Iraq MPs ask hard questions on parliamentary cash

BAGHDAD - Iraqi lawmakers refused to vote on parliament's 2006 budget on Saturday, saying the chamber meant to spotlight government corruption had failed to provide transparent records on its own spending.

In an extraordinary session, parliament's finance committee failed to win backing for a 110 billion dinar budget as it faced a barrage of questions on everything from millions of dollars spent on furniture to conference budgets.

"What do you mean by extra services? We want a full explanation in the national assembly," said parliamentary deputy Hanan al-Fatlawi.

The grilling came ahead of an October 15 constitutional referendum and elections in December that Iraqi leaders hope will ease deep sectarian and political divisions.

Iraqi officials have warned that corruption is a major threat to the future of a country already overwhelmed by an insurgency that has killed thousands.

Iraqi leaders have been promising to clamp down on the misuse of funds since a US-led invasion toppled Saddam Hussein's dictatorship in 2003.

But newspapers report corruption scandals almost every week, angering Iraqis who see greedy officials squandering money meant for reconstruction and improvements to services after decades of war and economic mismanagement under the old regime.

Lawmakers raised questions that keep coming up in a chamber that Iraqi leaders and their American supporters say will uphold democractic principles in the new Iraq.

ARREST WARRANT

Mahmoud al-Raadi reminded the finance committee that the state was obliged to divulge expenses of all officials who travel abroad and demanded that parliament provide a list of officials who make trips and their expenditures.

Some lawmakers have said the assembly should focus on alleged corruption under former interim prime minister Iyad Allawi involving millions of unaccounted dollars.

Iraq is expected to issue an arrest warrant soon for Allawi's former defence minister Hazim Shaalan in connection with the disappearance of more than $1 billion, according to a corruption investigator.

MP Ali Dabbagh asked the finance committee to provide details on millions of dollars spent on conferences.

"There will be no voting today. The budget is not complete and its articles are not clear. We believe that it needs lots of clarifications," he said.

Adnan al-Janabi, a member of the finance committee, urged lawmakers to focus on the 2006 budget, not spending in the current year.

But MPs seemed determined to track all cash flows.

"How can we vote when we saw nothing of the last budget?" asked lawmaker Mahmoud Othman.

- REUTERS