Iraqi Budget Woes Force Security Hiring Freeze

The drop in oil prices has forced Iraq's military and police to put recruiting on hold even as the U.S. hands over more responsibility for protecting the country.

A U.S. Navy boat approaches a British war ship in the waterway that borders Iran in Umm Qasr in...

A U.S. Navy boat approaches a British war ship in the waterway that borders Iran in Umm Qasr in southern Iraq, Monday, March 16, 2009. Iraq's budget woes have forced the security forces to put recruiting plans on hold even as the U.S. and British militaries move forward with plans to relinquish more responsibilities for protecting the nation's vital infrastructure and waterways. That has left the fledgling Iraqi navy with more than 60 percent of its slots unfilled less than two months before it is due to take over one of two oil terminals floating in a disputed waterway that borders Iran. (AP Photo/Kim Gamel)

(AP)

The freeze is stalling efforts to hire Sunni ex-insurgents and has prompted the Iraqi military to transfer hundreds of soldiers to the navy to protect vital oil installations in the Persian Gulf.

Iraq will also have to scale back purchases of equipment and weapons, raising new questions about its ability to defend the country's borders and prevent a resurgence of violence.

All this comes as the Iraqi military is preparing for the 2011 departure of U.S. forces, who often provide everything from clean drinking water to fuel.

It's unlikely to affect the withdrawal schedule, which was set in a security agreement that took effect Jan. 1. But unless oil prices rebound, the crisis could threaten hard-won security gains.

The freeze began without fanfare in the police ministry in December and expanded when the government had to revise its 2009 budget early this year. It was confirmed this week by U.S. and Iraqi officials.

This month, Iraq's parliament passed a $58.6 billion budget, which was sharply reduced twice from $79 billion after oil prices plummeted from a high of nearly $150 a barrel last July to $51 a barrel on Friday. Iraq relies on oil sales for about 90 percent of its revenue.

One of the biggest concerns is the government effort to bring tens of thousands of Sunni fighters who turned against al-Qaida in Iraq into the security forces to keep them employed and away from violence.

The government has promised to hire 20 percent of the so-called Sons of Iraq into the army or police, but the transition has gone slowly.

The transfer of more than 91,000 Sunnis who left the insurgency and joined security groups initially funded by the U.S. to Iraqi government control is due to be completed next month. Just over 3,000 have joined the army and police, although Iraq's government is paying the others a small salary.