Article 8 of the Saudi Financial Control Law

This Article explains how direct control is actually exercised, and contains two provisions:

Paragraph (1): authorizing the financial representative

If the government entity is subject to direct control, the Ministry authorizes a financial representative for the entity, who monitors the procedures and operations with a financial impact there in accordance with the provisions of the Law and the Implementing Regulations. The financial representative, according to Article 1, is one of the financial controllers.

Paragraph (2): approving disbursement

The financial representative approves disbursement if either of two things is met:

1. The government entity's compliance with laws, regulations, and instructions. This is the basic case.
2. Its non-compliance, with a formal notice from the competent minister or the first official in the government entity to the financial representative approving the disbursement procedures.

In the second case an additional responsibility falls on the government entity: to notify the General Court of Audit of this within 30 days of its date, so that the Court can take what is required according to its competence.

The practical meaning is that the financial representative cannot permanently block disbursement if the first official or the competent minister formally approves it, but the government entity must then notify the General Court of Audit as one of the oversight bodies. The Article does not specify the action the Court takes, but refers to its competence.

Article 7 explains that direct control does not prejudice the entity's duty to apply internal control systems. Anyone working in a government entity who faces a disagreement with the financial representative over disbursement may consult a lawyer specializing in administrative matters.