Iraq presidency passes provincial powers law

BAGHDAD (Reuters) - A law paving the way for fresh local elections, seen as vital for reconciliation among Iraq's warring political factions, will be enacted soon, the country's presidential council said on Wednesday.

Provincial elections are seen as a chance to draw more disenfranchised Iraqis, especially minority Sunni Arabs, into the political process and away from the insurgency and sectarian violence that has killed tens of thousands in five years of war.

The passage of Iraq's provincial powers law, which will define the relationship between Iraq's 18 provinces and the central government, had been held up by objections from presidential council member Vice President Adel Abdul-Mahdi.

"The presidential council has decided to withdraw its objections on the provincial powers law and (it) will be sent to the Justice Ministry to be published in the Iraqi gazette," a statement from Iraq's presidency said.

The unexpected announcement by the council, made up of Iraq's president and two vice-presidents, came as a two-day reconciliation conference in Baghdad came to an anti-climactic end after major blocs boycotted the poorly attended event.

Prime Minister Nuri al-Maliki had called the meeting Iraq's "lifeboat" but it ended with no major announcements or recommendations after the Accordance Front, the main Sunni Arab bloc, and other parties withdrew.

The provincial powers law is seen by Iraqi officials as a key step before a date can be set for provincial polls, due to be held by October 1. Many Sunni Arabs boycotted similar provincial polls in 2005.

Legal bills become law once they are signed off by all three members of the council and subsequently published in Iraq's official gazette, a process which typically takes a few days.

The presidency gave no reasons for its change of heart, but added that it would work with parliament on amendments to the law at a later date.

Abdul-Mahdi's suggestions for revision included removing the right of the central government to remove the provincial governor and dissolve the provincial government.

The law was one of three passed by parliament in February, including the 2008 budget and an amnesty law that could lead to the release of thousands of mainly Sunni Arab prisoners from Iraqi custody.

Washington hailed the passage of the bills on February 14 as a major legislative breakthrough and a boost for reconciliation between Iraq's divided communities, particularly majority Shi'ites and Sunni Arabs.

(Reporting by Mohammed Abbas; Editing by Janet Lawrence)