Order 75: Realignment of Military Industrial Companies

COALITION PROVISIONAL AUTHORITY ORDER NUMBER 75

REALIGNMENT OF MILITARY INDUSTRIAL COMPANIES

Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA), and under the laws and usages of war, and consistent with relevant U.N. Security Council resolutions, including Resolutions 1483 and 1511 (2003),

Furthering commitments to promote public order and safety and restore the conditions of security and stability for the Iraqi people,

Having worked closely with the Governing Council to ensure that economic change occurs in a manner acceptable to the people of Iraq,

Recognizing that many state-owned enterprises previously engaged in military industrial production (heretofore “military industrial companies”) sit idle and largely abandoned throughout Iraq,

Concerned that buildings and factories of companies formerly assigned to the military industrial commission (or “military industrial companies”) often contain stockpiles of hardware and materials that remain deployable for violent uses against Coalition Forces and the people of Iraq, and that employees of these companies remain needlessly underemployed and unable to utilize their skills to promote the welfare of Iraq,

Determined to secure and dispose of these stockpiles and to assign responsibility for reconstituting military industrial companies and reassigning their employees as necessary for the promotion of peace, security, and stability in Iraq;

I hereby promulgate the following:

Section 1 Purposes and Objectives

This Order promotes public order and safety for the Iraqi people by providing for the security and destruction of materials abandoned after the closure of military industrial companies throughout Iraq. This order also restores conditions of stability in Iraq by assigning responsibility for the personnel and assets of military industrial companies to appropriate ministries and facilitating the reconstitution of such companies for peaceful and resourceful uses.

Section 2 Military Industrial Companies

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� 1) Military industrial companies subject to this Order include those state-owned enterprises listed in Annex A. The absence of appropriate responsibility for the facilities and assets of these enterprises has been determined by the Administrator to constitute a continuing threat against Coalition Forces and the people of Iraq if not appropriately secured.

2) State-owned enterprises formerly assigned to institutions dissolved under CPA Order No. 2 (CPA/ORD/23 May 2003/02), Dissolution of Entities, and those enterprises formerly assigned to the military industrial commission are generally subject to inclusion in Annex A.

3) The military industrial commission is an entity dissolved under CPA Order No. 2 (CPA/ORD/23 May2003/02).

4) The Administrator retains authority to add state-owned enterprises to Annex A if it is determined that such enterprises previously engaged in military industrial production and either (a) threaten public order and safety on account of stockpiles and/or abandoned materials that may be used for violent purposes against Coalition Forces and the people of Iraq, or (b) have real property or other tangible assets that the enterprise as presently constituted cannot adequately safeguard and thus stand in danger of being looted, severely damaged, or destroyed.

5) The Minister of Industry shall be notified of any additions or deletions to Annex A within ten days of such action being taken by the Administrator. The Minister of Industry shall also inform the Administrator of any state-owned enterprise known to have been engaged in military industrial production, but not listed in Annex A

Section 3 Disposition of Military Industrial Assets and Employees

1) The Administrator retains authority to secure facilities and dispose of the material assets of enterprises listed in Annex A so long as the Administrator finds that such facilities or assets or the lack of control over such facilities and assets constitute a continuing threat to Coalition Forces and the people of Iraq.

2) The Administrator also retains authority to reclassify and/or reorganize the enterprises listed in Annex A, so long as the Administrator finds such reclassification and/or reorganization essential to the safety of Coalition Forces and the people of Iraq, the preservation of assets and property for the people of Iraq, or the restoration of societal conditions necessary to the self determination of the Iraqi people. Where an enterprise listed in Annex A is not reassigned to another Iraqi ministry, the liabilities of such enterprise shall be assumed by the Ministry of Finance.

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� 3) The Administrator further retains authority to reassign otherwise unemployed workers of the enterprises listed in Annex A to other Iraqi ministries, governmental agencies, governmental instrumentalities, or state-owned enterprises, so long as the Administrator finds such reassignment furthers the security and safety of Coalition Forces and the people of Iraq or furthers the restoration of societal conditions necessary to the self determination of a free people.

4) To ensure continuity in the economy of Iraq and the salaries of workers reassigned under this Section, the Minister of Finance will assure that the budget of any enterprise reassigned and/or reclassified under this Section, and the associated payroll information for any employee reassigned under this Section, shall follow that enterprise or employee to their new ministry or place of employment. Employees reassigned under this Section shall be guaranteed a salary commensurate with the salary paid by their former employer.

5) The Minister of Industry must be notified in writing of any action taken under this Section, and within 14 days of such notice may issue an opinion as to whether such action serves the interests of the Iraqi people. The Minister of Industry may make specific recommendations for alternative courses of action, keeping in mind that the Administrator retains full authorization under the laws and usage of war to ensure and restore public order and security in Iraq.

Section 4 Assignment and Consolidation

1) Responsibility for military industrial companies and the assets and personnel thereof not listed in Annex A shall be assigned to the Ministry of Industry and Minerals or such other ministry as the Administrator deems appropriate. These companies shall include all state-owned enterprises formerly supervised or owned by institutions dissolved under CPA Order No. 2 (CPA/ORD/23 May 2003/02), or formerly assigned to the military industrial commission.

2) Military industrial companies assigned to the Minister of Industry and Minerals under this Section may be subject to consolidation pursuant to the procedures set forth in other CPA Orders.

Section 5 Administrative Instructions

The Administrator may delegate authority to issue Administrative Instructions to clarify and implement this Order.

Section 6

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� Annex A Military Industry Commission Companies (MIC’s) to Ministry of Industry and Minerals (MIM)

Enterprise Area of Total Amount Buildings Level Machines Destruction Assign Employees Name Activity of Workers of Destruction(%) and Looting(%) and Assets to: 1. Al Saheed Copper production 1,300 11.9% 45% MIM 2. Tareq Pesticides, chemicals 896 30.6% 25% Ministry of Finance 3. Hammurabi Pistols, small arms 636 2.8% 15% Ministry of Finance 4. Al Tahady Electromecanichal 399 10.4% 35% MIM 5. Ibn Waleed Heavy armored veh. Rep. 926 10.5% 60% Ministry of Finance 6. Al Ikhaa Mechanical, optics 2,382 1.7% 20% MIM 7. Al Rasheed Co2 producer, mechanical 2,290 43.2% 50% Ministry of Finance 8. Asahf al Kabir Concrete additives 86 26.1% 35% Ministry of Finance 9. Al Noaman Plastic injection, irrigation 643 6.0% 10% MIM 10. Al Uboor Mechanical machining 1,217 70.4% 100% Ministry of Finance 11. Al Mansour Solar cells, IC, gases 670 0.2% 5% MIM 12. Radhwan Machining 760 34.0% 60% Ministry of Finance

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� Enterprise Area of Total Amount Buildings Level Machines Destruction Assign Employees Name Activity of Workers of Destruction(%) and Looting(%) and Assets to: 13. Al Nidaa Dies, molds, gears 1,281 41.8% 80% Ministry of Finance 14. Al Salam Construction Equip. 752 7.7% 100% Ministry of Housing 15. Ibn Majed Eng. Mfg. Marine et.al. 1.648 21.6% 30% MIM MIC’s to Ministry of Labor and Social Affairs (MOLSA): Enterprise Area of Total Amount Buildings Level Machines Destruction Assign Employees Name Activity of Workers of Destruction(%) and Looting(%) and Assets to: 1. Training Center All defense SOE’s specialties N/A N/A N/A Ministry of Labor MIC’s That Will Have Surviving Assets and Employees Transferred to Other Iraqi Government Agencies: Enterprise Area of Total Amount Buildings Level Machines Destruction Assign Employees Name Activity of Workers of Destruction(%) and Looting(%) and Assets to: 1. Jaber ben Hayan Plastic, rubber, filters 904 25.7% 95% Ministry of Finance 2. Yarmuk Ammunitions, barbed wire 2,708 65.8% 100% Ministry of Finance 3. Al ezz Electronic switching 1,046 23.7% 100% Ministry of Finance 4. Al Kadissiya Guns, grenades, mortars 3,035 69.9% 100% Ministry of Finance

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� Enterprise Area of Total Amount Buildings Level Machines Destruction Assign Employees Name Activity of Workers of Destruction(%) and Looting(%) and Assets to: 5. Al Fidaa Hydraulic, pneumatic systems 1,285 50.2% 100% Ministry of Finance 6. Al Karama Missiles, mechanical 2,287 51.4% 40% Ministry of Finance 7. Al Qaqa Explosives, powder, TNT 5,365 36.6% 85% Ministry of Finance 8. Bader Tools, dies 1,631 82.8% 100% Ministry of Finance 9. Tabook Powder for cartridges 532 0.3% 20% Ministry of Finance 10. Al Hadhar Chemical products 572 70.6% 100% Ministry of Finance 11. 7 Nissan Fuses, military shells 2,652 94.2% 100% Ministry of Finance 12. Al Hareth Radars, welding equipment 1,387 0.0% 60% Ministry of Finance 13. Al Kindi R & D radars 976 38.0% 90% Ministry of Finance 14. Sanahareeb Irrigation systems 675 22.3% 100% Ministry of Finance 15. Salahuddeen Communication, radars 2,900 34.2% 75% Ministry of Finance 16. Ibn Rushd Qa, testing, inspection 448 50.0% 100% Ministry of Finance 17. Hutten Ammunition, guns, mortars 5,473 25.9% 70% Ministry of Finance

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