11/11/2010
Most UNSC members oppose Iraq's request to extend immunity to DFI -
UNITED NATIONS - A Western diplomat told reporters on Wednesday that most Council members oppose Iraq's request to extend the immunity of the Development Fund for Iraq (DFI) for one more year once its current mandate expires on December 31st of this year.
A Russian diplomat, however, said it will most likely happen, reflecting the Council's division on the issue.
The UN Controller Jun Yamazaki briefed the Council earlier in the day during an open meeting about the DFI, but would not pronounce himself for or against the request.
Most UNSC members oppose Iraq's request to extend immunity to DFI -
UNITED NATIONS - A Western diplomat told reporters on Wednesday that most Council members oppose Iraq's request to extend the immunity of the Development Fund for Iraq (DFI) for one more year once its current mandate expires on December 31st of this year.
A Russian diplomat, however, said it will most likely happen, reflecting the Council's division on the issue.
The UN Controller Jun Yamazaki briefed the Council earlier in the day during an open meeting about the DFI, but would not pronounce himself for or against the request.
"It is for the Council to assess the Government of Iraq's proposal and its implications," he told the Council.
Abdelbaset Turki Said, Chairman of the Iraqi Committee of Financial Experts (COFE), also addressed the Council expressing hope that the members would take into consideration progress Iraq made in implementing the plan that would succeed the DFI after its mandate expires on December 31st of this year.
The Iraqi request was made in a letter to the Council President, UK, by Foreign Minister Hoshyar Zebari who said Iraq "has not obtained the necessary" immunity from foreign banks to ensure the protection of Iraqi assets abroad.
"It (Iraq) therefore finds itself compelled to request a one-year extension with respect to the protection afforded to the Development Fund for Iraq. It looks to the Security Council to consider its request sympathetically, taking due account of the difficulties with which Iraq has to contend," Zebari said in his letter circulated today.
He cited as a difficulty the failure of the Iraqi political blocs to reach agreement on the formation of a new Government, nine months after the parliamentary elections took place earlier this year.
He said Iraq is "apprehensive" that commercial creditors may attempt to seize Iraqi funds and assets abroad once the immunity granted by the Security Council resolutions has been lifted.
"The Government of Iraq therefore looks to the international community to assist it in this matter and consider the possibility of including in a future Council resolution extending immunity for the Fund a provision to the effect that the Government of Iraq will not be liable for such claims after June 2011, " he added. Zebari's letter contained the Iraqi Government's third quarterly report regarding the action plan and timeline for the transition to successor arrangement for the DFI to ensure protection of Iraqi assets once the Fund's mandate expires later this year.
The Council asked Iraq last year in resolution 1905 to do so to ensure the timely and effective transition to a post-Development Fund mechanism by December 31 of this year.
On the status of the Iraqi debts owed to the Gulf Cooperation Council, Zebari said "the assistance of fraternal and friendly states may be needed to expedite the settlement of these debts, in the light of the steps taken by the Paris Club to resolve Iraqi debt." On the metering system, Zebari said the company Price Waterhouse has produced an evaluative report on the issue, noting that for the Basra oil port, for instance, work is continuing.
