New law sets up accountability body in Abu Dhabi
New law sets up accountability body in Abu Dhabi
Abu Dhabi: President His Highness Shaikh Khalifa Bin Zayed Al Nahyan has issued a law setting up an accountability body in the emirate to ensure accuracy of financial reports and promote transparency.
In his capacity as the Ruler of Abu Dhabi, the President issued law No 14 of 2008 establishing the Abu Dhabi Accountability Authority as an independent corporate body that will replace the Financial Control Authority, and report directly to the Crown Prince of Abu Dhabi.
Under the law, the newly established body may set up branches in the emirate by a resolution from the Crown Prince upon recommendation of its Chairman.
The new entity aims to ensure the accuracy of fin-ancial reports and promote the principles of accountability and transparency.
The 28-article law contains definitions, objectives, subject entities, powers, function and duties. Other acts include financial resources, violations and disciplinary actions and final provisions.
Financial resources
The authority's financial resources come from annual budgets allocated to it, funds collected for services provided to non subject entities and any other financial resources, which are consistent with the objectives of the authority and approved by the Crown Prince.
The authority will exercise its functions, duties and responsibilities at local departments, local councils and authorities and other similar entities.
It also performs its functions at institutions, companies and projects in which the government's share is not less than 50 per cent and also on the subsidiaries of these institutions, companies and projects.
The Crown Prince may instruct the authority to exercise its powers on any entity in which the government's share is less than the above mentioned 50 per cent or on any entity which is given donations or grants by the government and to submit a report on what it discovers in this respect.
The authority will have an Emirati chairman to be appointed by an Emiri Decree, recommended by the Crown Prince. He shall be appointed with the rank of a head of government department.
The authority will have a deputy chairman, also a UAE citizen, to be appointed by the chairman in a position that is equivalent to an undersecretary of a government department, and will act as the chairman in his absence.
The chairman and his deputy may be paid a special allowance by a resolution of the Crown Prince and in the amount he deems suitable.
The chairman will exercise the responsibilities of preparing strategies, annual plans, budgets and accounts of the authority for approval by the Crown Prince before presenting them to the Executive Council. He will also present the authority report related to the audit of the government consolidated financial reports to the Crown Prince.
The chairman will also submit an annual report on the authority's activities to the Crown Prince and the Executive Council, as well as issues on the organisational structure of the authority after being approved by the Crown Prince.
Periodical reports must be submitted to the Crown Prince on the results of the authority's activities.
The authority will have an adequate number of employees with proper qualifications, experience and degrees that allow them to discharge their duties and responsibilities properly.
The authority's technical staff are not subject to termination, and internal rules and regulations shall determine the procedures and rules for their work, discipline and discharge.
Any provision that contradicts this law will be annulled.
This law will take effect from the date of its publishing in the official gazette.
Goals: Key functions
Objectives of the authority
- Ensure that resources and funds of the subject entities are managed, collected and expended efficiently, effectively and economically.
- Ensure the accuracy of financial reports and the compliance of the subject entities with the relevant laws, rules and regulations and governance guidelines as outlined in this Law.
- Promote the principles of accountability and transparency at the subject entities.
Responsibilities and duties
- Audit government financial reports and those of the subject entities.
- Review the performance and risks, and that the authority may from time to time:
- Examine the efficiency, effectiveness and economy of the financial and operational activities of subject entities.
- Ensure the compliance of subject entities with laws, regulations, rules and governance guidelines.
- Examine violations investigated by subject entities.
- Giving advice and recommendations and carrying out any other procedures and services for subject entities as the chairman deems reasonable and appropriate.
- Train and qualify UAE National graduates of universities and institutions and establish necessary training centres.
- Issue regulations, rules, guidelines and standards that enable the authority to discharge its duties by a resolution of the chairman.
- Carry out any other functions and duties and responsibilities requested by the Crown Prince.
Employee conduct
The chairman, his deputy and other employees of the authority must not hold any other public or private employment and must not engage in any financial or commercial or professional business that may conflict with their functions and duties or distort their appearance and integrity.
They cannot either hold the position of members of the boards of directors or any of the subject entities. The chairman must act independently in the exercise and performance of his functions, duties and must be neutral and objective. The chairman must ensure that all employees of the authority maintain proper standards of independence.
