COALITION PROVISIONAL AUTHORITY MEMORANDUM NUMBER 4
CONTRACT AND GRANT PROCUDURES
APPLICABLE TO VESTERD AND SEIZED IRAQI PROPERTY AND THE
DEVELOPMENT FUND FOR IRAQ
IMPLEMENTATION OF REGULATION NUMBER 3, PROGRAM REVIEW
BOARD
Pursuant to my authority as Administrator of the Coalition Authority (CPA) and the laws and usages of war, and consistent with relevant U.N. Security Council resolutions, including Resolution 1483 (2003),
Underscoring that the Development Fund for Iraq (DFI) shall be used in a transparent manner to meet the humanitarian needs of the Iraqi people, for the economic reconstruction and repair of Iraq’s infrastructure, for the continued disarmament of Iraq, and for the costs of Iraqi civilian administration, and for other purposes benefiting the people of Iraq, and that the Program Review Board as authorized by CPA Regulation Number 3 (18 June 2003) is responsible for recommending expenditures of resources from the DFI.
Noting that Resolution 1483 (2003) states that independent public accountants approved by and reporting to the International Advisory and Monetary Board (IAMB) shall audit the DFI to ensure that the DFI is used exclusively for the purposes stated in Resolution 1483 (2003),
Reaffirming that the CPA is committed to ensuring that all state- or regime-owned cash, funds or realizable securities that have been seized by Coalition Forces in Iraq consistent with the laws and usages of war, shall be used only to assist the Iraqi people and support the reconstruction of Iraq,
Implementing CPA Regulation Number 3, Program Review Board (CPA/REG/18 June
2003/03),
I hereby promulgate the following:
Section 1
Purpose
This memorandum establishes procedures applicable to the execution of contracts and grants for the benefit of the Iraqi people using Iraqi Funds, as defined herein. As steward
for the Iraqi people, the CPA will manage and spend Iraqi Funds, which belong to the Iraqi people, for their benefit. Although Iraqi Funds are not subject to the same laws and regulations that apply to funds provided to the COA directly from coalitions governments,
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they shall be managed in a transparent manner that fully comports with the CPA’s
obligations under international law, including Resolution 1483.
Section 2
Applicability
This Memorandum applies to contracts and grants executed by or on behalf of the CPA, when those instruments obligate and expend Iraqi Funds. It covers contracts and grants executed by:
1) CPA Regional Directors carrying out the Regional Directors’ Emergency Response
Program; 2) CPA Regional Directors carrying out the Construction Initiative for Iraq Program; 3) Interim Ministry Officials, working in conjunction with Senior Ministry Advisors,
when carrying out requirements that are not funded through the national Ministry
budget process; 4) CPA’s Head of Contracting Activity, or designee(s), and 5) Others delegated such authority by the Administrator.
This Memorandum does not apply to:
1) Iraqi Ministries and governmental agencies executing contracts or grants to fulfill requirements approved through the national budget process if the Administrator, or his designee, determines that the contracting procedure of the Ministry or agency is adequate to ensure the transparent use and management of Iraqi funds. However, if the contracting procedures of the particular Ministry or agency are not determined to be adequate, this Memorandum shall apply, and
2) Coalition Forces commanders carrying out the Commanders’ Emergency Response
Program. The Commanders’ Emergency Response Program will use the procedures
contained in FRAGO 89 (Appendix E) or any subsequent amended guidance to
FRAGO 89.
Section 3
Definitions
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1) “Competitive Range”: A group of proposals that are eligible for award of a
particular contract or grant, as determined by a Contracting Officer on the basis of cost and other factors stated in the solicitation.
2) “Contract”: A written agreement whereby the CPA or Coalition Forces acquire
goods, services or construction from a person or entity under prescribed terms and conditions, for the purpose of assisting the Iraqi people or assisting in the recovery of Iraq.