8 Supreme Court verdicts that redefined Baghdad-Erbil relations
The Kurdistan Democratic Party's announcement this week that it intends to boycott the Kurdistan parliament elections in June, coupled with threats of withdrawing entirely from the political process in Baghdad, ostensibly stems from last month's Federal Supreme Court decisions concerning the region’s electoral law and the payment of KRG salaries.
But the current tensions represent the culmination of two years of mounting discord over several landmark rulings issued by the Supreme Court that have largely sought to define the parameters of Iraqi federalism and clarify the powers of the Kurdistan Region. Here are 8 of the most consequential rulings:
February 2022
Suspension of Hoshyar Zebari’s presidential bid
The Supreme Court ruled that the former foreign minister and KDP stalwart did not fulfil requirements needed to be a candidate for the presidency. The court received a lawsuit from several MPs claiming that his candidacy was unconstitutional because he was impeached by parliament in 2016 over allegations of corruption.
The court issued a temporary injunction against his candidacy on the basis that the head of state must have “a good reputation and integrity”.
February 2022
KRG oil contracts deemed unlawful
The Supreme Court ruled that the KRG’s Oil and Gas Law No. 22 of 2007 was unlawful because it violated Articles 110, 112, 115, 121, and 130 of the constitution. It also asserted that the KRI's oil production had to be under the control of the federal government and that the federal Ministry of Oil had the authority to nullify oil contracts signed by the KRG with international firms.
January 2023
Budget transfers to KRG deemed unlawful
The Supreme Court ruled that both paid and pending budget transfers by Baghdad to the KRG were illegal. The lawsuit was filed by the Governor of Wasit Mohammed Mayahi and MP Mustafa Sanad from Basra. The Sudani government had passed a resolution to pay the monthly salaries of public sector employees in the Kurdistan Region for November and December 2022 but Finance Minister Taif Sami declined to sign off on the transfers citing legal reasons, resulting in the appointment of the KDP’s Masoud Hayder as deputy finance minister in order to push payments through.
The court deemed that the transfer of further funds could not proceed until finances are resolved and KRG oil sales are subject to federal oversight.
May 2023
Kurdistan Parliament term extension struck down
The Supreme Court ruled that the decision by the Kurdistan Region Parliament to extend its term in October 2022 was unconstitutional, in response to a lawsuit filed by the New Generation and former speaker Yousif Mohammed.
The ruling meant that regional elections scheduled then for November 2023 had to be overseen by the federal electoral commission because the renewal of the KRI electoral commission’s mandate had no legal basis.
August 2023
Revenue-sharing provisions in the budget upheld
The Supreme Court ruled in the KRG’s favor on 2 claims against provisions within the 2023-25 federal budget law, but rejected another 4 claims in a lawsuit filed by the KRG.
Article 11 of the budget law requires budget transfers by the Ministry of Finance to the KRG to be approved by the prime minister, but the court ruled that conditioning the PM’s approval was unconstitutional.
Article 13 details a mechanism for resolving budget disputes between Baghdad and Erbil. It requires a joint committee to be formed, but a provision within the law notes that if negotiations fail, parliament would be given the right to adjudicate. The court ruled that parliament’s role was also unlawful.
But the court rejected the KRG’s appeal against 4 other key provisions that detail the KRG’s share of the budget and govern how revenues are to be distributed between the federal and regional governments. This meant that the fundamental aspects of the budget deal between Baghdad and Erbil were upheld by the court.
September 2023
Transfer of military base to KDP in Kirkuk halted
The Supreme Court ordered a temporary injunction against a directive issued by PM Sudani for federal forces to vacate a military base in Kirkuk that was intended to be handed over to the Kurdistan Democratic Party.
Demonstrations in Kirkuk broke out after news emerged that Peshmerga forces tied to the KDP were due to take over a military base that had been held by Kirkuk Operations Command since federal forces retook the city in 2017 following the Kurdistan referendum.
The court cited multiple legal grounds for its decision, not least, the preamble of the constitution, which emphasizes the unity of Iraq and the equal rights of citizens regardless of ethnicity or sect.
The court’s decision was unprecedented because it essentially assigned federal forces as guarantors of the rights and freedoms of all Iraqi citizens, a legal opinion that could be applied to all disputed territories.
February 2024
Direct payment of salaries to KRG employees mandated
The Supreme Court issued a landmark ruling mandating the federal government to directly pay employees of the KRG. This verdict settled a long-running debate regarding Baghdad's obligation to cover KRG salaries, but it also undercut Erbil’s political authority and constrained the scope of federalism.
The ruling also mandated the KRG to relinquish all oil and non-oil revenues to Baghdad and to cooperate with the Federal Board of Supreme Audit to ascertain monthly revenues and the exact number of KRG employees.
February 2024
Minority quota seats abolished
The Supreme Court deemed quota seats reserved for minorities in the KRG parliament to be unlawful, bringing the number of seats down from 111 to 100. The lawsuit was filed by the PUK, who wanted to stop the KDP from gaining more seats through ones reserved for minorities situated in districts primarily dominated by the KDP.
The court also ruled that Kurdistan parliament elections needed to be based on four separate voting districts rather than a single district, which further disadvantages the KDP’s electoral prospects.
