Iraq, including contractors, to Law No. (19 of 2010) imposing income tax. A fixed income tax of 35% will be levied on their total income generated in Iraq. The General Commission for Taxes will provide the Ministry of Oil with detailed lists of foreign companies, their branches, offices, and contractors who owe income taxes, additional amounts, or unpaid tax obligations, for collection. It was also decided to compel private universities, colleges, and institutes subject to tax accounting to settle the principal tax amount due for income tax and direct deduction. Beneficiaries will receive a 100% exemption from fines and additional amounts if the principal tax is paid and tax accounting is completed within a maximum of 4 working months from the Council's decision date. A 50% exemption will be granted to private educational institutions paying the principal tax and completing procedures during the four months following the initial period. The Council stressed that any taxpayer not completing procedures and payment within specified periods will not benefit from the exemption, facing legal fines and procedures. Furthermore, the Ministry of Higher Education and Scientific Research will take legal and administrative measures against non-compliant private institutions. In the energy sector, the Council exempted the preliminary principles agreement with ExxonMobil, and related contracts, from Council of Ministers Decision (48 of 2018). The Ministry of Oil will continue pursuing the arbitration case before international courts to safeguard the Iraqi state's financial rights, independently of the agreement's implementation. The Council also approved the Central Committee's recommendation for Basra Oil Company/Ministry of Oil regarding integrated field management and engineering, procurement, and construction contracts, awarded to Halliburton – Iraq Branch, for a 5-year term plus an optional 3 years, with payments based on actual work completed. Additionally, the Council approved awarding the Hamrin field development project contract to HKN Energy, initiating petroleum operations as specified by the Ministry of Oil. Regarding environmental affairs, the Council of Ministers authorized the Ministry of Environment, with its approval, the power to propose exceptions for certain facilities from environmental limits instructions for project establishment and monitoring their safe implementation (No. 3 of 2011), based on criteria adopted by the Ministry. In health matters, the Council approved allocating 30 billion Iraqi Dinars to the Ministry of Health to fund medicine contracts. Approval was also given for the Ministry of Planning to establish a component within the school construction project for contracts confirmed by the General Secretariat of the Council of Ministers. It authorized disbursing confirmed dues from the surplus amount in the 1000-school construction project, after deducting 15% of the amount, to be deposited into a special account with the Ministry of Finance. Finally, the Council voted to approve the issuance of the maritime collision prevention system, vetted by the State Council, based on Constitutional provisions and the Law of the Supreme Iraqi Maritime Authority (No. 18 of 2019).