Update On The New Iraqi Commission For Public Integrity And Audit Board Laws (Finance)

Introduction

The Iraqi Parliament recently passed into law regulations (i) governing the Commission for Public Integrity (the CPI), titled the CPI Law; and (ii) the Audit Board titled the Audit Board Law. Previously, the operations of the CPI were governed by the Coalition Provisional Authority's Order No. 55, and the operations of the Audit Board was governed by law No. 6 (1990), both of which have now been explicitly repealed by the new legislation. The CPI Law and the Audit Board Law represent an overhaul of the legal framework relating to the agencies with responsibility for enforcing the law on bribery and corruption in Iraq1. The new laws clearly define the scope of the CPI and the Audit Board's respective authority, and indirectly touch on the scope of authority given to the Inspector Generals in effect limiting the investigative powers of the Inspector Generals, in favor of the CPI in instances of inter-agency overlap.

Iraqi law considers bribery, embezzlement, abuse of public office, unjust gain, and the financing of any such activities, as forms of corruption. All such acts are criminal offences with specific penalties imposed under the Iraqi Penal Code (1969), the Unlawful Gain Law (1958), and the Anti-Money Laundering Law (2004).

Contrary to common belief, existing Iraqi laws on bribery and corruption are extensive. However, in practice, enforcement of such laws has been inconsistent and piecemeal. In addition, Iraqi agencies empowered to fight corruption have historically shown limited initiative in promulgating policy directives that address the dealings and behavior of public officials. The CPI Law and the Audit Board Law aim, in part, to address this current state of inertia by creating a legislative framework with a clear delineation of authority and more robust enforcement tools.

Commission for Public Integrity

The CPI Law includes several significant changes in the scope of the CPI authority:

The CPI is declared an independent authority that reports directly to Parliament. The Head of the CPI, who was previously appointed and dismissed by the Prime Minister, is now considered to hold the rank of a minister, and is appointed by Parliament for a non-renewable five year term and can only be removed from office by a decision of Parliament. The new Head of the CPI will be selected in due course from a three-person pool to be prepared by Parliament's Legal and Integrity Commission. The same applies for the two deputy positions...