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Law No.

3/2006

LAW ON PUBLIC FINANCES


Introduction and Title

(a)

This Law provides for the principles and procedures for control and management of the finances and property of the State and establishes financial and other principles and procedures related to the finances and property of the State. (b) This Law shall be called the Law on Public Finances.
CHAPTER 1 PUBLIC MONEYS AND PUBLIC PROPERTY

Payment and expenditure of public moneys

No liability for any expenditure of public moneys shall be incurred by any person except in the following circumstances: (1) public moneys to meet the liability are lawfully available; and (2) the incurring of the liability has been authorised in accordance with the Public Finance Regulations. (b) No payment of public moneys shall be made by any person except in the following circumstances: (1) public moneys to make the payment are lawfully available; and (2) the payment has been authorised in accordance with Public Finance Regulations. No public moneys shall be lent to any person unless the loan has been approved by the President, or the loan being of a class of loan that has been approved by the President, has been approved by the Minister. Unless this Law or another Law states otherwise, Public moneys may be lent as loans only in conformity to and within the limits set out in the Public Finance Regulations and only for public purposes in accordance with the Public Finance Regulations. (b) For the purposes of this Law, public purposes means purposes that include the following interests: (1) The entire society or a substantial part thereof should benefit from it; (2) It is directly related to responsibilities that need to be carried out by being a government; (3) One of the main reasons for carrying it out is not something that would amount to protecting the interests of a particular person; (4) It is something that would assist in attaining public health, public security, public order, peace and tranquility, national progress or national well-being. (c) Loans must be given by the State in accordance with a policy (a)

(a)

Not to lend public moneys except for an approved loan

Lending public moneys as loans

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set in a publicized fair manner. The circumstances in which a loan granted by the State can be pardoned must be specified in such policies. (d) The State may provide money as a loan only with the permission for the granting of such loan from the President. The written application submitted for permission from the President for the granting of a loan must include the reason for granting the loan, the principal amount of the loan, interest rate, other charges if any, and the procedure for the repayment of the loan. (e) Where payments are not made regularly for the repayment of a loan granted by the State, the Minister must take all available measures in the matter. (f) The Minister shall, as per the Public Finance Regulations, maintain information and statements concerning any public moneys being lent as a loan or which had been lent as a loan to any person by the State.
Borrowings and guarantees by the State

(a)

Any application to borrow money by or on behalf of the State or to give a guarantee by the State shall be made and submitted to the Minister in accordance with the Public Finance Regulations. (b) Upon receipt of an application by the Minister as stated in subsection (a) of this section, it shall be the responsibility of the Minister to attend to matters relating to such borrowing as required by the Law. (c) Money may be borrowed by the State and guarantees may be given by the Government only as maybe determined by the President in accordance with the Constitution, upon submission by the Minister having considered the effects and the consequences to the economy of the country and to public finances of such borrowing or giving of such guarantee. (d) If money is borrowed by the State, the principal amount borrowed, the interest accruing for the same and other expenses of borrowing the money, must be paid from the Consolidated Revenue Fund as appropriated and passed in the budget. (e) Each time money is borrowed by the State as per subsection (c) of this section, information relating to the borrowing shall, within 30 days from the date of the borrowing, be sent to the Peoples Majlis by the Minister. (f) The information sent to the Peoples Majlis pursuant to subsection (e) of this section shall state the purpose of the borrowing, benefit to society, the principal amount borrowed, the interest accruing for the same and other expenses of borrowing the money. A copy of the report on the study

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relating to the borrowing shall also be sent to the Peoples Majlis.


Loans and guarantees to be recorded

The Minister shall, according to procedures laid down by the Auditor-General, establish and maintain a written record and account of moneys borrowed by the State and any guarantee, indemnity or undertaking given by the State. Public property may be given, sold, leased, disposed of, mortgaged or destroyed only in accordance with this Law and regulations made hereunder, in a manner determined by the President upon a recommendation made to the President by the Minister. All such acts shall be carried out by the accountable officer designated under this Law in every government agency. If an account for goods or services supplied in a financial year is presented for payment to the Minister within 30 working days after the end of that financial year, the Minister may approve the payment of that account from moneys appropriated in the budget for that financial year or from the Advance Fund in accordance with subsection 23(a) of this Law. The amount of any loss of or deficiency in public moneys, or any irrecoverable public moneys, or the value of any lost, destroyed, damaged or obsolete public property, may be written off by the Minister, according to procedures laid down by the AuditorGeneral, after having recorded it in the appropriate accounts and having obtained the approval of the President. Payments may be made from public moneys to a person or party as a grace payment in a manner that does not amount to a payment for a liability under law or a payment for a legal obligation. (b) A payment may be made as a grace payment from public moneys to a person or to a party under subsection (a) of this section only if making of a contribution by the State to the person or party in loss or misfortune is deemed just or of social interest by the Government. Alternatively, such a payment may be made, if salvaging a person or a party in financial difficulty is, in addition to being in the interest of an appropriate percentage of the public, deemed by the Government to be the most fair and just course of action in the circumstance. (c) Any grace payment under subsections (a) and (b) of this section shall be made in accordance with the Public Finance

Sale of and dealing with public property to be authorised

Payments after end of financial year

Writing off

Grace payments

10 (a)

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Regulations by the Minister, under instructions from the President or with the approval of the President.
CHAPTER 2 PUBLIC BANK ACCOUNT Opening of Public Bank Account

11 All public moneys must be kept in the Public Bank Account, opened and maintained by the Minister and held with the Maldives Monetary Authority. On islands where no branch of the Maldives Monetary Authority exists, public moneys must be kept in a bank with which an account is held by the Maldives Monetary Authority. On islands where no such bank exists, public moneys must be kept in an account opened and maintained in accordance with section 12 of this Law. On islands where no such account exists, public moneys must be kept in a manner that provides safe custody of the same. 12 (a) On islands where neither a branch of the Maldives Monetary Authority nor a bank with which an account is held by the Maldives Monetary Authority exists, a government agency may open an account under section 11 of this Law with the written permission of the Minister. Such permission shall be given by the Minister only in the following instances: (1) the agency applying to open an account is an agency operating on an island where neither a branch of the Maldives Monetary Authority nor a bank with which an account is held by the Maldives Monetary Authority exists; or (2) the Minister is satisfied that the account is needed to hold grant aid or loan assistance moneys under the terms of a grant aid or loan assistance agreement and moneys that do not include public moneys. (b) A bank account opened under subsection (a) of this section must not be overdrawn.

Opening of an account with Maldives Monetary Authority or with another bank

Deposits into the Public Bank Account

13 All public moneys collected or received, other than an advance from a Public Fund, must be deposited into the Public Bank Account. If the money is collected or received on an island where there is no branch of the Maldives Monetary Authority, such money must be deposited in a bank with which an account is held by the Maldives Monetary Authority. A government agency operating on an island where there is no such bank shall deal with such money in accordance with section 11 of this Law. 14 All deposits into the Public Bank Account, except deposits of the principal of public moneys that have been invested under subsection

All deposits into the Public Bank Account to be

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accounted for

16(a) of this Law, must be accounted for in accordance with procedures laid down by the Auditor-General and details thereof shall be included in the accounts of Public Funds. 15 (a) No public moneys shall be withdrawn from the Public Bank Account except in the following circumstances:

Withdrawals from the Public Bank Account

(1) To invest, in accordance with this Law, public moneys that are not needed immediately as per section 16 of this Law; or (2) in accordance with a warrant authorizing expenditure from the Consolidated Revenue Fund as per section 20 of this Law; or (3) in accordance with a warrant authorizing expenditure from the Loans and Capital Works Fund as per section 22 of this Law; or (4) from the Advance Fund in accordance with subsection 23(a) of this Law; or (5) from the Trust Fund in accordance with the trust statement of a trust account. (b) All withdrawals from the Public Bank Account, except withdrawals made under subsection 16(a) of this Law, must be accounted for in accordance with procedures laid down by the Auditor-General and details thereof shall be included in the accounts of Public Funds.
Investment of moneys in the Public Bank Account that are not needed immediately

16 (a)

The Minister may withdraw from the Public Bank Account any public moneys that are not needed immediately and invest them, in accordance with international financial security standards, in any of the following ways (1) in securities issued or guaranteed by a foreign government or an international financial institution; (2) by placing the moneys on deposit with a bank approved by the Board of Directors of the Maldives Monetary Authority. (b) The Minister must maintain accounts of the public moneys invested under subsection (a) of this section in accordance with procedures laid down by the Auditor-General. (c) Any interest received from investments made under subsection (a) of this section must also be deposited into the Public Bank Account and must be dealt with in accordance with section 30 of this Law. Expenditure from the Public Bank Account of public moneys in the Consolidated Revenue Fund or the Loans and Capital Works Fund can be authorised only by the issuance of a

Warrants

17 (a)

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written warrant signed by the Minister. (b) The warrant stated in subsection (a) of this section must only be issued for an expenditure appropriated in the passed budget. (c) The warrant stated in subsection (a) of this section must be issued at the beginning of each financial year. Only one such warrant shall be issued per year. (d) The total expenditure authorised to be paid from the Consolidated Revenue Fund or the Loans and Capital Works Fund in a financial year by the warrant stated in subsection (a) of this section must not exceed the total expenditure appropriated in the budget from that Fund for that financial year. (e) A warrant issued as per subsection (a) of this section for a passed budget shall not be used for an expenditure once the said budget ceases to have effect except as provided in section 8 of this Law,
CHAPTER 3 Public Funds Accounting records for Public Funds

18 (a)

The Minister must establish and maintain, in accordance with procedures laid down by the Auditor-General, accounting records for the following Public Funds: (1) the Consolidated Revenue Fund; (2) the Loans and Capital Works Fund; (3) the Advance Fund; (4) the Trust Fund. (b) The sum of the amounts in the Public Funds must equal the sum of the public moneys in the Public Bank Account and any moneys that are invested under section 16 of this Law.

Payments into the Consolidated Revenue Fund

19 Unless another Law states otherwise, all public moneys must be paid into the Consolidated Revenue Fund except the following: (a) public moneys collected, received or held by a government agency on an island where neither a branch of the Maldives Monetary Authority nor a bank with which an account is held by the Maldives Monetary Authority exists or by a government agency operating overseas; (b) public moneys that section 21 of this Law states must be paid into the Loans and Capital Works Fund; (c) public moneys that section 24 of this Law states must be paid into the Advance Fund; (d) public moneys that subsection 27(a) of this Law states must be paid into accounts in the Trust Fund; (e) public moneys that section 30 of this Law states must be paid into the Interest Suspense Account.

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Payments from the Consolidated Revenue Fund

20 (a)

Payments into the Loans and Capital Works Fund

Public moneys must not be paid from the Consolidated Revenue Fund except in the following circumstances (1) in accordance with the budget passed by the Peoples Majlis for that year; or (2) in accordance with a Law that requires payments to be made out of the Consolidated Revenue Fund; or (3) for the purposes of making refunds of public moneys in accordance with the Public Finance Regulations. (b) Public moneys must not be paid from the Consolidated Revenue Fund unless a written warrant authorising expenditure is obtained. 21 The following public moneys must be paid into the Loans and Capital Works Fund (a) All moneys that are appropriated in accordance with the Public Finance Regulations to the Loans and Capital Works Fund from the Consolidated Revenue Fund for the purposes of being lent by the State, in accordance with the Public Finance Regulations, for public purposes stated in subsection 4(b) of this Law and for capital works. (b) Repayments of the principal of loans made from the Loans and Capital Works Fund. (c) Moneys from any sale of public property. (d) Moneys received as unconditional grant assistance for capital works by any person, including an international agency; (e) Moneys borrowed by, or loaned to, the State by any person whether for capital works or otherwise. 22 (a) Public moneys may be paid from the Loans and Capital Works Fund only in accordance with a passed budget. (b) Public moneys must not be paid from the Loans and Capital Works Fund except in accordance with a written warrant authorising expenditure. (c) If public moneys are paid into the Loans and Capital Works Fund for a specific purpose, such moneys must not be paid from the Fund except for that purpose. Payments may be made from the Advance Fund only for the following purposes (1) to make advances for the temporary financing of public services and capital works and to government agencies on islands where neither a branch of the Maldives Monetary Authority nor a bank with which an account is held by the Maldives Monetary Authority exists or to government agencies operating overseas; (2) to make payments where an urgent and unforseen need

Payments from the Loans and Capital Works Fund

Payments from the Advance Fund

23 (a)

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for a payment of public moneys arises; and (3) to make payments where the payment can not lawfully be made from any other of the Public Funds. (b) If any payments are made from the Advance Fund in accordance with subsection (a)(2) and subsection (a)(3) of this section, the Minister must include, in the budget for the next financial year, or in an addition to an already passed budget, an appropriation from the Consolidated Revenue Fund or the Loans and Capital Works Fund or both of public moneys, to the Advance Fund to repay those payments. (c) Public moneys must not be paid from the Advance Fund for any of the purposes stated in subsection (a) of this section unless a written authorization of the Minister is obtained and except in accordance with such authorization.
Payments into the Advance Fund

24

The following public moneys must be paid into the Advance Fund (a) Repayments of advances made from the Advance Fund under subsection 23(a)(1) of this Law; (b) Moneys appropriated and passed in the budget as stated in subsection 23(b) of this Law to repay any payments made from the Advance Fund under subsection 23(a)(2) and subsection 23(a)(3) of this Law. The Trust Fund consists of the Interest Suspense Account referred to in section 30 of this Law, any trust accounts that other Laws establish as part of the Trust Fund and the trust accounts stated in subsection (b) of this section. (b) The Trust Fund shall also include any trust accounts that are established from time to time for the following purposes (1) For holding public moneys appropriated and passed in the budget for specific public purposes; (2) For holding public moneys that the State holds for or on behalf of any person that is not a government agency; (3) For holding temporarily as public moneys, money received as conditional grants and money received as grant assistance, gift or donation for a specific public purpose; (4) For holding temporarily public money received until the purpose for which the money was received is identified; (5) All public moneys that have been appropriated and passed in a budget for a specific purpose of the trust account; (6) All public moneys received for a specific purpose of the trust account. (c) A trust account must not be established without the written

Composition of the Trust Fund

25 (a)

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permission of the Minister and except for a purpose stated in subsection (b) of this section.
Trust statements for trust accounts

26 (a)

When a trust account is established under this Law or another Law, a trust statement must be prepared for the account. (b) In this Law trust statement means a document prepared and signed by the Minister containing the name of the trust account that is established, its purpose, the type and sum of money deposited in it, expenses permitted from it, the person accountable for operating it and all other details required to be maintained in relation to the account in accordance with the Public Finance Regulations and which is deemed the most authoritative document in respect of the account containing the official details relating to the account. (c) A trust statement that is consistent with section 30 of this Law must be prepared for the Interest Suspense Account. (d) All trust statements must be prepared in accordance with the Public Finance Regulations. The Minister, in accordance with the Public Finance Regulations, may amend a trust statement.

Payments into trust accounts

27 Public moneys must not be paid into a trust account except in accordance with the trust statement for the account. 28 (a) Public moneys must not be paid from a trust account except in accordance with the trust statement for the account, and a trust account must not be overdrawn. (b) Public moneys must not be paid from a trust account except in one of the following ways: (1) if the account was established under another Law, in accordance with that Law and the trust statement for that account; (2) in the case of the Interest Suspense Account, in accordance with section 30 of this Law and the trust statement for that account; (3) if another trust account, in accordance with the trust statement for that account; The Minister has the authority to direct that a trust account established for a purpose stated in subsection 25(b) of this Law be closed if the purpose for which the account was established has been fulfilled or if the Minister is of the view that the purpose for which the account was established will not be fulfilled. (b) If the Minister directs that a trust account be closed, the balance of the public moneys in the account shall, after payment of the liabilities of the account, be paid out in

Payments from trust accounts

Closing trust accounts

29 (a)

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accordance with the provisions, if any, of the accounts trust statement that deal with the closure of the account. If the trust statement does not provide for the same, such money shall be paid into the Consolidated Revenue Fund.
Interest Suspense Account

30 (a)

As part of the Trust Fund there shall be an account called the Interest Suspense Account. (b) All interest received from investments made in accordance with section 16 of this Law shall be paid into the Interest Suspense Account. (c) The public moneys in the Interest Suspense Account must be paid from it into a Public Fund or into another trust account or accounts in accordance with the trust statement for the Interest Suspense Account, unless another Law states otherwise.
CHAPTER 4 Preparation and Submission of Budget

Preparation of budget and submitting to Minister

31 Every accountable government agency must, in accordance with the Public Finance Regulations and on or before the date set by the said Regulations, prepare and submit to the Minister a budget setting out for that financial year the estimated income of the agency, the estimated expenditure of the agency on recurrent expenses and on capital works. The duties under this section shall be carried out by the accountable officer designated under this Law in every government agency. 32 (a) For each financial year, the Minister must prepare and submit to the Peoples Majlis the annual State budget at least one month before the beginning of the financial year to which the budget relates. (b) The annual State budget, when being submitted as per subsection (a) of this section, must set out, under separate headings, the estimated expenditure of the State and the estimated income of the State for the financial year to which the budget relates and the expenditure of the State and the income of the State for the previous financial year. (c) The annual State budget, when being submitted as per subsection (a) of this section, must seek an appropriation of expenses for capital works from the Loans and Capital Works Fund; and an appropriation of recurrent expenses from the Consolidated Revenue Fund. (d) The annual State budget must, in relation to each accountable government agency, set out for the financial year a summary of the estimated income of the agency; and the estimated expenditure of the agency on recurrent expenses and on capital

Annual State budget

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works. The annual State budget must also include details of major expenditure estimated by accountable government agencies on recurrent expenses and on capital works. (e) In the event if a request for an appropriation of supplementary or excess funds to the budget is to be submitted to the Peoples Majlis, such request shall be prepared in the manner provided in this section for preparation of the budget and shall be submitted to the Peoples Majlis 1 month prior to the date on which such funds are required. (f) The annual State budget, when being submitted to the Peoples Majlis, must state the manner in which deficit will be financed by the State.
Transfer of appropriations on transfer of functions

33 If public moneys are appropriated to a particular accountable government agency for particular capital works or a particular public service; and the responsibility for those works or that service is transferred to another accountable government agency, the unexpended part of those appropriated moneys may, with the approval of the Minister, be transferred to the accountable government agency to which such responsibility has been transferred and be spent by such agency on those works or that service. 34 If public moneys appropriated by a budget passed for a particular financial year are not spent in that financial year, such moneys must not be spent after the end of that financial year, except in accordance with section 8 of this Law.
CHAPTER 5 Financial Reporting

Moneys appropriated in the budget for expenditure

Annual reports to be prepared and submitted to Auditor-General

35 (a)

The accountable officer designated under this Law in each accountable government agency must, within 3 months after the end of a financial year, prepare and submit to the AuditorGeneral a written report containing the following information: (1) A statement of the estimated revenue and expenditure for the agency that are in the budget passed by the Peoples Majlis for that financial year; (2) A statement of the actual revenue and expenditure of the agency in that financial year; and (3) A report of the operations of the agency in that financial year. (b) The report stated in subsection (a) of this section must be prepared in accordance with procedures laid down by the Auditor-General. (c) From the information required by such agencies for the

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preparation of the report stated in subsection (a) of this section, information maintained by the Minister must be provided by the Minister within 1 month after the end of that financial year. (d) If an accountable government agency is abolished, the accountable officer designated under this Law in the agency at the time the agency was abolished must prepare and submit to the Auditor-General, within 6 months from the date the agency is abolished, a written report prepared in accordance with procedures laid down by the Auditor-General for that part of the financial year up to the date of its abolition (e) The report stated in subsection (a) of this section shall be prepared and submitted by the Office of the Auditor-General in accordance with law.
Annual reports to be audited and reported

36 (a)

The Auditor-General must, within 2 months from the date of receiving the annual report stated in section 35 of this Law from an agency stated in the same section, audit the report and after auditing the same, submit a written report thereof to the accountable officer of the agency designated under this Law. (b) If the Auditor-General does not receive a report from an accountable government agency in accordance with section 35 of this Law the Auditor-General must, within 14 days, report the matter in writing to the Peoples Majlis and the President.

Audit Report and Annual Report to be submitted to the President

37 The accountable officer, designated under this Law, in every accountable government agency must, within 1 month from the date of receiving the Auditor-Generals report in accordance with subsection 36(a) of this Law, submit the Auditor-Generals report and a copy of the report prepared in accordance with section 35 of this Law to the President and the Speaker of the Peoples Majlis. 38 (a) The Financial Controller must, within 3 months after the end of a financial year, prepare and submit to the Minister the States annual statements for that year in accordance with procedures laid down by the Auditor-General. (b) The States annual statements stated in subsection (a) of this section must include the following: (1) a statement of the estimates of the revenue and expenditure for each of the Public Funds that are in the budget passed by the Peoples Majlis for that financial year; and (2) a statement of the actual revenue and expenditure of each of the Public Funds in that financial year; and (3) a statement of the assets, liabilities and contingent liabilities of the State as at the end of that financial year.

States annual statements

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(c)

The Minister must, within 14 days from the date of receiving the States annual statements as per subsection (a) of this section, submit the same to the Auditor-General. (d) If the Auditor-General does not receive the States annual statements from the Minister in accordance with subsection (c) of this section within 3 months and 14 days after the end of a financial year, the Auditor-General must, within 14 days, report the matter in writing to the President.
Submission of Auditor-Generals Report on the annual statements

39 The Auditor-General must, within 2 months from the date of receiving the States annual statements from the Minister in accordance with subsection 38(c) of this Law, submit the AuditorGenerals report to the Minister. 40 The Minister must, within 14 days from the date of receiving the Auditor-Generals report in accordance with section 39 of this Law, submit to the President the said report and the States annual statements prepared in accordance with section 38 of this Law, and must send the same to the Peoples Majlis within 14 days from the date of submission of the same to the President. 41 The Minister, or a person appointed by the Minister to do so, may at any time inspect the financial and accounting records of a government agency.
CHAPTER 6 Administrative Matters

Annual statements and audit report to be submitted to the President

Inspection of accounts

Ministers responsibilities

42 The following, among others, are responsibilities of the Minister: (a) Administering this Law; (b) Controlling and managing the Public Bank Account, the Public Funds and the financial affairs of the State; and (c) Ensuring that full and accurate accounting of the Public Bank Account, the Public Funds and the financial affairs of the State are duly submitted to the Auditor-General and the Peoples Majlis.

Delegation by the Minister

43 (a)

The Minister may delegate to the Financial Controller any of the Ministers powers or duties under this Law as and when the Minister deems appropriate. However, the powers and duties delegated to the Financial Controller by the Minister must not be delegated to any other person by the Financial Controller. (b) The Minister shall not be exempted from his responsibilities even though the Ministers powers and duties have been delegated to the Financial Controller as per subsection (a) of

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(c)

this section. The delegation of the Ministers powers and duties to the Financial Controller as per subsection (a) of this section must be in writing and be signed by the Minister.

Appointment and responsibilities of Financial Controller

44 (a)

The President shall create a position called the Financial Controller and shall, on the advice of the Minister, appoint to the position a person having the following qualifications: (1) A Masters degree in a field related to the position or an equivalent qualification from an institution acceptable to the government or having worked for an appropriate duration in a financial agency of the government and has gained experience. (2) Has never been convicted of criminal breach of trust, theft, fraud or any similar offence. (b) The responsibilities of the Financial Controller must be set out in this Law and the Public Finance Regulations. The responsibilities of the Financial Controller shall include the following : (1) Supervising and administering the financial and accounting records of the State and the accounting system of the State in accordance with procedures laid down by the Auditor-General. (2) Ensuring that the receipt, custody, payment and investment of public moneys are in accordance with this Law and the Public Finance Regulations. (3) Ensuring that the purchase, custody, use, sale, destruction and disposal of public property are in accordance with this Law and the Public Finance Regulations.

Accountable government agencies

45 (a)

For the purposes of this Law, the following shall be deemed to be accountable government agencies: (1) The Presidents Office, Ministries and the Attorney Generals Office. (2) Those government agencies that the President determines and designates to have a separate financial management and financial accountability. (b) The financial affairs and transactions of every government agency that is not considered an accountable government agency shall, as per the Public Finance Regulations, be under the responsibility of the accountable government agency to which such agency is related. (c) The accountable government agency which, according to the Public Finance Regulations, is responsible for the financial affairs and transactions of a government agency as per the said Regulations shall, for the purposes of this Law be responsible

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for the same.


Appointment and responsibilities of accountable officers

46 (a)

For the purposes of this Law, each accountable government agency shall have one accountable officer responsible for the implementation of matters under this Law. (b) The responsibilities of accountable officers designated under this Law shall be set out in the Public Finance Regulations.
CHAPTER 7 Miscellaneous

Improper conduct

47 In the following situations, the person responsible shall, under this Law, be deemed to have engaged in improper conduct: (a) being responsible for collecting or recovering or depositing or accounting for public moneys or public property, has negligently omitted to collect or recover or deposit or account for the moneys or property; or (b) the payment of public moneys or the sale or destruction or disposal of public property other than in accordance with this Law or the Public Finance Regulations; or (c) any deficiency in public moneys for which the person is responsible; or (d) any damage to public property for which the person is responsible. 48 (a) If a person has engaged in improper conduct as stated in section 47 of this Law, the Minister may fine the person as per the Public Finance Regulations. The amount of such fine shall, however, be determined in the following manner: (1) the amount of public moneys, or the value of public property involved in the improper conduct; or (2) the amount of deficiency for which the employee is responsible; or (3) the value of public property sold or disposed of or destroyed or damaged by the employee. (b) If a person has intentionally engaged in improper conduct, the Minister must, in addition to imposing a fine as stated above, submit such case to the Attorney-General for prosecution. (c) The purpose of imposing a fine as stated in subsection (a) of this section is to recover in full the damages incurred by the State. Hence, the right to recover damages shall prevail until the damages are recovered in full.

Imposing fine for improper conduct

Making Regulations

49 The Public Finance Regulations shall be made and administered by a person or persons determined by the President.

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Coming into force of this Law

50 This Law shall come into force, at the latest, within 1 year from the date this Law is passed, ratified and published in the Government Gazette. However, the President shall have the power to defer giving effect, for a period of 3 years from the date this Law comes into force, to sections of this Law that require changes in policy for their implementation, and the power to give effect to certain sections during that period. 51 (a) In this Law, unless the context otherwise requires: Grace payments means the type of assistance stated in section 10 of this Law. Contingent liability means debts or moneys that may have to be paid due to the occurrence of an unpredictable and unforeseen event. Capital Works means works and projects for public purposes which involve capital expenses. Such works do not obligate the involvement of tangible property. Undertaking means the agreement where one party agrees to take financial responsibility for another party. Indemnity means a guarantee or an assurance given by one party to another in agreement to compensate for damages or to compensate for damages caused to a party as a consequence of an agreement entered into between two parties. Assets means properties, businesses and things of financial value owned by a party that can be used in the repayment of debts. Advance payment means money paid ahead. Financial year means the period beginning on and including 1 January and ending on and including 31 December. Minister means the Minister of Finance and Treasury or any other Minister or State Minister if such Minister is assigned the responsibilities of the Minister of Finance and Treasury by the President. Person means and includes a natural person or a company, or an association or body of persons established according to Law or otherwise. Passed budget means a budget allocated for a financial year and the money to be added to an existing budget in accordance with Article 78 of the Constitution of the Republic of Maldives. Public Finance Regulations means the regulations and procedures made and administered under section 49 of this Law.

Interpretation

Law No. 3/2006

Public property means any property, whether moveable or not, belonging to the State or held by any person for or on behalf of the State; Public moneys or money means all moneys, negotiable instruments or securities collected or held by any person for or on behalf of the State as taxes, charges, fees, duties, fines, or revenue whether in or outside the Maldives and moneys held by the State for or on behalf of another person, loans, grants, gifts, interest earned or to be earned; Liabilities means the debt arising out of a business on the owners and lenders of that business; or money owed. Guarantee means the assurance by a third party, not party to an agreement or transaction between parties, that such third party would be responsible for consequences arising out of any breach of the terms, conditions or provisions of that agreement or transaction by a party to that agreement or transaction. Government agency means an office, position or organisation that is established or continued for public purposes under a law or by administrative authority and does not include public enterprises. Supplementary budget means an additional budget passed to be included in an already passed budget for a financial year. Accountable officer means the officer designated in an accountable government agency under section 46 of this Law responsible for the implementation of matters under this Law. (b) In this Law, unless the context otherwise requires: (1) words in the singular include the plural and words in the plural include the singular; and (2) if a word is defined in this Law, other parts of speech and grammatical forms of that word have corresponding meanings.

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