The Senate has concluded its first session by passing three draft laws: the Cooperative Law, the Virtual Assets Regulation Law, and the Penal Code Amendment Law, in addition to endorsing the Audit Bureau’s 2023 report.
اضافة اعلان
The first ordinary session of the 20th Parliament is set to end on May 18, and a Royal Decree dissolving the session is expected in the coming days. The decision on whether to hold an extraordinary session remains dependent on internal and external developments.
This came during a session held yesterday morning, chaired by Senate President Faisal Al-Fayez and attended by several members of the government team.
Key Legislation Passed:
1. Cooperative Law
The law establishes a fund within the Cooperative Institution to finance the cooperative sector and a dedicated institute to promote cooperative culture. It also strengthens the institution’s role in supervising the sector and regulates foreign cooperative branches and unions.
2. Virtual Assets Regulation Law
This law regulates virtual asset-related activities to protect users and assigns regulatory authority to the Securities Commission. Its objectives include overseeing virtual asset operations, ensuring compliance with international standards—particularly anti-money laundering and counter-terrorism financing—and striking a balance between innovation and financial stability.
The Securities Commission will be responsible for issuing licenses, ensuring service providers meet legal requirements, and implementing oversight measures.
3. Penal Code Amendment Law
This amendment aims to expand alternatives to custodial sentences, reintegrate convicts into society, and allow suspension of sentences even after final rulings. It also enables courts to postpone or allow installment payments of fines.
The bill reflects a shift toward restorative justice and includes giving the sentence enforcement judge authority to collect fines under the Public Funds Collection Law. It aims to reduce prison overcrowding and prevent recidivism.
Audit Bureau 2023 Report:
The Senate approved the recommendations of its Finance and Economic Committee regarding the 2023 Audit Bureau report. Key points include:
Outstanding amounts:
JD 633 million in uncollected cases in the Ministry of Justice’s enforcement departments.
JD 719 million owed by Social Security subscribers.
JD 281 million owed by municipalities and joint service councils.
Recommendations:
Amend the Public Funds Collection Law for more effective recovery.
Activate property auctions one year after asset seizure.
Improve budget accuracy as 177 treasury-funded projects spent less than 35% of their allocations, and 705 projects had budget reallocations.
Form a joint committee from the Audit Bureau and Ministry of Finance to close advances periodically and manage medical exemptions and arrears sustainably.
Concerning financial observations:
JD 755 million in loans saw zero disbursement despite the Treasury incurring over JD 5 million in commitment fees on undrawn balances in 2023.
Studies related to program financing agreements must be completed before signing.
Weak governance in companies under Audit Bureau oversight highlights the need to institutionalize good governance systems.
Municipal debt warning:
The report noted a rise in municipal debt and a high ratio of current to capital spending. It recommended continuing funding for the ERP project, institutionalizing municipal audit work, allocating training resources, and improving receivables collection.
These developments signal a significant legislative and oversight effort ahead of the expected royal decision to conclude the current parliamentary session.
