The amendments to the provisions of the law establishing the Financial Control Authority aim to enhance the role of the Authority in fully exercising its control duties and applying alternatives to address some financial violations that represent an attack on public funds.
Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, issued a statement. President of the UAE, Prime Minister, In his capacity as Ruler of the Emirate of Dubai, Law No. (24) of 2024. The issued law includes amending some provisions of Law No. (4) of 2018 establishing the Audit Authority Finance in Dubai. This law shall be effective from the date of its issuance, and shall be published in the Official Gazette.
The law included amending the texts of Articles (34), (35) and (36) of the original law, so that new texts would replace them related to the procedures for investigating violations and imposing disciplinary penalties on violating employees, in addition to forming the Central Violations Committee in the agency and defining its powers, in addition to amending the formation of the Grievances Committee in the agency.
Investigation of violations
According to the new text of Article (34) of Law No. (24) of 2024, the Director General of the Financial Control Authority or his delegate, when the Authority conducts an investigation into any of the violations committed in accordance with its provisions, has the right to take one or more measures and procedures, such as requesting the subject entity to suspend the employee suspected of committing the violation from work until the investigation is completed, and to seize the papers, documents and records used in committing the violation.
He may also close the investigation in specific cases, such as proving the invalidity of the violation, or insufficient evidence, or not proving that the employee committed any of the violations stipulated in this law.
The new law stipulates that the Director General may close the investigation if the violating acts that involve a criminal offence are of minor importance, such that disciplinary penalties may be imposed on the violating employee instead of referring him to the Public Prosecution, with the criteria and controls for closing the investigation into these acts being determined by a decision of the Chairman of the Financial Control Authority.
The procedures and measures also included referring the investigation papers to the Public Prosecution if the investigation results in the existence of a criminal offence punishable by law. The amendment stated that the Director General of the Authority may request the withdrawal of all decisions related to the violation, and the cancellation of the legal or financial consequences of these decisions, as of the date of issuance of those decisions. He may request the imposition of disciplinary penalties on the violating employee, and the official of the entity subject to the Authority’s oversight must issue the administrative decision to impose the appropriate disciplinary penalty on this employee and notify the Financial Control Authority of the decision within 15 days from the date of the request to impose the disciplinary penalty.
The powers of the Director General of the Financial Control Authority or his delegate, when the Authority is investigating any of the violations committed, include requesting the Public Prosecution to take a number of precautionary measures and procedures when necessary or when there is sufficient evidence of the commission of the violation that constitutes a criminal offence, such as: preventing anyone suspected of committing any act that constitutes a violation in accordance with the provisions of this law from travelling, for a period not exceeding three months until the investigations are completed.
He may also request an extension of this ban for similar periods if necessary, in addition to seizing the funds and properties of anyone suspected of committing a criminal offence, as a result of committing any of the violating acts in accordance with the provisions of this law, or anyone in possession of funds and properties resulting from these violating acts, with a prohibition on disposing of them until the investigation into the violation is completed.
According to the new text of Article (34) of Law No. (24) of 2024, a grievance against the Public Prosecution’s decision to ban travel or seize funds and property may be filed before the competent court. If the grievance is rejected, the person whose grievance was rejected may not file a new grievance until three months have passed from the date of rejection of the grievance, unless a serious reason arises that requires filing the grievance before the expiry of that period.
The Director General of the Financial Control Authority may, after the approval of the Chairman of the Authority, reconcile with the employee who committed any of the acts that constitute a criminal offense in accordance with the provisions of this law, in exchange for recovering the funds subject to the violation, in addition to any profits, interest or any other benefits obtained by the employee as a result of his exploitation of those funds. This reconciliation results in preserving the investigation and not referring it to the Public Prosecution, and the reconciliation shall not, in any case, prevent the employee from taking disciplinary action.
Imposing disciplinary sanctions on violating employees
According to the new text of Article (35) of Law No. (24) of 2024, related to imposing disciplinary penalties on violating employees, the Director General of the Financial Control Authority has the right, if he deems that the disciplinary penalty imposed on the violating employee is proportionate to the seriousness of the violation committed, to notify the entity subject to the Authority’s oversight of the approval of the decision regarding that disciplinary penalty.
However, if the Director General deems that the disciplinary penalty is not proportionate to the seriousness of the violation, he may request the official of the subject entity to increase the disciplinary penalty so that it becomes proportionate to the seriousness of the violation. The official of the entity must notify the Financial Control Authority of the decision issued regarding the increase in the disciplinary penalty within seven days from the date of the request. If the official of the entity does not respond to this request, the violation will be referred to the Central Violations Committee for consideration and adjudication.
Central Violations Committee
The new article of the law stipulates the formation of the “Central Violations Committee” by a decision from the head of the Financial Control Authority. It is a permanent, independent committee that is responsible for examining and adjudicating a number of violations, including:
1- Violations in which the subject entity refuses to implement the Financial Control Authority’s request to impose a harsher disciplinary penalty on the violating employee. In this case, the Central Violations Committee has the authority to reconsider and investigate the violation, as it can uphold the imposed penalty, tighten it, or close the investigation if the violation is not proven true or the evidence is insufficient.
The Central Violations Committee is also responsible for examining violations committed by officials of subject entities who hold the rank of Executive Director or its equivalent, in accordance with the legislation in force in the Emirate of Dubai, and imposing the appropriate disciplinary penalty against them if the violation is proven. The provisions of reconciliation and measures specified in this law apply to them.
In all cases, the violating employee or the official in the subject entity with the rank of executive director has the right to object to the decision of the Central Violations Committee by submitting a written grievance to the Grievance Committee in the Authority within 15 days from the date of notification.
Grievance Committee
Article (36) of the amended law stipulates the formation of a permanent independent committee in the Financial Control Authority under the name of the “Grievances Committee”, which is established by a decision of the Authority’s Chairman, and is responsible for examining grievances and objections submitted by employees regarding the penalties imposed on them based on the Authority’s request, in addition to objections submitted by officials of subject entities against the decisions of the Central Violations Committee.
The decision of the Chairman of the Financial Audit Authority determines the mechanism of work of the Grievances Committee, its powers, and the procedures to be followed before it. Its decisions are final and cannot be appealed by any administrative means, including objection before the Central Grievances Committee for Dubai Government Employees established pursuant to Executive Council Resolution No. (41) of 2015, with the right of the complainant to resort to the judiciary.
