Relationship of IAMB/COFE to the pending RV and the audits

[Enorrste]

Relationship of IAMB to COFE: can COFE audit the RV?

After posting the other day a discussion of UN Resolution 1905 and its implications for the RV I decided that I needed to

[Enorrste]

Next I decided to determine just what authority the IAMB has over the auditing of the RV. I went to the IAMB website and found its charter. Here is the link:

http://www.iamb.info/tor.htm

As I read the charter I saw that it dealt almost exclusively with funds coming from oil revenues. I was concerned that the IAMB might not have authority over auditing an RV and that my analysis of the “action plan” in Resolution 1905 might be flawed.

Then I found these two elements taken from the charter:

3. Powers and Responsibilities

E. Special Audits: The IAMB may decide, when warranted under international best auditing practices, that the External Auditor(s) or other independent public accountants (“special auditor(s)”) conduct special audits in all areas of the IAMB’s mandate and consistent with the objectives of resolution 1483, read with resolution 1546, resolution 1637, resolution 1723, resolution 1790, resolution 1859 and resolution 1905. After consulting with the Government of Iraq, the IAMB shall establish the terms of reference for the objectives, scope and approach of any such audits, which shall be conducted in accordance with International Standards on Auditing.

7. Administrative Coordinator/Secretariat

E. The IAMB shall continue to cooperate during 2010 with the Committee of Financial Experts, established by the Council of Ministers of the Government of Iraq on October 19, 2006, or such other body that might replace that committee or substitute it, and work towards a full transition of its mandate to this committee by the end of 2010.

In these two subsections of the IAMB charter I found what I wanted to find, and more. From the first subsection I found that indeed the IAMB has the authority to audit just about whatever it wants to audit as part of its mandate from UN Resolution 1905.

Then in the second subsection I found that it can do so through its cooperation with COFE, which was created in October of 2006 as an auditing arm of the IAMB.

But then I found something that truly surprised me: it turns out that COFE was established by the Government of Iraq and NOT by the IAMB.

What does this mean? It means that the fox is guarding the hen house! We see here that COFE was created by the GOI and is going to perform an audit on the GOI, or nearly so.

Actually the RV will be undertaken by the CBI which, like our own Federal Reserve, is an autonomous organization that is technically outside of the GOI. So in some sense there is an “arms length” transaction in which the two are not connected.

Still, I found it interesting that the UN would appoint a GOI founded organization to audit the RV instead of an “external” organization from elsewhere in the UN.

What this tells us is that the relationship between the UN and Maliki is actually quite cordial and that the UN is cooperating fully with Maliki’s intentions. Resolution 1905 was written at his request and gave him what he wanted; in addition by having COFE do the auditing of the RV it could be surmised that the audit will be done under the “eyes” of Maliki as well.

So we see that the entire process is really being controlled by Maliki. Earlier we had shown that Shabbibi is a pawn of Maliki and that he will do what he is told. Even if this were not provable it is clearly the case since it is from his office at the CBI that the “action plan” has come, and the details of it have been in the works since 2005, as I have shown on another post.

Finally, since the UN has been in control of Iraq since 2003, we may rest assured that it knows everything that is going on in Iraq, including the plan for the revaluation of the IQD. Therefore we can safely conclude that the UN, Maliki, and Shabbibi are all working from the same playbook.

With that being said it is my considered opinion that there is now nothing holding back the revaluation of the IQD and that we should see it forthwith.

Steve

[Lisa]

Again, EXCELLENT analysis! Thank you so much for all you do!!

[Guest marketralley]

Thanks for you time doing this.

[mrref]

Thanks Steve, at least we can depend on you and your research. Instead of all these rumors and speculations.......

[braywilkins]

E... You are the man.

[Pearl Anderson]

Thank you for such clear, informative and comprehensive explanations.

[Ready1]

Great stuff, well put!

[bobstick]

Yes yes yes yes yes ................... but WHEN ????????????

[jmakTN]

Steve, you obviously know much more about this topic than i, since you have researched the facts involved. However, confusing to me is this: Isn't it a pretty big assumption that the "scope of work" part is referring to a potential revalue, or the "action plan"? I guess i'm having a hard time correlating the two since they don't directly state anything about the revalue of currency itself; but its foolish to think they would directly state such a thing. I'm trying to stay neutral about it without getting to biase. I'm currently in a managerial accounting class in my MBA program, my professor is a multinational corporate accountant and has worked with the kind of info you presented here. I've mentioned the dinar to her a couple times and recently wrote a paper on "managing currency risk" for my international business course. Anyways, i'm going to present her with this info you posted here and see if she can shed some light on the potential ramifications, and would like to relay it to you, since its better to have several minds working on it. I don't know your professional background, but thought you would be interested in furthering your research in such a way. I'll just post it in this thread after consulting with her to see what you think.

joseph