UAE Accountability Authority established; will replace the Supreme Audit Institution and report directly to the President

The UAE Accountability Authority was established by a federal decree-law signed by the president of the UAE, His Highness Sheikh Mohamed bin Zayed Al Nahyan. This body, which will report directly to the President, will take the position of the Supreme Audit Institution. It will be the highest authority for financial management, auditing, integrity, and openness in the nation, to preserve and improve the integrity of public funds.

Additionally, in order to combat financial and administrative corruption, strengthen its risk management systems, maximise its detection, limit its causes, and hold offenders accountable, the decree regulates the UAE Accountability Authority's functions and its role in protecting public funds through oversight of financial, accounting, and operational activities in entities under its purview. The authority's objectives are to improve good governance, accountability, integrity, and transparency in the federal government and the institutions under its jurisdiction, as stated in the decree.

Taking into account the laws and regulations that establish these entities, the authority's functions include reviewing, auditing, and providing an opinion on the federal government's Consolidated Annual Report. It also audits the separate and combined annual financial statements of the entities under its control.

The President of the United Arab Emirates must approve the responsibilities, which also include determining the ultimate policies on integrity and combating financial and administrative corruption, as well as evaluating the efficacy and efficiency of internal control systems for financial and operational activities.

The decree mandates that the officials in charge of entities under authority's supervision, as well as the pertinent ministries, must put the authority's findings into practice. Under the terms of the notification, they have 30 days to respond to the Authority, with the possibility of an extension beyond that.

The decree states that the Authority will be reviewing and conducting administrative investigations into complaints and reports pertaining to any misuse of authority, conflicts of interest, disclosure of official data and information, or exploitation of public office for private gain or the benefit of third parties, as well as any misappropriation of funds and assets belonging to the regulated entities.

Implementing preventive measures, controls for administrative investigations, financial disclosures, identifying robust mechanisms to safeguard witnesses and whistleblowers, and initiating initiatives to recover public funds are all part of the Authority's duties. It also defines financial and administrative violations in detail, including decisions about acting or not, as well as statements that could potentially harm the nation's reputation and its financial and economic interests.

The Authority is authorised to audit, inspect, and evaluate any documents, data, information, reports, digital records, or electronic systems of the subject businesses in order to guarantee appropriate accounting and governance standards. In order to evaluate the security of the official data and information of the entities and persons collaborating with them, as well as the entities themselves, access to the external audit reports and electronic systems and programmes is also permitted, in accordance with the applicable authorities.

The Decree further specifies how an administrative inquiry should be carried out, after which the Authority notifies the body under its supervision or the appropriate authority to discipline the employee who violated the rules. The goal should be to restore public monies that the offending party wrongfully got, and they should also be held accountable for any harm they may have caused. Within 15 days following the date of notice, decisions about the measures the entity has imposed must be presented to the Authority. If the inquiry raises any suspicions of a criminal offence, the procedures also provide for the Authority to transmit administrative investigation papers to the capable prosecution. The guidelines and methods for carrying out an administrative investigation are included in the anti-corruption processes regulation.

The law allows for the payment of rewards, both monetary and moral, to anybody who contributes significant information that helps identify an offence involving financial and administrative corruption. The order lays out the steps for exempting collaborators and partners who disclose their financial and administrative corruption participation before it is made public from the penalties that are stipulated. It also permits the dissemination of material of public interest and the maintenance of the administrative inquiry following a settlement that recovers public cash.