Dubai: Defaulters can now pay outstanding public funds in instalments

Applicants must make an initial payment of 25% of owed amount



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A Staff Reporter

Published: Wed 17 Aug 2022, 4:18 PM

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 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 No. (25) is related to payment of outstanding public funds by instalments, where the head of a government entity or their authorised representative has the authority to allow payment by instalments of any public funds outlined in a list submitted by such entity to the Department of Finance (DoF).

According to the Resolution, payment of public funds by instalments is subject to several conditions, including: public funds must be due by the date on which the application for payment by instalment is submitted, and the amount of public funds to be paid by instalments must not be less than the minimum amount prescribed by the DoF. Further, the applicant must prove their inability to pay the total outstanding amounts in one payment. The applicant must also make an initial payment of at least 25% of the outstanding amount of public funds requested to be paid by instalments.

According to the amended Resolution, if an applicant cannot make the minimum payment of 25% of the outstanding amount before applying for the payment by instalments, the head of the government entity or their authorised representative may reduce the minimum payment after reviewing the reasons behind the request.

The other conditions that remain unchanged are: The instalment period must not exceed five years, or the period in which the public funds are due, whichever is shorter. Instalments 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.

According to the Resolution, an applicant for payment by instalments must, within 15 days from being notified of the decision approving the application for payment by instalments, 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 instalment period, until full payment is made. If an applicant fails to pay the instalments by the prescribed deadlines, the decision approving the application for payment by instalments will be deemed null and void.

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The Resolution shall be effective from the date of its publication in the Official Gazette.


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