Abu Dhabi, UAETuesday 27 October 2020

New law strengthens financial regulations in Abu Dhabi

Decree gives Abu Dhabi Accountability Authority power to closely monitor financial spending in government and partly government-owned businesses

The government of Abu Dhabi has played an integral role in both developing and supporting the SME sector. Victor Besa / The National.
The government of Abu Dhabi has played an integral role in both developing and supporting the SME sector. Victor Besa / The National.

The Abu Dhabi Accountability Authority, an organisation that monitors the financial spending of government bodies and companies, has been given more power after a law was passed on Thursday.

The new decree, issued by President Sheikh Khalifa, gives ADAA the authority to monitor the financial activities of government organisations as well as associated companies and projects in real time.

Previously, it only had the power to review the financial results of government bodies and partly government-owned businesses.

All senior officials who join or leave government departments will now need financial clearance from ADAA.

The new law also gives the Authority the right to protect informants and witnesses, to prevent anyone who flags an issue internally.

More government departments, local councils and all companies or projects in which the government owns a 25 per cent share - up from 50 per cent - will now be financially monitored by ADAA.

The new law will help organisations manage public funds more prudently.

It is based on the best international laws in accounting and transparency.

The Authority is expected to explain and clarify all the clauses of the law to relevant departments and organisations.

Introduction programmes will be organised to help officials understand and interpret the law clearly.

ADAA was set up in December 2008 to promote accountability and transparency in the public sector.

The authority is tasked with ensuring government entities use their resources and funds efficiently, effectively, economically, ethically and in line with the emirate's overall vision.

It also has a training centre, where Emirati graduates are taught to audit. The authority audits government bodies, investigates corruption and sets up anti-fraud programmes.

In 2011, ADAA was appointed to the advisory council of the International Forum of Independent Audit Regulators, making the UAE the first Arab member.

The authority is a financially and administratively independent body that works directly beneath Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.

Updated: September 17, 2020 07:11 PM

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