Article 7 of the Saudi Financial Control Law
المادة 7 من نظام الرقابة المالية · الفصل الثاني: الرقابة المباشرة
The Article provides that the Ministry of Finance exercises direct control over procedures and operations with a financial impact in the government entity to ensure compliance, without prejudice to the entity's duty to apply internal control systems.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال بالتزامات الجهة الحكومية بتطبيق أنظمة الرقابة الداخلية، تقوم الوزارة بالرقابة المباشرة على الإجراءات والعمليات ذات الأثر المالي في الجهة الحكومية، للتأكد من امتثالها للأنظمة واللوائح والتعليمات، وذلك لاتخاذ الإجراءات اللازمة بشأنها وفقاً لأحكام النظام واللائحة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 7 explained in plain English
This Article opens the second chapter on direct control, which according to Article 1 is a control method in which the Ministry applies financial control over the procedures and operations with a financial impact in the government entity through the financial representative.
What the Article provides:
- The subject of control: the procedures and operations with a financial impact in the government entity.
- Its purpose: to ensure the entity's compliance with laws, regulations, and instructions.
- Its result: taking the necessary measures regarding them in accordance with the provisions of the Law and the Implementing Regulations.
The important limit: The Article begins with the phrase "without prejudice to the government entity's obligations to apply internal control systems". This means that the existence of direct control by the Ministry does not relieve the entity of its responsibility for its own internal control. Internal control systems, according to Article 1, are the policies and procedures the entity carries out to ensure achievement of its objectives and provide reasonable assurance regarding operational efficiency, financial reliability, and compliance with laws.
So the two kinds of control work together: internal control carried out by the entity itself, and direct control exercised by the Ministry.
This method applies to a government entity if the Minister or his delegate determines it under Article 6. As for how it is exercised, Article 8 explains it, providing that the Ministry authorizes a financial representative for the government entity subject to direct control, and regulates his approval of disbursement. Anyone working in a government entity subject to direct control who needs to understand its obligations may consult a lawyer specializing in administrative matters.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentAdministrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Al-Safwa Law Office and Legal Consultancy
Frequently asked questions about Article 7 of the Saudi Financial Control Law
What is direct control under the Financial Control Law?
Control exercised by the Ministry of Finance through the financial representative over procedures and operations with a financial impact in the government entity, to ensure compliance with laws, regulations, and instructions.
Does direct control relieve the entity of its internal control?
No. The Article provides that direct control does not prejudice the government entity's obligations to apply internal control systems.
More articles on Direct Control and the Financial Representative
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.