The Cabinet holds the 52nd regular session, decisions included

INA - BAGHDAD

The Cabinet held the 52nd regular session chaired by PM Muhammed S. Al-Sudani chaired on Tuesday.

During the session, they discussed the general situation in the country along with several service, economic, and social files, as well as deliberation on topics listed in the agenda and making the necessary decisions, according to a statement by the PM's Media Office - received by the Iraqi News Agency - INA.

The session reviewed a report from the Federal Board of Supreme Audit, submitted to the Prime Minister as part of ongoing efforts to combat corruption and assess the performance of ministries. The report outlined ministries that had improved their performance between 2023 and 2024, those whose performance had declined, and those that remained stagnant. The Prime Minister directed ministries to implement the report’s recommendations and observations and investigate the causes behind declining or stagnant performance, while commended ministries that showed positive progress in performance indicators. He emphasized the necessity of holding accountable those who neglect their responsibilities in combating corruption, as well as addressing entities that fail to carry out their duties concerning violations and legal measures to address corruption-related cases.

To celebrate Christmas, the Cabinet has declared tomorrow, Wednesday, December 25, 2024, a public holiday for all Iraqis. May this occasion bring prosperity, security, and stability to Iraq.

In appreciation of the Ministry of Defense personnel, the Cabinet approved the allocation of land in the Nahrawan area of Baghdad to be distributed among officers, service members, and employees of the ministry. Additionally, the ministry will prepare plots of land in other provinces for service members.

The Cabinet continued its evaluation of officials’ performance based on the established regulations and standards, and the confirmation of 11 directors-general in various state departments and institutions was approved.

Within the government’s framework for administrative reform, the Cabinet approved recommendations to regulate the dealings of beneficiary entities with letters of guarantee issued in their favor, taking into account the opinion of the legal directorate in the General Secretariat of the Cabinet.

To support the pharmaceutical industry, the Cabinet approved allocating additional funds to the State Company for Marketing Drugs and Medical Supplies, to be financed by the Ministry of Finance for the remainder of the current year, in line with the provisions of the Three-Year Federal Budget Law.

As part of supporting domestic production, the Cabinet approved the following:

1. Asphalt plants will be classified into three categories: Category (A) Asphalt plants will be supplied with oxidized asphalt equivalent to 60% of the actual black oil capacity, and Category (B) plants with 50% of the actual capacity, provided that the supply does not exceed the capacity approved by the Ministry of Oil and Ministry of Industry and Minerals for both categories. Supplies to Category (C) plants will be suspended until they are rehabilitated and upgraded according to the specified standards for each plant, with the rehabilitation confirmed by the designated committee.

2. Supplies will be priced at (-50%) of the global index, while plant owners shall bear the transportation costs. The decision will be valid for (6) months, during which the plants will be reclassified and evaluated by the committee referenced in Cabinet Resolution No. 24547 of 2024, following the committee’s restructuring. The head of the committee will be replaced, the representative of the National Investment Commission will be removed, and a representative of the Iraqi Federation of Industries will be added.

3. The Ministry of Oil will cease collecting insurance (price guarantees) and issue necessary directives to facilitate the transportation of supplied oil derivatives to asphalt plants in coordination with the National Operations Center.
In the agricultural sector, the Cabinet approved an exemption for the Smallholder Agriculture Revitalization Project (SARP) (funded by the International Fund for Agricultural Development (IFAD) from the projects listed in the decisions of the Diwani Order Committee (23942) referenced in Cabinet Resolution No. 24207 of 2024.

In a related decision, the Cabinet granted an extension to the State Company for Agricultural Supplies (SCAS) and the Mesopotamia State Company for Seeds Production (MSCSP) until the end of January 2025 to align their financial situation with the Federal Board of Supreme Audit. This extension concerns the settlement of final accounts and payment of the remaining share to the public treasury according to Cabinet Resolution No. 24600 of 2024.

In the field of organizing study scholarship programs abroad, the Cabinet approved that the Ministry of Higher Education and Scientific Research would exclusively oversee scholarships, except for scholarships issued by The Higher Committee for Education Development in Iraq in the Prime Minister’s Office.

As part of supporting local industry, the Cabinet approved the recommendations of the relevant authority in the Ministry of Industry and Minerals (Industrial Development and Regulation Department), based on the provisions of the Iraqi Products Protection Law (No. 11 of 2010), as amended, as follows:

1. Imposing an additional customs duty of 50% on the unit value of imported liquid soap from all countries and origins for four years without reduction, while monitoring the local market during the implementation period of these duties.

2. The Ministry of Finance/General Commission for Customs shall implement the additional customs duty on the aforementioned product and provide periodic notifications to the Ministry of Industry and Minerals/Industrial Development and Regulation Department regarding the volume of Iraq’s imports of the product, the value of additional customs duties collected from imports, the total value of imports, exporting countries, and importing parties.

3. The Ministry of Industry and Minerals shall monitor the increase in imports compared to the past three years to determine if there is an unjustified rise and assess the capacity of the complaining company to meet market demand. Additionally, it will evaluate the significance of the protection measures for the national economy.
4. Regulatory authorities will review the effects of imposing additional customs protection. This decision will take effect 120 days from its issuance date.

In the same context, the Cabinet approved the Ministry of Industry and Minerals' proposal to amend Paragraph (2/First) of the section on supporting the private industrial sector in Cabinet Decision No. 24413 of 2024. The amendment includes adding the phrase: “except for materials covered by Cabinet's decisions issued under the provisions of the Iraqi Products Protection Law (No. 11 of 2010), as amended” to the previous text.

In the energy sector, the Cabinet approved amending Cabinet Decision No. 24462 of 2024, concerning exemptions and approvals related to the CSSP-ITT-06 seawater pipeline tender and the CSSP project consultant (ILF Company). The amendments include exempting the project from Government Contract Execution Instructions (No. 2 of 2014) and the attached controls, as well as from applying the standard document.

In line with the government's approach to completing delayed projects and infrastructure initiatives, the Cabinet approved the following:

1. Reducing the cost of the component for the supply and installation of a 200 m³/h water unit with networks and transmission lines in Al-Muhamid area and adding a new component for uncompleted works related to the same project, while increasing the total cost of the main project.

2. Increasing the contingency allocation for the construction of the Martyr Ezzedine Salim Bridge within the project to build the same bridge in Basra Governorate, listed in the investment budget tables for the Ministry of Construction, Housing, Municipalities, and Public Works, and increasing the project’s total cost.

The Cabinet reviewed several items on the agenda and made the following decisions:

1. Approving the bill for Iraq University of Security Sciences, reviewed by the State Council, and referring it to the Parliament by constitutional provisions, while considering the observations of the Legal Department at the General Secretariat of the Cabinet.

2. Approving the allocation of the house owned by the Local Properties Administration in Kirkuk Governorate, to the Ministry of Higher Education and Scientific Research/University of Kirkuk Presidency, as the house is located within the university campus.