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ERBIL, Kurdistan Region — More than 1,000 public construction projects in Sulaimani are on hold, some of them languishing for years, as a result of the government’s failure to pay private contractors hired for the jobs, the spokesperson for the Sulaimani Contractors’ Union told Rudaw on Wednesday.
Some of the projects date back to 2011 to 2014 and with prolonged financial unrest, the Kurdistan Regional Government (KRG) has not paid its dues.
“The government right now owes the companies around 300 billion dinars,” spokesperson for the Sulaimani Contractors’ Union Miran Kamil told Rudaw’s Mohammed Sheikh Fatih on Wednesday. “This money, either the companies have completed their project and have not received the check, or they have received a check but cannot cash it due to an illegal pledge they signed to not cash out the money.”
“At the time, we signed the pledge, it was on the grounds that the government would pay us monthly based on their ability,” he added. “However, the government has not done that.”
The inability to cash out money from the banks, had led many contractors to sell their checks to businessmen for less than the written amount.
“For a $100,000 check, I would get paid $35,000 when I sold my check, because I was in need of the money. Many contractors have lost a lot of money due to this,” Kamil said.
According to data from Kamil, out of around 1,270 contractors, including individuals and businesses, in the Kurdistan Region, nearly 850 contractors have gone out of business due to the lack of payment from the KRG.
The contractors note that the government is announcing more projects, despite not having settled their existing debts.
"Sulaimani governorate and Halabja governorate are trying to start new projects to say they have new achievements, however an achievement would be to clear these old debts,” Kamil said.
Prime Minister Masrour Barzani in February announced that more than 350 billion dinars will be allocated to investment projects across all four provinces in the KRG 2021 budget.
Kamil says the 114 billion dinars allocated for Sulaimani province to start new projects should be used instead to finish the older projects.
“This is an important and practical step, and serves as the economic decentralization that has been asked for,” Sulaimani province governor Haval Abubakir told Rudaw’s Shaho Amin at the time. “The market will bloom again, cash will flow back to the market, more people will work, and local products will be used more, as a result this becomes an achievement to the KRG.”
Some of the projects date back to 2011 to 2014 and with prolonged financial unrest, the Kurdistan Regional Government (KRG) has not paid its dues.
“The government right now owes the companies around 300 billion dinars,” spokesperson for the Sulaimani Contractors’ Union Miran Kamil told Rudaw’s Mohammed Sheikh Fatih on Wednesday. “This money, either the companies have completed their project and have not received the check, or they have received a check but cannot cash it due to an illegal pledge they signed to not cash out the money.”
“At the time, we signed the pledge, it was on the grounds that the government would pay us monthly based on their ability,” he added. “However, the government has not done that.”
The inability to cash out money from the banks, had led many contractors to sell their checks to businessmen for less than the written amount.
“For a $100,000 check, I would get paid $35,000 when I sold my check, because I was in need of the money. Many contractors have lost a lot of money due to this,” Kamil said.
According to data from Kamil, out of around 1,270 contractors, including individuals and businesses, in the Kurdistan Region, nearly 850 contractors have gone out of business due to the lack of payment from the KRG.
The contractors note that the government is announcing more projects, despite not having settled their existing debts.
"Sulaimani governorate and Halabja governorate are trying to start new projects to say they have new achievements, however an achievement would be to clear these old debts,” Kamil said.
Prime Minister Masrour Barzani in February announced that more than 350 billion dinars will be allocated to investment projects across all four provinces in the KRG 2021 budget.
Kamil says the 114 billion dinars allocated for Sulaimani province to start new projects should be used instead to finish the older projects.
“This is an important and practical step, and serves as the economic decentralization that has been asked for,” Sulaimani province governor Haval Abubakir told Rudaw’s Shaho Amin at the time. “The market will bloom again, cash will flow back to the market, more people will work, and local products will be used more, as a result this becomes an achievement to the KRG.”
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