The International Advisory and Monitoring Board (IAMB) met in Washington D.C. in May in reference to the Development of Iraq Fund (DFI). The purpose of the meeting was to update their findings and information about the DFI funds.
The IAMB is responsible to ensure the Iraqi government is using the DFI fund in a transparent manner and all benefits from the fund are going to the Iraqi people. And to be sure all export sales of petroleum and products to include gas are made within the world market limits.
The IAMB is using accountants from Ernst & Young the appointed DFI auditors to write accurate financial reports concerning the DFI funds. The Iraqi government is slow to providing the information to IAMB to complete their reports on 30 June 2006
The IAMB wants to complete the reports in a timely manner to complete a 12 month reporting period. This would give Iraq a snapshot of their financial standing to give the world’s private corporations and companies a look at them. This is all inline with the direct foreign investment that large corporations want to know. If the large corporations don’t know the financial health of Iraq then the large corporations are most likely wont be investing funds in a country that can not provide the information they are seeking.
It would be difficult for foreign investments to start investing funds in Iraq when you have no independent study of the DFI funds on how Iraq has been managing the funds given them.
If you were a large corporation with billions in cash looking to invest in a emerging market, you would want to know if your money was going to benefit the Iraqi people such as construction projects etc. or is your corporate money just going to be used to build a mansion for the local militia commander.
The IAMB is not the only organization to pressure Iraq government to provide accurate documents to the information that they are seeking. Another organization is the IMF. On 30 June 2006 the IMF is expecting Iraq to provide information about the progress of the SBA loan that was given to them in quarterly installments starting last December 2005. If Iraq doesn’t provide the report it is possible the IMF could with hold funds that are scheduled to be released on 30 June 2006, the third installment of the SBA loan.
Iraq can’t afford to continue to delay or stall the IAMB, and possibly the IMF (after 30 June) any longer because the large corporations will lose interest and go to another country to invest. If the report doesn’t come out soon by the IAMB then the corporate investments most likely will be delayed also.