Introduction to the UAE Accountability Authority: A New Era in Financial Integrity and Governance

President His Highness Sheikh Mohamed bin Zayed Al Nahyan enacted Federal Decree-Law No. (56) of 2023, announcing the establishment of the UAE Accountability Authority, to officially replace the former Supreme Audit Institution established by Federal Law No. (8) of 2011, and all rights, assets and obligations.

Applicable Legislation for the UAE Accountability Authority as defined by Article 41

The UAE Accountability Authority operates under a specialized legal framework distinct from the general laws and regulations of the federal government. Key aspects of this framework include:

1. Primary Legislation: The Federal Decree-Law No. (56) of 2023 is the foundational legal document that outlines the Authority’s mandate, powers, and responsibilities.
2. Specific Implementing Provisions: The Authority is governed by targeted decisions, rules, and regulations issued specifically for its operation, ensuring a tailored approach to its unique role in financial oversight.
3. Direct Presidential Oversight: Reporting directly to His Highness Sheikh Mohamed bin Zayed Al Nahyan, the President of the UAE, highlights the Authority’s critical importance and independence in governance.
4. Focused Legal Framework: This bespoke legal structure is designed to enable the Authority to effectively manage its duties in financial control, auditing, integrity, and transparency.
5. Alignment with National Goals: Despite its unique legal framework, the Authority’s activities are in line with the UAE’s broader objectives of promoting transparency, accountability, and good governance.

Key Objectives and Functions of the Authority

1. Supreme Authority for Financial Control: The UAE Accountability Authority is now the foremost entity for financial control, auditing, integrity, and transparency in the UAE. Its primary mission is to safeguard and strengthen the integrity of public finances.
2. Comprehensive Oversight Role: The Authority is tasked with overseeing financial, accounting, and operational activities in entities under its jurisdiction. This involves combating financial and administrative corruption, enhancing risk management, and holding perpetrators accountable. Article (38) thus defines a comprehensive range of financial and administrative violations, emphasizing the Authority’s role in overseeing and maintaining the integrity of financial and administrative processes within regulated entities.
3. Enhancing Good Governance: A significant goal is to instill and enhance integrity, accountability, transparency, and good governance within the Federal Government and related entities. This is crucial for bolstering the nation’s reputation and trust in its financial and economic systems.
4. Audit Responsibilities: The Authority is responsible for reviewing and auditing the Consolidated Annual Report of the federal government, along with separate and combined annual financial statements of entities under its control.
5. Assessing Internal Control Systems: It assesses the efficiency and effectiveness of internal controls over financial and operational operations, and sets supreme policies on integrity and anti-corruption measures.
6. Implementation of Supervisory Findings: Entities under the Authority’s oversight, along with relevant ministers, are mandated to implement its findings and provide responses within a specified timeframe.
7. Administrative Investigations – Article (24): The Authority will conduct administrative investigations for the Public Interests into various misconducts, including misappropriation of funds, conflicts of interest, and misuse of authority.
8. Preventive Measures Article (23) and Whistleblower Protection Article (26): It implements preventive measures, controls for administrative investigations, Article (27) establishes mechanisms for protecting and granting moral or material incentive to whistleblowers and witnesses assisting the Authority.
9. Audit and Review Authority: The Authority has extensive powers to audit, examine, and review various documents, data, and electronic systems of the entities under its purview.
10. Administrative and Legal Procedures: It outlines procedures for conducting administrative investigations, imposing disciplinary penalties under Article (38) Financial and Administrative Violations recovering public funds, and refers cases to prosecution if criminal offenses are suspected.
11. Incentives and Exemptions: The Authority can provide incentives to individuals aiding in uncovering corruption and can grant exemptions from penalties to collaborators reporting their involvement in corruption.
12. Settlements and Public Interest Information – Article (29): It is authorized to preserve administrative investigations upon reaching settlements and can provide information of public interest.

The Abu Dhabi Accountability Authority (ADAA) – a member of the International Association of Anti-Corruption Authorities (IAACA).

This strategic alliance aligns with ADAA’s commitment to uphold principles of integrity, transparency, accountability, and professional ethics in governance. Joining IAACA, an influential global anti-corruption organization, allows ADAA to extend its reach in promoting these values. IAACA, dedicated to implementing the United Nations Convention against Corruption, facilitates international collaboration in combating corruption. ADAA’s involvement with IAACA signifies a significant step in enhancing its capacity for effective governance, ensuring the efficient management of public resources, and strengthening its global partnerships. This membership not only reinforces ADAA’s dedication to robust governance in Abu Dhabi’s public sector but also contributes to the broader international effort in eradicating corruption and fostering best practices worldwide.

Conclusion: A Step Towards Enhanced Transparency and Accountability

The establishment of the UAE Accountability Authority marks a pivotal moment in the nation’s commitment to upholding the highest standards of financial integrity and governance. With its comprehensive mandate and robust powers, the Authority is poised to play a crucial role in transforming the financial and administrative landscape of the UAE, ensuring transparency, accountability, and the protection of public interests. This move is a clear testament to the UAE’s dedication to fostering an environment of trust and integrity in its financial and economic systems, setting a benchmark for good governance globally and as a member of the International Association of Anti-Corruption Authorities (IAACA).

Should you have any questions or may need a legal opinion or advice, please feel free to reach out to our Managing Partner, Mr. Ashraf El Motei, at [email protected].