Hamdan bin Mohammed amends resolution on payment of overdue public funds in installments
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, issued Executive Council Resolution No. (53) of 2022 amending Article No. (25) of Resolution No. ° (5) of the Executive Council. ) of 2021, which relates to the Executive Regulation of the Government of Dubai Financial Regulation Act No (1) of 2016.
Section 25 deals with the installment payment of unpaid public funds, where the head of a government entity or his authorized representative has the power to authorize the installment payment of all public funds indicated in a list submitted by that entity to the Ministry of Finance (DoF).
According to the resolution, the payment of public funds by installments is subject to several conditions, including: the public funds must be due on the date on which the request for payment by installments 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. In addition, the applicant must prove his inability to pay the total outstanding amounts in one installment. The applicant must also make an initial payment of at least 25% of the remaining amount of public funds requested to be paid in installments.
According to the amended resolution, if an applicant cannot make the minimum payment of 25% of the outstanding amount before applying for the installment payment, the head of the government entity or his authorized representative may reduce the minimum payment after considering the reasons for the payment. payment request.
Other conditions that remain unchanged are as follows: The disbursement period must not exceed five years, or the period during which public funds are due, whichever is shorter. Installments must be paid by bank checks or by furnishing other guarantees or securities prescribed by the DoF. All other conditions set by the DoF must be met.
According to the resolution, a progress payment applicant must, within 15 days of notification of the decision approving the progress payment request, submit DoF-mandated guarantees or guarantees for the total amount outstanding. Guarantees or sureties must be valid for the entire duration of the installments, until full payment. If an applicant does not pay the installments within the prescribed time, the decision approving the request for payment by installments will be deemed null and void.
The resolution will enter into force from the date of its publication in the Official Gazette.