Home
CONTROL RISKS: The government on 16 October suspended Sinan al-Shibibi, the governor of the Central Bank of Iraq (CBI), ostensibly in relation to an official investigation into sales of foreign currency. The government said that the Integrity Commission, which investigates corruption allegations, had recommended the suspension. The head of the Supreme Audit Board, Abdul-Basit Turki, has replaced Shibibi on a temporary basis.
The move is likely to be politically motivated and reflect Prime Minister Nuri al-Maliki's increasing attempts to wrest control over key institutions. The CBI is regarded at home and abroad as one of Iraq's few remaining impartial institutions, and Shibibi was widely respected for his independence. Maliki may be seeking greater control of the country's growing foreign currency reserves.
Maliki is likely to come under increasing domestic criticism for seeking to centralise power further and dominate the country politically. Such allegations are unlikely to faze the prime minister, who will point to the apparently legitimate use of the anti-corruption body in suspending Shibibi. However, state organs are often used for political reasons, thus compromising their independence.
Shibibi is being investigated alongside 16 other CBI officials. The investigations are likely to reflect pressure on Iraq to rein in the sale of US dollars, which has increased amid suspicion of smuggling into Syria and Iran – countries under international sanctions that have good relations with Iraq. This alleged activity has reflected badly on the government, and may explain its decision to target the central bank.
The remainder of Maliki's second full term, which will end in 2014, is likely to be characterised by moves that will be questioned as politically motivated. However, we do not expect the government to collapse under opposition pressure, and the prime minister is likely to serve out the remainder of his term. Nevertheless, mounting criticism of Maliki will render next year's provincial elections and the 2014 parliamentary elections highly competitive.
Sinan al-Shibibi
Shibibi was appointed CBI governor in 2003, having previously served for two decades as a senior economist at the UN Conference on Trade and Development. He has not been accused of any crime, and his lawyers claim that his suspension is politically motivated.
[You must be registered and logged in to see this link.]
The move is likely to be politically motivated and reflect Prime Minister Nuri al-Maliki's increasing attempts to wrest control over key institutions. The CBI is regarded at home and abroad as one of Iraq's few remaining impartial institutions, and Shibibi was widely respected for his independence. Maliki may be seeking greater control of the country's growing foreign currency reserves.
Maliki is likely to come under increasing domestic criticism for seeking to centralise power further and dominate the country politically. Such allegations are unlikely to faze the prime minister, who will point to the apparently legitimate use of the anti-corruption body in suspending Shibibi. However, state organs are often used for political reasons, thus compromising their independence.
Shibibi is being investigated alongside 16 other CBI officials. The investigations are likely to reflect pressure on Iraq to rein in the sale of US dollars, which has increased amid suspicion of smuggling into Syria and Iran – countries under international sanctions that have good relations with Iraq. This alleged activity has reflected badly on the government, and may explain its decision to target the central bank.
The remainder of Maliki's second full term, which will end in 2014, is likely to be characterised by moves that will be questioned as politically motivated. However, we do not expect the government to collapse under opposition pressure, and the prime minister is likely to serve out the remainder of his term. Nevertheless, mounting criticism of Maliki will render next year's provincial elections and the 2014 parliamentary elections highly competitive.
Sinan al-Shibibi
Shibibi was appointed CBI governor in 2003, having previously served for two decades as a senior economist at the UN Conference on Trade and Development. He has not been accused of any crime, and his lawyers claim that his suspension is politically motivated.
[You must be registered and logged in to see this link.]
