Order 2: Dissolution of Entities with Annex A

COALITION PROVISONAL SUTHORITY ORDER NUMBER 2 DISSOULUTION OF ENTITIES

Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA), relevant U.N. Security Council resolutions, including Resolution 1483 (2003), and the laws and usages of war,

Reconfirming all of the provisions of General Franks’ Freedom Message to the Iraqi People of April 16, 2003,

Recognizing that the prior Iraqi regime used certain government entities to oppress the Iraqi people and as instruments of torture, repression and corruption,

Reaffirming the Instructions to the Citizens of Iraq regarding Ministry of Youth and Sport of May 8, 2003,

I hereby promulgate the following:

Section 1 Dissolved Entities

The entities (the “Dissolved Entities”) listed in the attached Annex are hereby dissolved. Additional entities may be added to this list in the future.

Section 2 Assets and Financial Obligations

1) All assets, including records and data, in whatever from maintained and wherever located, of the Dissolved Entities shall be held by the Administrator of the CPA (“the Administrator”) on behalf of and for the benefit of the Iraqi people and shall be used to assist the Iraqi people and to support the recovery of Iraq.

2) All financial obligations of the Dissolved Entities are suspended. The Administrator of the CPA will establish procedures whereby persons claiming to be the beneficiaries of such obligations may apply for payment.

3) Persons in possession of assets of the Dissolved Entities shall preserve those assets, promptly inform local Coalition authorities, and immediately turn them over, as directed by those authorities. Continued possession, transfer, sale, use, conversion, or concealment of such assets following the date of this Order is prohibited and may be punished.

CPA/ORD/23 May 2003/02

� Section 3 Employees and Service Members

1) Any military or other rank, title, or status granted to a former employee or functionary of a Dissolved Entity by the former Regime is hereby cancelled.

2) All conscripts are released from their service obligations. Conscriptions is suspended indefinitely, subject to decisions by future Iraq governments concerning whether a free Iraq should have conscription.

3) Any person employed by a Dissolved Entity in any form or capacity, is dismissed effective as of April 16, 2003. Any person employed by a Dissolved Entity, in any from or capacity remains accountable for acts committed during such employment.

4) A termination payment in an amount to be determined by the Administrator will be paid to employees so dismissed, except those who are Senior Party Members as defined in the Administrator’s May 16, 2003 Order of the Coalition Provisional Authority De-Ba`athification of Iraqi Society, CPA/ORD/2003/01 (“Senior Party Members”) (See Section 3.6).

5) Pensions being paid by, or on account of service to, a Dissolved Entity before April 16, 2003 will continue to be paid, including to war widows and disabled veterans, provided that no pension payments will be made to any person who is a Senior Party Member (see Section 3.6) and that the power is reserved to the Administrator and to future Iraqi governments to revoke or reduce pensions as a penalty for past or future illegal conduct or to modify pension arrangements to eliminate improper privileges granted by the Ba`athist regime or for similar reasons.

6) Notwithstanding any provision of this Order, or any other Order, law, or regulation, and consistent with the Administrator’s May 16, 2003 Order of the Coalition Provisional Authority De-Ba`athification of Iraqi Society, CPA/ORD/2003/01, no payment, including a termination or pension payment, will be made to any person who is or was a Senior Party Member. Any personholding the rank under the former regime of Colonel or above, or its equivalent, will be deemed a Senior Party Member, provided that such persons may seek, under procedures to be prescribed, to establish to the satisfaction of the Administrator, that they were not a Senior Party Member.

CPA/ORD/23 May 2003/02

� ANNEX COALITION PROVISIONAL AUTHORITY ORDER NUMBER 2 DISSOLUTION OF ENTITIES

Institutions dissolved by the Order referenced (the “Dissolved Entities”) are:

The Ministry of Defence

The Ministry of Information

The Ministry of State for Military Affairs

The Iraqi Intelligence Service

The National Security Bureau

The Directorate of National Security (Amn al-‘Am)

The Special Security Organization

All entities affiliated with or comprising Saddam Hussein’s bodyguards to include:

-Murafaqin (Companions)

-Himaya al Khasa (Special Guard)

The following military organizations:

-The Army, Air Force, Navy, the Air Defence Force, and other regular

military services

-The Republican Guard

-The Special Republican Guard

-The Directorate of Military Intelligence

-The Al Quds Force

-Emergency Forces (Quwat al Tawari)

The following paramilitaries:

-Saddam Fedayeen

-Ba`ath Party Militia

-Friends of Saddam

-Saddam’s Lion Cubs (Ashbal Saddam)

Other Organizations:

-The Presidential Diwan

-The Presidential Secretariat -The Revolutionary Command Council CPA/ORD/23 May 2003/02

� -The National Assembly

-The Youth Organization (al-Futuwah)

-National Olympic Committee

-Revolutionary, Special and National Security Courts

All organizations subordinate to the Dissolved Entities are also dissolved.

Additional organizations may be added to this list in the future.

CPA/ORD/23 May 2003/02