IAMB Press Release: Development Fund for Iraq

[blonde_minx]

[

THE CURRENCY NEWSHOUND - Just Hopin

b]* IAMB Press Release: Development Fund for Iraq

JULY 1ST, 2011 08:37 AM · POSTED IN NEWS (IRAQ & WORLD CURRENCY)

International Advisory and Monitoring Board of the Development Fund for Iraq

Press Release

June 30, 2011

Statement by the International Advisory and Monitoring Board of the Development

Fund for Iraq

The International Advisory and Monitoring Board (IAMB) of the Development Fund for Iraq

(DFI) met in Amman, Jordan on June 30, 2011 and issued the following statement:

“Over the past eight years the International Advisory and Monitoring Board (IAMB) has

overseen the operations of the Development Fund for Iraq (DFI), through which more than

$250 billion of Iraq’s oil export revenues have flowed. Today we conclude our work and are

honored to issue a final report and to hand over our responsibilities to the Iraqi Committee of

Financial Experts (COFE).

“The IAMB’s role has been one of audit oversight, both over the control and reporting of oil

export revenues, and the use of those revenues by the Iraqi spending ministries for the benefit

of the Iraqi people. The IAMB was established under the direction of the United Nations

Security Council and we welcome that body’s repeated endorsement of the significant role

played by the IAMB in helping to ensure that Iraq’s oil export revenues were being used in a

transparent and equitable way for the benefit of the people of Iraq.

“The IAMB has operated with full transparency: its meetings were open and the minutes

published, it approved international reputable auditors based on competitive bidding, and all

findings were published on its website (www.iamb.info), including 64 audit reports

containing over 3,200 pages of findings.

“The IAMB has been a driving force in strengthening controls over Iraq’s oil extraction and

export. The IAMB welcomes reports by COFE that the implementation of a full oil metering

system is under way and good progress has been made. The lack of an effective system of oil

metering had been consistently highlighted by the IAMB as the main obstacle to the

measurement and control over Iraq’s oil revenues.

“The IAMB has also been instrumental in strengthening internal controls at the Iraqi

spending ministries. Recent audits of the ministries by international accounting firms have

seen a welcome sharp decrease in negative findings and other weaknesses in controls at the

ministries. The IAMB has partnered in the follow up to these audits with the Iraqi Board of

Supreme Audit (BSA) and COFE, and acknowledges their significant contribution to these

efforts, which have laid a strong foundation for the continued rebuilding of capacity and

control at the ministries.

“The IAMB also played a key oversight role during the time of the Coalition Provisional

Authority (CPA). During this time, the IAMB launched investigations of sole-sourced

contracts using DFI funds and ensured transparency in DFI reporting, which was subject to

full independent audit by international accounting firms. The IAMB was the first

independent agency to highlight the absence of a comprehensive oil metering system and

encouraged the CPA to curtail smuggling activities while initiating an oil metering study.

Way forward

“Much has been achieved and many challenges remain. Looking ahead, further progress is

needed to achieve sound financial governance to help minimize the risks of mismanagement

and diversion of oil export revenues. COFE will need to remain vigilant and proactive to

maintain the momentum of reforms going forward. We wish them every success in their vital

responsibilities for continuing to safeguard Iraqi oil revenues for the benefit of the Iraqi

people.

Background

“IAMB Mandate: The IAMB mandate expires on June 30, 2011 after eight years. The

IAMB was created by the UN Security Council in 2003 as an independent and international

audit committee to oversee independent audits of Iraq’s oil export revenues and the

Development Fund for Iraq (DFI). The DFI received over $250 billion in crude oil revenues,

under US administration until June 2004, and thereafter under Iraqi administration. The DFI

audits focused on Iraqi oil export revenues and the use of those resources, including at the

spending ministries. The IAMB has been unique on the international stage—this was the first

time international organizations had come together as an audit oversight body. The IAMB

comprised members representing the executive heads of four international organizations—

the Arab Fund, International Monetary Fund, World Bank and United Nations—together

with the Government of Iraq. IAMB members worked together in a collaborative manner

over this period of time.

“Challenges: The IAMB faced many challenges in carrying out its work.

The security situation in Iraq hindered the IAMB’s work, including not being able to set

up a secretariat in Baghdad as originally envisaged, and our Iraqi colleagues and the

auditors carried out their work in difficult circumstances.

Legacy issues: The absence of a comprehensive oil metering system, due to the past

underinvestment in Iraqi oil infrastructure, hindered the transparent accounting for oil

revenues. Pre-existing barter contracts for oil resources, smuggling by the shipload in the

early days of the CPA and cash transactions outside the DFI were also noted.

Accountability challenges: The IAMB early on noted the widespread use of contracts

without competitive bidding. Early record-keeping and internal controls by the CPA were

inadequate. Outdated and ineffective procedures at Iraqi spending ministries impacted

accounting and reporting, which were further exacerbated by the security situation. It is

not possible to determine that all Iraqi oil resources during the period since IAMB

inception had been used for the benefit of the Iraqi people. However, audits of the DFI

concluded that known oil export proceeds were deposited in the DFI, with a few

exceptions.

Recommendations

“At the conclusion of its work the IAMB presents its recommendations to continue the gains

achieved by the IAMB and its Iraqi partners.

1. Ensure effective implementation of the metering installations, including through

completion of the Ministry of Oil’s plan through end-2011 and the further steps identified by

PricewaterhouseCoopers (PwC).

2. Continue to take concrete steps to implement and follow up on the remaining audit

findings and recommendations, including improving financial reporting and control systems

over oil export sales and in key Iraqi ministries, and ensuring completeness of Iraq’s oil

export accounts.

3. Codify COFE’s role and terms of reference in law.

4. Continue the independent oversight work of the IAMB by the Iraqi Committee of

Financial Experts and allow it and the BSA to continue their work with full transparency and

support of the government and parliament. In addition to the six monthly reporting to the

Council of Ministers, at least quarterly reports should be made available to the public on

COFEs work and on the operations of the successor account to the DFI.

5. Seek resolution with the US Government concerning the use of resources of the DFI

which might be in contradiction with UNSCR 1483, particularly remaining issues raised in

the July 2010 Special Inspector General for Iraq Reconstruction (SIGIR) audit report on

accounting for DFI funds.

6. Achieve Extractive Industry Transparency Initiative (EITI) compliant status through

the completion of the EITI validation quality assurance process. [/b]

[FishmanTx]

IAMB Audit Report of the DFI as of Dec 2010

Some interseting info!

[drox]

Thanks for finding this Fishman... I have taken my lumps for over a year trying to let people know there wasn't that much in the DFI at any given time. Even lost a couple close buddies on here. Unfortunately, the DFI is a flow-through auditing and protection mechanism and not a savings account. The majority of money flowing through it goes to the ministries and to pay for GOI services and infrastructure projects. It had $6 billion at the end of 2009 and it has $7.5 billion at the end of 2010.

The gurus have all been mistaken on this! All of them! We do not need the DFI fund for a revaluation of the Dinar. Hopefully people will start to realize that an RV will happen gradually through time in smaller chunks as Iraq improves itself and is able to sustain and support higher rates. This is a longer term play but has the potential for really nice returns. We just need them to figure out a LOP is not the answer. A LOP would limit their exchange rate future growth potential IMO. The 100,000 Dinar notes are a great indication they are postponing and hopefully eliminating a LOP. Saleh is a magician. He has you looking at one hand holding the top hat while the other is behind his back hiding the rabbit.

[FishmanTx]

Agreed. No one would be happy with that, though it does give the GOI an "easy out". If the would just RV, they could pay off their debt easily as well as cash us all out.

But...c'est la vie

I'm actually surprised no one else has found this until BlondeMinx posted that IAMB press release. These are non-disputable numbers for sure.....

P.S.

If you notice, it looks as if they've overdrawn the account a bit here and there . Notice the treasury bill purchases too.

Edited July 1, 2011 by FishmanTx

[Jmcc]

That was a very interesting read. Don't know how you found it, but thanks. Did notice the treasury bill thing.

[mrsonnyr]

Thanks for finding this Fishman... I have taken my lumps for over a year trying to let people know there wasn't that much in the DFI at any given time. Even lost a couple close buddies on here. Unfortunately, the DFI is a flow-through auditing and protection mechanism and not a savings account. The majority of money flowing through it goes to the ministries and to pay for GOI services and infrastructure projects. It had $6 billion at the end of 2009 and it has $7.5 billion at the end of 2010.

Drox, I'm not an expert on finance, but could there be something we're missing here? There have been

many articles of an extra $200 billion "showing up" right? How's this for a theory as I'm no expert.

Could it be possible that Dr Shabbibi, VERY intelligent and taught from the best, in how to manipulate money, ie. market multipliers, etc...

(Volcker/Greenspan--Even IF we don't like them) that, even though the audit shows those low numbers, that he in fact was able

to grow those funds to the $235 billion mark, through "outside payments" and keep them in the US accounts until the transfer

was made to the CBI? Keeping in mind that Dr Shabbibi wants as much return as possible on those funds to rebuild his country.

Seem very possible to me. Especially considering the amount of interest the fund earned in 2009 compared to the amount

showing in 2010 of interest earned on the "fund" The numbers below are in THOUSANDS USD (See top of each page in report)

Perhaps in 2010, he was "moving" funds with US help to be manipulated/exponentially grown in other accounts!

Notice how much LESS was earned interest in 2010.

Quote-- * This amount represents interest received on U.S. treasury bills upon maturity. The DFI

received interest from accounts held with FRBNY that are subject to investment in the U.S.

Treasury Bills according to FRBNY investment discretion. The following schedule shows the

details of interest received from U.S Treasury bills generated from each of the following DFI

accounts:

2010 2009

Interest from DFI main account 16,466 104,836

Interest from Foreign Military Sales account

(FMS) 3,525 6,730

Total 19,991 111,566 (Mine--In THOUSANDS...$111 MILLION In interest)

SORRY THE FORMATTING WON'T LINE UP PROPERLY--BOTTOM LINE...19,991 (thousands USD) in 2010 AND 111,566 (thousands USD) in 2009

Here's an example of an article which I'm referring to. WITH LINK

Friday, 01 July to July, 2011 17:32 .Received the Iraqi government, represented in a committee of financial experts, two hundred and fifty billion dollars of the proceeds of the sale of oil, which was subject to the supervision of an international body of the United Nations in the wake of the U.S. invasion of Iraq in two thousand and three and after delivery said the UN Security Council formally ended the task of a control and international advice, which was to oversee the Development Fund for Iraq for the proceeds of oil export to move its functions to the Iraqi government as of today as it appealed to the Security Council, the Iraqi government the obligation of justice in the distribution of oil revenues to serve the interests of the Iraqi people is noted that the Security Council had issued a decree establishing the Development Fund for Iraq May two thousand and three, to be deposited oil revenues in this fund under the supervision of UN...(THE REST OF THE ARTICLE HAS BEEN POSTED MANY TIMES)

http://www.albaghdadia.com/n/iraq-polotics/29321---25------.html

Anybody have more input???

Either way, these are positive moves in the right direction for our investment!

GooooooooooRV!!!

[quadraph0nic]

ehh i told myself i wasn't going to post here anymore but for this once i will make an exception as i think this issue is a bit important...

Development Fund for

Iraq

Results of Year End Audit

presentation to the

IAMB and COFE

27 April 2011

Paris - France

www.pwc.com

Private & Confidential

http://www.iamb.info/pdf/PwC%20presentation%20to%20April%202011%20IAMB%20meeting.PDF

page 11

"DFI does not maintain a

complete records of all frozen assets which it is entitled to receive.

Accordingly, completeness of those assets is not assured."

A general disclaimer or a reason to play stupid and with hold info from us, which to me is the same as LIE-ING!!

Okay lets assume DFI is like a checking account....

Is there a secret savings account to this thing? I mean seriously, all this stuffy talk and action by these organizations about how important this DFI is and for WHAT??? 10 billion dollars if that? Is that right?

yeah, and now i dont know what to think about these articles refferring to 250 billion...Someone or some organization is not telling the truth. PERIOD.

[drox]

mrsonnyr... hey there

It took me a bit to see what you were saying. First off... I am no expert when it comes to accounting so I welcome anyone with differing views because I could be wrong. With that said, I think the numbers you are referring to in interest are part of the explanation on the funds from the OFFP (The oil for food program) only. That is a much smaller subset of the oil export receipts of the DFI account. Numbers are "only" in the millions versus the export oil numbers which are in the Billions. It would appear that they purchased T-bills in the large DFI account as well as the smaller subset account which is partly the Oil for food program. So both program invested some of their balances in short term Tbills investments.

I believe that the total amount that has ever gone into the DFI is around $250 Billion since the inception in 2003. My personal belief is that their isn't any money floating around that Shabibi has in a separate account. I think certain news article translations just make it sound like there is $250 Billion sitting in there unfortunately. If they had large portions wouldn't it make sense to just pay off the full Kuwait debt of the remaining $20 Billion?

I will say that some alleged $17 billion has been missing for some time. At one time it was rumored to be over $40 Billion and some accounts had it lower around $6 Billion. I believe that money is being enjoyed by former corrupt ministers in interior, electricity, social services, and a couple others from a Swiss account somewhere. I also personally believe M is behind a lot of that. Notice how he is having a hard time appointing Ministers of Interior, Security, and Defense? Kinda makes you go hmmmmm? Be well and thanks.

[FishmanTx]

Thanks Quad! That's the one I wanted to find but overlooked it I guess. Lotta distractions from important things here at work LOL !

Whoops! Nope, weren't it. That's still only up to Dec 2010. Still has lots of good extra info though.....

Edited July 1, 2011 by FishmanTx

[keepmwlknfny]

ehh i told myself i wasn't going to post here anymore but for this once i will make an exception as i think this issue is a bit important...

Development Fund for

Iraq

Results of Year End Audit

presentation to the

IAMB and COFE

27 April 2011

Paris - France

www.pwc.com

Private & Confidential

http://www.iamb.info...B%20meeting.PDF

page 11

"DFI does not maintain a

complete records of all frozen assets which it is entitled to receive.

Accordingly, completeness of those assets is not assured."

A general disclaimer or a reason to play stupid and with hold info from us, which to me is the same as LIE-ING!!

Okay lets assume DFI is like a checking account....

Is there a secret savings account to this thing? I mean seriously, all this stuffy talk and action by these organizations about how important this DFI is and for WHAT??? 10 billion dollars if that? Is that right?

yeah, and now i dont know what to think about these articles refferring to 250 billion...Someone or some organization is not telling the truth. PERIOD.

No kidding....no wonder there is so much confusion of how much is really there and everyone has different numbers in their head!!! Hahahaha these freakin turds.......makes me question all the numbers now because they have supposed to of been transparent with the DFI and other things as well.....as time goes on the truth comes out....I surely hope those financial indicators they keep putting out are just as wrong!!!

Im starting to come back to the light!! Hahahaha all it takes is for the truth to come out......

I love this!! Iraq is starting to prove me wrong and I love every bit of it!!

Edited July 1, 2011 by keepmwlknfny

[design interrupted]

If Keepm's excited...I'm excited!