Warka Replies to Courts: Not Smuggling Money Abroad

[Rayzur]

The bank's recourse to the courts to pay «guardianship» Central Bank denies the accusation «Warka» smuggling money abroad

2012-03-11بغداد ـ عبد اللطيف هادي 11.03.2012 Baghdad, Abdul Latif Hadi

Denied the Iraqi Central Bank's statements dealt with some of the media, yesterday, that he accused the Warka Bank of smuggling money abroad, stressing that he is not related to the Central Bank of the details outside the scope of his powers as a regulator of banks, and that the foot-dragging on the bank in question called up a resolution to impose trusteeship on it.

This was announced by Vice-province of Oman Central Bank of Iraq d. The appearance of Mohammed Saleh, said that the central bank to deal with all banks equally, was not accused of any bank operating inside Iraq not previously or currently being involved operations of smuggling and money laundering, or anything that falls outside the scope of our mandate, we view art professional deal in accordance with regulations, laws and clauses acts of interfering in the bank and within a specific range to correct some of the tracks or acts of these banks in case we found Mtlkoh in their work, and certainly it would be within the framework of protection money to Iraqi citizens.

He accused the benefit of some of those in their interest to discredit the Warka Bank or any bank competitor to them, and always try to use the policy of confusion and fabrication Tsrhat to official bodies, and we as a central bank did not declare or announce any information except the imposition of trusteeship for reasons also have been mentioned regarding Ptlku acts of Warka.

Meanwhile decided Warka Bank Ahli filed a lawsuit against the Central Bank of Iraq and accused him of issuing a decision of the Trusteeship illegally, as expressed Finance Minister Rafie al-Issawi reservation on the decision of the bank, which will stand a stumbling block to foreign investment, while considering the economic parliamentary subject to host central bank officials to indicate the reasons for the trusteeship.

Prior to the Iraqi Central Bank that the development of Warka, which is one of the largest financial institutions in the country, under the tutelage of full resolution of his administration and appointed replacements for them from the central staff.

An official source in the Board of Directors of the Warka Bank explained that his bank has decided to sue in the appropriate courts demanded the cancellation of the decision of the guardianship of the Central Bank on us and also made clear our doubts convening of the Board of Directors of the Bank, especially as he announced that his decision came after an extraordinary meeting was at a late hour of the night, and here We have asked the court to make sure this actually in advance of the meeting and the minutes and have been calling members of the legal form and in accordance with the controls.

He continued that we Manfezon claim against the Central Bank of compensation for damage caused by us, and since 2009 has prevented the Bank from participating in the auction currency and it has nothing to do the position of the bank, and also decided to close 50 branch without justification.

Iraqi government's position was Dhaha through the Economic Commission headed by Deputy Prime Minister Ruz Nuri Shaways, who announced that the government is supportive of the development of the private sector of all kinds, especially the private banks that decide coverage system granting bank guarantees for foreign companies operating in Iraq for amounts less than $ 4 million. There are a number of recommendations and decisions that are in favor of the private sector will be adopted government.

Finance Minister Rafie al-Issawi said at a news conference in Amman and Iraq after the end of the meetings of the World Bank to discuss the budget of 2012, without counting the legal guardianship decision, accusing the central bank to exercise the powers are not right.

He said such a decision, according to the laws should begin to lift a recommendation or proposal to the Minister of Finance recommendation and after the failure of other solutions, then we have such as the Ministry of financial re-answer the central bank either the decision of guardianship or other solutions, they returned it that would negatively affect the reality of investment and will fear in the hearts of investors foreigners.

For its part, indicated by the Economic Commission parliamentary Nora Albjara for the Iraqi List, that its relay details of the central bank's decision has been discussed many issues related to the work of private banks, and its right as a supervisor and concerned with economic affairs Iraqi hosting or call any official Iraqi to show it.

She Albjara «that such decisions do not serve the interests of the development of Iraqi economy, particularly at the present time, we desperately need now is to attract investors from abroad, and this will not happen if they found that the Iraqi private sector is still at the mercy of Arzach government decision«.

http://www.newsabah.com/

More on Warka from the Newspaper the day before:

Deputy Governor of Central Bank of Iraq the appearance of Mohammed Saleh, said that custody of the Warka Bank was due to the reluctance of the bank in the payment of its obligations, indicating that there are no special reasons for the trusteeship.

He said that the «Iraqi Central Bank has set up a committee of the Trust on the Warka Bank and the National, which will continue its work for up to the end of this month to assess the work and ensure that you can restore it to its role in the banking business in order to make recommendations to the Ministry of Finance to help him to return to work or not».

He added: «We can not deny that the Warka Bank was from the banks advanced in their work through technology, professional development, where he works, but the introduction of the bank for himself in projects and contracts is calculated led to defeat repeated and that made him unable to repay credits or deposits from the government or which are for commercial entities other ».

He «got many complaints from government agencies and private companies on the bank because the bank to fulfill its obligations because of the deficit, which has forced the central bank to put on the Guardianship Bank».

Denied the benefit of «the existence of any particularly motivated or directed from certain destinations in the custody of the bank», saying «that of the duties of the central bank to maintain the stability of the banking business and follow-up in all the banks in order to maintain economic stability and investor confidence, banking transactions and this is the only reason to pay Central Bank to take this action ».

And was the Central Bank of may announced put the Warka Bank under the trusteeship system following the failure of the talks with the Bank of Standard Chartered, which began in April 2011 to buy a stake in it, stressing that it will be set a new administration soon.

Warka Bank and denied in a statement quoted by media reports that his bank was bankrupt »because the bank is supported by the Central Bank of Iraq, accusing some competitors» to launch a campaign to discredit him », according to the statement.

For its part, revealed the Finance Committee in the House of Representatives it will call for the Iraqi Central Bank Governor Sinan Shabibi to discuss the issue of Warka Bank, as revealed by the presence of unconfirmed refers to smuggling capital of the Warka Bank out of the country following the flight of the founders of the bank.

A member of the Committee Secretary Hadi, told the Kurdish news agency that «the Finance Committee will summon the Governor of Central Bank of Iraq to discuss the issue of Warka Bank», indicating that «there is a problem in the Warka Bank for more than two years and there were instruments back because of the lack of balance Mali».

A member of the Finance Committee for «there are unconfirmed reports indicate that the capital of the bank have been smuggled abroad, and the founders of the bank also left Iraq» indicating that «there are a lot of claims made by citizens to the courts against the bank», and there is controversy in ministries at the letters of guarantee provided by the bank ».

And sought the Warka Bank, according to economic reports to come out of his financial entry through the Bembagesat with the British bank Standard Chartered to sell a share of the shares, but the talks have reached a dead end.

The decision to place custody of the Warka Bank in the Central time enter the new mechanism requiring the withdrawal of foreign currency on the basis of the importance of development projects in the country, after news spread of the breadth of the phenomenon of smuggling hard currency, especially to Iran, facing international sanctions. The central bank, said that the imposition of guardianship and the Warka Bank came to save him from some of the problems experienced by noting that the current interim administration of the bank going his works, considered as the House of Representatives Committee on Finance to hold the central important step to improve and reality

[zigmeister]

And the plot thickens some more.....thanks for the post.

[coolbeans]

"The decision to place custody of the Warka Bank in the Central time enter the new mechanism requiring the withdrawal of foreign currency on the basis of the importance of development projects in the country, after news spread of the breadth of the phenomenon of smuggling hard currency, especially to Iran"

Wow...smuggling and money laundering??

Wonder what will happen if they find that money was smuggled to Iran?

Edited March 11, 2012 by coolbeans

[DinarBot]

"The decision to place custody of the Warka Bank in the Central time enter the new mechanism requiring the withdrawal of foreign currency on the basis of the importance of development projects in the country, after news spread of the breadth of the phenomenon of smuggling hard currency, especially to Iran"

Wow...smuggling and money laundering??

Wonder what will happen if they find that money was smuggled to Iran?

Me thinks they did.

[Rayzur]

I think this also gets at the whole foundation of private versus government banking discussed in every IMF and Development plan....I'm guessing the way they handle this one, will be a good indicator as to how they plan to handle and develop all private banking enterprises in Iraq...... Which I think has much to do with their whole financial sector and developing/responding to their economic interests

[zigmeister]

pandoras box....maybe.