Mohammed bin Rashid amends certain provisions of law establishing Financial Audit Authority in Dubai

New norms on investigating violations, imposing disciplinary actions on those who breach

Dubai: In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has issued law amending certain provisions of establishing the Financial Audit Authority in Dubai.

The new law amends and replaces prior provisions with updated guidelines related to investigating violations and imposing disciplinary actions on employees in breach of regulations. It also mandates the formation of a Central Violations Committee within the Authority, defining its responsibilities and revising the formation of the Authority’s Central Grievance Committee.

The changes include the Director General of the Financial Audit Authority, or his authorised representative, may now take specific measures when investigating violations under the law. These measures include requesting that the entity involved suspends any employee suspected of a violation until the investigation concludes and reserving relevant papers, documents, and records used in the misconduct.

The investigation may be closed in specific cases, such as when the violation is unsubstantiated, insufficient evidence exists, or it is determined that the employee did not commit any violations as stipulated in this law.

The new law also allows the Director-General to close an investigation if the criminal offence involved is deemed minor, permitting disciplinary penalties to be imposed on the employee instead of referring him to the Public Prosecution. Criteria and guidelines for closing investigations into minor criminal offences will be established by a decision issued by the head of the Financial Audit Authority.

The updates to the law also specifies procedures including the referral of investigation papers to the Public Prosecution if a violation is found to involve a criminal offense punishable by law. The amendment grants the Director-General the authority to request the revocation of all decisions related to the violation, including nullifying their legal or financial effects from the date of issuance.

Disciplinary penalties

Additionally, the Director-General may request the imposition of disciplinary penalties on the offending employee, with the responsible official in the supervised entity required to issue the relevant administrative decision. This decision must be communicated to the Financial Audit Authority within 15 days of the disciplinary sanction request.

The authority’s Director General or his authorised representative, holds the power to request the Public Prosecution, when necessary or when sufficient evidence suggests a violation that constitutes a criminal offense, to take a number of precautionary measures. These measures include imposing a travel ban for up to three months on anyone suspected of committing an act that violates the provisions of this law, with the possibility of extending the ban for similar periods as needed. Additionally, they may request the seizure of funds and property owned by those suspected of a criminal offense or by individuals holding assets derived from such acts, restricting their disposal until the investigation is concluded.

Also, grievance against the Public Prosecution’s decision to impose a travel ban or seize funds and property must now be filed with the competent court. If the grievance is rejected, the individual may not file another until three months have passed from the date of the initial rejection, unless a significant reason justifies an earlier submission. Additionally, the Director General of the Financial Audit Authority, with approval from the head of the Authority, is authorized to settle with an employee who has committed an act constituting a criminal offense under this law. This settlement involves the recovery of funds related to the violation, along with any profits, interest, or benefits gained by the employee through misuse of these funds. Such a settlement closes the investigation and precludes referral to the Public Prosecution, though it does not exempt the employee from disciplinary proceedings.

Law imposes disciplinary measures on violating employees
Additionally, the Authority’s Director General is granted authority to review and assess the disciplinary penalties imposed on violating employees. If the Director General deems the sanction appropriate to the seriousness of the violation, the entity under the Authority's supervision will be notified to approve the sanction.

However, if the Director General considers the penalty insufficient, they may request the supervising official to escalate the disciplinary measure to reflect the severity of the offense. The Authority must be informed of the decision to intensify the disciplinary action within seven days of the request.

Central Violations Committee

The amended article mandates the establishment of an independent, permanent committee within the Financial Audit Authority, known as the "Central Violations Committee," by decision of the Authority’s head. The committee will look into specific types of violations, including cases where an entity fails to comply with the Authority's request to intensify disciplinary penalties on a violating employee. The Central Violations Committee holds the power to review and investigate such violations comprehensively. Based on its findings, the committee may choose to uphold, escalate, or dismiss the disciplinary action, especially if the violation is unsubstantiated, lack of sufficient evidence, or the employee is found not responsible for the offense.

The committee is also empowered to review and decide upon violations committed by officials of subject entities who hold the rank of Executive Director or equivalent, as per Dubai’s applicable legislation. Should such violations be confirmed, the committee will impose the appropriate disciplinary sanctions. In all cases, both the violating employee and the Executive Director-level officials have the right to challenge the committee's decision. They may submit a written grievance to the Authority’s Grievance Committee, as established under this law, within 15 days of receiving notification of the decision in question.

The new text of pertinent the law establishes a permanent independent body within the Financial Audit Authority, referred to as the "Grievance Committee." This committee is formed by a decision from the head of the Authority and is tasked with reviewing and adjudicating grievances filed by employees concerning sanctions imposed at the Authority’s request. It will also address objections raised by officials of subject entities against decisions made by the Central Violations Committee.

The law stipulates that the head of the Financial Audit Authority will issue a decision outlining the operational framework, powers, and procedures of the Grievance Committee. Importantly, the decisions rendered by this committee on the grievances submitted are deemed final and cannot be appealed through any administrative channels, including objections to the Central Grievance Committee for Dubai Government employees as regulated by the Executive Council's decision regarding the Central Grievance Committee for Dubai Government employees, while retaining the right of the complainant to resort to the judiciary.

The new amendments are designed to empower the Authority in fulfilling its supervisory responsibilities effectively and to enhance its role in addressing certain financial violations that constitute offenses against public funds. These changes aim to reinforce the Authority's objectives as an independent entity dedicated to safeguarding public resources, ensuring their lawful use, and promoting effective management.

Furthermore, the amendments strive to strengthen the principles of accountability, transparency, and integrity, while actively combating financial and administrative corruption. By providing professional and innovative audit services that deliver high added value, the Authority seeks to bolster public trust and contribute to the realization of the Emirate of Dubai's strategic vision.