The Social Insurance Organisation (SIO) may have to submit closing statements on its finances and pension funds to Parliament and the Shura Council.
The Shura Council is set to debate and vote on an insertion to the 2018 SIO Set-up Law, which will allow them to monitor the funds, during their final session of the year on Sunday.
Parliament last month unanimously approved the legislation, however, MPs amended the inserted article to state: “The government is obliged to present the SIO’s closing financial statement on the civil service and private sector pension funds within a maximum five months to Parliament starting January 1.”
If approved, it will be referred to His Majesty King Hamad for ratification.
SIO’s financial statements will not be officially recognised until it’s published in the Official Gazette, following approvals from both Parliament and the Shura Council, accompanied by legislators’ observations and recommendations.
Shura Council services committee chairwoman Dr Ibtisam Al Dallal said MPs had every right to monitor spending and revenues of public authorities.
“The SIO’s operations wouldn’t be hindered or affected, considering that internal and external audits are conducted after December 31,” she pointed out.
“Legislators have a different role, it is monitoring performance and giving recommendations on the mode of operations – and not the audited numbers.
“We are already following such a procedure with the Future Generations Fund and its operations are not affected; that has been the process for more than a decade.”
Dr Al Dallal added that opening SIO’s books to MPs and the Shura Council was a welcome move as it gives the public necessary assurances.
“We have already approved another proposed legislation to do the same with the Unemployment Fund, with it becoming an official legislation after His Majesty’s ratification,” she added.
“More monitoring is good and gives necessary assurances to the public that things are being done right.”
Shura Council financial and economic affairs committee chairman Khalid Al Maskati also highlighted the importance of the legislation.
“The aim is to support the sustainability of the SIO and funds under its umbrella, in addition to enhancing transparency and ensuring the management and investment of public money with minimum risks,” he said.
“The observations and recommendations presented by legislators will be instrumental in how future operations are conducted.”
SIO chief executive Eman Al Murbati earlier told Shura Council members that legislators had already authorised the SIO board, through law, to take necessary action regarding operations and internal and external audits.
“The books are scrutinised by the National Audit Office on top of the audit we conduct internally and externally,” Mr Al Murbati said.
“If Parliament and Shura Council do not approve the closing statements, how can we continue or conduct work?”
However, the stand has since changed with the government giving the go-ahead for the legislation, following an understanding on the mechanism with MPs.
Shura Council members are also set to be notified about reports presented by legislators following participation in the International Parliamentary Union meetings during the year.
mohammed@gdn.com.bh
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