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Hoshyar Zebari Image Credit: AP

Baghdad: Iraqi lawmakers voted to oust Finance Minister Hoshyar Zebari amid allegations he misused public funds, a move that may deepen the country’s political crisis as the government prepares for a decisive battle against Daesh. Deputy Parliament Speaker Humam Hamoudi said 158 lawmakers voted against Zebari, a Kurdish politician, in Baghdad on Wednesday, while 77 supported him. Zebari, who has denied all allegations of squandering public money, can appeal but for the time being cannot carry out his duties. The vote comes less than a month after parliament dismissed Defense Minister Khalid Al Obaidi.

Zebari’s ouster will test a fragile relationship between Iraq’s Kurds, who have ruled a semi-autonomous region in the north for more than two decades, and Shiite as well as Sunni Arab politicians in Baghdad.

Kurdish fighters are expected to play a role in the battle to retake Mosul, Daesh’s last major stronghold in OPEC’s second-largest producer.

Prime Minister Haidar Al Abadi, a Shiite, predicted that the militants could be driven out of the city in the next two months, the New York Times reported this week.

In addition to the fight against Daesh, Iraq has been grappling with low oil prices and political turmoil. The central government has been locked in a dispute with the Kurdistan Regional Government since 2014, when the Kurds began selling their oil independently.

Al Abadi’s attempts to install a cabinet of technocrats have been also stymied by revolts in parliament and intensifying divisions among Shiite political factions.

“When you try to marginalise one of the main blocs in the parliament like the Kurdish bloc definitely, this will negatively impact the war against” Daesh, Serwan Abdullah Esmail, a Kurdish lawmaker, said by phone. He didn’t elaborate.

But Wathiq Al Hashimi, a Baghdad-based commentator, said the political crisis “won’t impact the preparations for the upcoming Mosul battle.” He predicted that Kurdish leaders may also move swiftly to fill Zebari’s cabinet post.

Al Abadi is expected to present candidates to fill cabinet posts after returning from a current visit to the US.

Zebari has been leading Iraq through talks with the International Monetary Fund to help repair public finances battered by the war and low oil prices. The first review of Iraq’s progress toward honoring pledges to the IMF to cut spending and reduce corruption was set to end this month. Once Iraq completes the review, it will be eligible to receive a second loan installment of up to $635 million.

In an e-mailed statement after the vote in parliament, IMF mission chief Christian Josz said the fund is “committed to working with the authorities to implement” the agreement.

According to the parliamentary speaker’s office, lawmakers rejected Al Abadi’s request to postpone the vote until Iraq meets the loan requirements.