President HH Sheikh Mohamed bin Zayed Al Nahyan has issued Federal Decree-Law No. (56) of 2023 to establish the UAE Accountability Authority. This new authority will replace the Supreme Audit Institution and will directly report to the President.
Its primary objective is to maintain and enhance the integrity of public finances in the country. The authority will serve as the highest body for financial control, auditing, integrity, and transparency. The decree outlines the authority’s functions, emphasising its role in supervising financial, accounting, and operational activities within entities under its oversight. This supervision aims to combat financial and administrative corruption, enhance risk management systems, detect issues, and hold wrongdoers accountable.
The authority aims to instil integrity, accountability, transparency, and good governance within the Federal Government and the entities it oversees. Its responsibilities include:
- Reviewing and auditing the Consolidated Annual Report of the federal government.
- Auditing financial statements of entities under its control.
- Evaluating the effectiveness of their internal control systems.
Under this decree, heads of supervised entities and relevant ministers must implement the authority’s findings within a specified timeframe. The authority is also responsible for reviewing complaints and investigating misappropriation of funds, conflicts of interest, misuse of authority, and other forms of corruption.
Furthermore, the authority is empowered to conduct administrative investigations, protect whistleblowers and witnesses, recover public funds, and define financial and administrative violations. It has the authority to access documents, data, electronic systems, and external audit reports of supervised entities.
Procedures for conducting administrative investigations are outlined, including imposing penalties on violating employees and referring investigation documents to the competent prosecution of suspected criminal offences. The decree also allows incentives for individuals providing substantial information on financial and administrative corruption and offers exemptions from penalties for those reporting their involvement before disclosure.
Entities falling under the authority’s purview and the roles of supervisory personnel, clients, and auditors are defined. The decree outlines comprehensive functions and obligations for these entities under the authority’s supervision.
