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WORLD NEWSWednesday 17 February
IS faces budget crunch, killing perks and slashing salaries
L. HINNANT
Z. KARAM
S. GEORGE
Associated Press
BEIRUT (AP) — Faced with a
cash shortage in its so-called
caliphate, the Islamic State
group has slashed salaries
across the region, asked
Raqqa residents to pay utility
bills in black market Ameri-
can dollars, and is now re-
leasing detainees for a price
of $500 a person.
The extremists who once
bragged about minting their
own currency are having a
hard time meeting expens-
es, thanks to coalition air-
strikes and other measures
that have eroded millions
from their finances since last
fall. Having built up loyalty
among militants with good
salaries and honeymoon and
baby bonuses, the group has
stopped providing even the
smaller perks: free energy
drinks and Snickers bars.
Necessities are dwindling in
its urban centers, leading to
shortages and widespread
inflation, according to exiles
and those still suffering under Ahmad, also relies on com-
its rule. Interviews gathered
over several weeks included
three exiles with networks
of family and acquaintances
still in the group’s stronghold rective announcing the fight-
in Raqqa, residents in Mosul,
and analysts who say IS is
turning to alternative funding
streams, including in Libya.
In Raqqa, the group’s strong-
hold in Syria, salaries have
been halved since December,
electricity is rationed, and
prices for basics are spiral-
ing out of reach, according to
people exiled from the city.
“Not just the militants. Any
civil servant, from the courts
to the schools, they cut their
salary by 50 percent,” said a
Raqqa activist now living in
the Turkish city of Gazian-
tep, who remains in close
Militants of the Islamic State group hold up their weapons and wave its flags on their vehicles in a tember cut off salaries to
convoy on a road leading to Iraq, in Raqqa, Syria. The extremist group that once bragged about government workers within
minting its own currency is now accepting only U.S. dollars in Raqqa, slashing salaries across the territory controlled by the
board and imposing “exit fees” for those trying to leave its domain. extremists, after months of
wavering about the humani-
(Militant photo via AP) tarian costs paid by those
trapped in the region. Iraqi
contact with his native city. State is facing, it has been ing crippling airstrikes on oil officials estimate that Islamic
But that apparently wasn’t decided to reduce the sala- infrastructure in Syria and State taxed the salaries at
enough close the gap for a ries that are paid to all muja- Iraq and the cutoff of supply rates ranging from 20 to 50
group that needs money to hedeen by half, and it is not lines and revenue sources. percent, and analysts and the
replace weapons lost in air- allowed for anyone to be ex- The resident, who asked only government now estimate a
strikes and battles, and pays empted from this decision, that his first name Oussama loss of $10 million minimum
its fighters first and foremost. whatever his position.” Those be used because he still has each month. Between the
Those two expenses account circumstances include the family in the city, said dozens loss of that money — and
for two-thirds of its budget, dramatic drop in global prices of residents of al-Bab have the U.S.-led bombing of cash
according to an estimate by for oil — once a key source fled, ignoring orders from the warehouses — American of-
Aymenn Jawad al-Tamimi, a of income — airstrikes that extremists. ficials are optimistic that the
researcher with the Middle have targeted cash stores “You can sense the frustra- effect could diminish Islamic
East Forum who sources Is- and oil infrastructure, supply tion, their morale is down,” State’s wealth.
lamic State documents, line cuts, and crucially, the Oussama said of the fighters. “We are seeing our efforts
Within the last two weeks, Iraqi government’s decision A former Raqqa resident now having some effect on their
the extremist group started to stop paying civil servants living in Beirut said Syrians financial flows. And it’s dif-
accepting only dollars for in territory controlled by the abroad are sending remit- ficult to get a handle on just
“tax” payments, water and extremists. tances in dollars to cover sky- how much because of the
electric bills, according to the A Russian-backed Syrian gov- rocketing prices for vegeta- different illicit ways in which
Raqqa activist, who asked to ernment offensive in Aleppo bles and sugar. The resident, they are handling their fi-
be identified by his nom de province, where IS controls whose wife and baby still live nances but you’ve seen the
guerre Abu Ahmad for his major towns including Man- in the city, did not want his efforts that our military has
safety. “Everything is paid in bij, Jarablus and al-Bab, is name used for their safety. taken to take out cash stor-
dollars,” he said. His account also putting pressure on IS. One of the other ex-residents, age sites, and I think it is our
was bolstered by another Government troops and allied now living in Gaziantep, Tur- hope and expectation that
ex-Raqqa resident, who, like militiamen have advanced to- key, said the road to Mosul that will have demonstrable
ward the town, considered an was cut off late last year, and effects. On what order of
munications with a network IS bastion, leading many mili- prices have risen swiftly — magnitude, I think it’s diffi-
of family and acquaintances tants to send their families to gas is up 25 percent, meat up cult to say,” said Lisa Mona-
still in the city. Raqqa. nearly 70 percent, and sugar co, President Barack Obama’s
Al-Tamimi came across a di- An exile from al-Bab said prices have doubled. counterterrorism adviser.
low-level fighters there In Iraq, where Islamic State In the Iraqi city of Fallujah,
ers’ salary cuts in Raqqa: “On have begun to grumble, and has slowly been losing fighters who once made $400
account of the exceptional townspeople have overheard ground over the past year, a month aren’t being paid
circumstances the Islamic Islamic State officials discuss- the Iraqi government in Sep- at all and their food rations
have been cut to two meals a
day, according to a resident.
The account of the resident,
who spoke on condition of
anonymity for fear of death
at the hands of extremists,
was supported by that of an-
other family trapped in Fal-
lujah that said inhabitants
can only leave the city if they
pay $1,000 — a sum well be-
yond the means of most in
the Sunni-majority city that
was the first in Iraq to fall to
Islamic State in 2014.q