Dubai: The Crown Prince of Dubai and Chairman of The Executive Council of Dubai, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, has issued Executive Council Resolution No. (53) of 2022 which amends Article No. (25) of Executive Council Resolution No. (5) of 2021, which pertains to Executive Regulation of Law No. (1) of 2016 on the Financial Regulations of the Government of Dubai.
ARTICLE RELATED TO PUBLIC FUND PAYMENTS
Article No. (25) of Executive Council Resolution No. (5) of 2021 discusses about payment of outstanding public funds by installments, where the head of a government entity or their authorized representative has the authority to allow payment by installments of any public funds outlined in a list submitted by such entity to the Department of Finance (DoF).
The Resolution states that, payment of public funds by installments is subject to several conditions, including:
- Public funds must be due by the date on which the application for payment by installment is submitted and
- the amount of public funds to be paid by installments must not be less than the minimum amount prescribed by the DoF.
Moreover, the applicant is expected to prove their inability to pay the total outstanding amounts in one payment. The applicant must also make an initial payment of at least 25 percent of the outstanding amount of public funds requested to be paid by installments.
THE AMENDMENT
As per the amendment made, if an applicant cannot make the minimum payment of 25 percent of the outstanding amount before applying for the payment by installments, the head of the government entity or their authorized representative may reduce the minimum payment after reviewing the reasons behind the request.
Meanwhile, other related conditions which would remain unaffected would be;
- The installment period must not exceed five years, or the period in which the public funds are due, whichever is shorter
- Installments must be paid by bank cheques or by providing other guarantees or security as prescribed by the DoF.
- Any other conditions set by the DoF must be satisfied
The new Resolution reveals that an applicant for payment by installments must, within 15 days from being notified of the decision approving the application for payment by installments, submit the guarantees or security prescribed by the DoF in respect of the total outstanding amounts.
The guarantees or security must be valid throughout the installment period, until full payment is made.
If an applicant fails to pay the installments by the prescribed deadlines, the decision approving the application for payment by installments will be deemed null and void.
The Resolution shall be effective from the date of its publication in the Official Gazette.