Admitting the Kurdistan government is affected by corruption, he said the restructuring will aim to improve governance and increase transparency.

"Our experience in this field is limited and this is why we have called in an international company (PricewaterhouseCoopers) to help us prepare an action plan," he said in a statement.

"Pricewaterhouse is a well known international company which works in 150 countries and can eliminate corruption," said Barzani, whose Kurdish Democratic Party is campaigning for regional elections on July 25.

"The strategy is one of good and transparent governance to eliminate administrative and financial corruption from regional government institutions," he said.

Barzani said proposals include the launch of an anti-corruption unit.

But he warned: "We cannot fight this phenomenon just by creating a (special) body and taking legal action against one or two people. We need a general strategy."