Saudi Cabinet allows government bodies to accept donations from contractors under strict rules
Government agencies in Saudi Arabia may now accept donations from their contractors, subject to new oversight measures to prevent preferential treatment.
Key Takeaways
AIThe Saudi Cabinet has amended regulations governing the oversight of donations and gifts received by government entities, allowing—by exception—beneficiary agencies to accept donations from donors who have contracts or licenses with them, under specific conditions.
Cabinet Decision No. 414, published Friday in the official Umm Al-Qura gazette, stipulates that a committee must be formed by a decision of the relevant minister, head of an independent authority, or head of a public institution. This committee will review requests to accept such donations to ensure that donors do not receive any preferential or discriminatory treatment in their contracts with the agency or in any of its activities.
The decision requires that donations must be directly related to the agency’s functions and activities, aim to provide tangible community services, and must not be accepted during the process of contracting, issuing, or renewing licenses for the donor.
It also stipulates that the donor must not be involved in any ongoing violations or corruption cases, in coordination with the Oversight and Anti-Corruption Authority. The donor should have a history of making donations to both public and private entities, not limited to the contracting agency, and the donation must not be intended to influence the agency’s current or future decisions.
The decision requires donors to submit their requests using a unified form approved by the Minister of Finance. Acceptance of the donation is only valid with a written decision from the relevant minister or agency head, who has the right to revoke acceptance and return the donation if any violations of the rules are discovered later.
Government entities are also required to submit an annual report to the General Court of Audit, detailing accepted donations under this exception, including the donor’s name, type and purpose of the donation, and all current and expired contracts and licenses with the donor.