Government institutions are responsible for managing public money and all entities are urged to immediately follow new rules and guidelines designed to curb corruption.

The State Audit Institute (SAI), the apex anti-corruption body in the country, on Tuesday release its first manual.

“Government institutions in the UAE are responsible for managing public money, and hold a national responsibility represented in protecting allocated money and making sure of proper use effectively and beneficially,” said SAI President, Dr Harib Saeed Al Amimi.

While announcing the release of the guideline, he said fraud was one type of financial corruption negatively influencing government entities’ activities and resulting in incurring high costs through actual waste of money. The new guideline called Fraud Control Framework has three key functions on fraud — prevention, detection 
and response.

The guideline also calls company executives, especially CEOs, to pay more attention in dealing with frauds and embezzlements and seek SAI support to deal with such cases.

The manual also defines fraud, particularly in money matters from root causes to its control.

“This means that fraud control framework is an important preventive procedure and is part of integral process to fight financial corruption to achieve strategic objectives related to different aspects of development in UAE,” the anti-corruption agency 
chief said.

The manual called Fraud Control Frameworks-Best Practice Guide, which is the first manual in this regard, is considered a part of an integral strategy to develop corporate governance framework to support basic objectives and principles of general strategic plan of Federal Government.Al Amimi said the Best Practice Guide, prepared as per best international standards and practices and in line with UN Anti-Corruption Treaty, aims to provide government institutions and concerned entities with the minimum requirements of necessary guidelines. He said: “These guidelines help to activate corporate governance elements in entities audited by SAI in order to ensure optimal use of public money and fighting all types of financial corruption.

Government Institutions in UAE are responsible for managing public money, and hold a national responsibility represented in protecting allocated money and making sure of proper use effectively and beneficially.”

Al Amimi invited all entities to urgently comply with guidelines of this manual to ensure implementation of best practices across government institutions for fighting financial 
corruption.

He also invited them to coordinate with SAI to implement preventive procedures proposed in the manual.The manual defines fraud and fraud control framework, which detects, prevents fraud cases and responds to related risks regularly in government 
organisations.

The manual also includes functions of fraud control framework and responsible entities, method of prevention and ways of committing fraud cases.

The manual presents the role of internal audit in detecting and reporting fraud, protecting employees reporting suspicious fraud cases, actions taken and disciplinary procedures as well as re-evaluation of controls following to committing any fraud case.

How to curb fraud

Set a good example for all to follow

Make it clear, through statements and policies, that any kind of unethical behaviour especially fraud, will not be tolerated

Be prepared to take firm corrective action, including applying disciplinary measures

Be seen to take such action when cases of misconduct are discovered or reported

Fraud reporting

Nominate a person (such as the Fraud Control Officer) to receive any reports of fraud either from employees of the organisation or from customers, suppliers or members of the public

Provide advice to employees, customers and suppliers on how to make reports and what to report about

Have a system for recording all reports received

Develop procedures for responding to fraud reports

Review progress to make sure the above actions take place

Fraud registration

Upon receiving a report of suspected fraud, the matter should be recorded in a Fraud Register

The Fraud Register will record all reported suspicions including those dismissed as unsubstantiated, or otherwise not investigated

It will also contain details of actions taken and conclusions reached.

nissar@khaleejtimes.com

• UAE