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The Dewan of Audit shall be an autonomous body affiliated to the Revolutionary Command Council and its purpose shall be to institute an effective control over public moneys in accordance with the provisions of this law.
The Dewan of Audit is composed of the Head, an Under Secretary, and an adequate number of Members, and shall be provided with an adequate number of technical and administrative officials.
Appointment of the Head of the Dewan of Audit, acceptance of his resignation, and dismissal from office shall be by resolution of the Revolutionary Command Council.
He shall be treated in respect of salary and other financial and administrative matters as a minister.
The Dewan of Audit shall have an Under Secretary with the status of Under Secretary of state.
The members of the Dewan of Audit shall have an Under Secretary and technical officials of a Grade not less than Director General.
Appointment of the members of the Dewan and transfer of such members from their posts shall be effected by a decision of the R.C.C. which will be issued on recommendation of the Prime Minister made after consultation with the Head of the Dewan.
The Head of the Dewan, the Under Secretary, the Members and the technical staff shall be Libyans graduated, from either High Institutes or Universities, in Law, Economics, Commerce, Auditing, Accountancy or any other branch required by the nature of work within the Dewan.
Neither the Head of the Dewan nor the Under Secretary or the technical staff shall occupy any other public post or assume any other activity whether commercial, industrial or financial. They shall not enter into any contract or undertaking with the Government, Public Organisations, Corporations, or any other authority subject to control by the Dewan, nor shall they assume membership of the Board of Directors of any Company. They may not purchase or rent even by auction any Government property for the purpose of exploitation whether by themselves or through other, nor shall they sell or rent to Government any of their property without a special permission from the Prime Minister.
The Head of the Dewan shall be responsible for the technical and administrative control of the Dewan and for the issue of instructions to enable the Dewan to carry out its duties.
He shall be responsible for the issue of Internal Regulations and decisions necessary for the organisation and administration of the Dewan. For this purpose he shall have the powers of a Minister as laid down in laws and regulations in respect of the Under Secretary, Members and the Staff of the Dewan, concerning and utilisation of allocations provided for in the budget of the Dewan, he shall have the powers of the Minister of Treasury.
The Under Secretary will cooperate with the Head of the Dewan in carrying out his responsibilities and will act for him in his absence or in the event of his relinquishing the office.
The Head of the Dewan may delegate to the Under Secretary any of his powers under the provisions of this Law, except those stated in Articles 8. Para. 2, 20, 29, 32 and 33.
No Member or official of the Dewan shall, except with the approval of the Head of the Dewan, be delegated, seconded to any other authority, or required to assume the duties of any other post
Members of the Dewan shall not normally be dismissed from office. Nevertheless if a member loses the confidence and esteem required by the nature of his duties, his services shall be terminated after approval by the Disciplinary Court formed by Decision of the R.C.C. upon recommendations of the Prime Minister.
A Personnel Committee within the Dewan shall be created for the affairs of its members and officials, to be presided over by the Head of the Dewan, or in his absence, the Under Secretary. It will be composed of the Head of the Legislation and Litigation Department or his representative from the said department, the Under Secretary, Ministry of Civil service or whom he may delegate from among the officials of the Ministry, and the two most senior Members of the Dewan: Should one of these two members be absent or otherwise unable to attend, he shall be replaced by the next senior Member of the Dewan.
The Committee shall have all the powers given by Laws and Regulations to the Civil Service Committee, the committee for Unclassified Personnel Affairs and the Supreme Committee for Educational Missions. No meeting of the said Committee shall be valid unless all members are present and its decisions shall be by majority vote.
The Under Secretary of the Dewan shall have the powers of the Under Secretary, Ministry of Civil Service.
Disciplinary case may be filed against the Head of the Dewan, or the Under Secretary by a decision of the R.C.C. after investigation by a committee formed for this purpose.
Their trial for disciplinary contraventions shall be the responsibility of a special council formed by decision of the R.C.C. and no other penalty may be inflicted on them except dismissal from office.
Decision by the special council shall be final and no appeal will be against it except before the Supreme Court.
Members of the Dewan except the Under Secretary shall be punishable by a Disciplinary Court formed as follows:
1. An Advisor from the Supreme Court: Chairman
2. The Head of the Legislation and Litigation Department: Member
3. A Member from the Dewan whose grade shall not be less than that of the Member put on trial: Member
The Disciplinary penalties which may be inflicted by the Disciplinary Court referred to in the above article are, Warning, Censure, and Dismissal.
The Executive Regulations of this law shall include provisions for investigation and disciplinary procedures.
The provisions of the Civil Service Law shall, in matters not provided for in this Law, be applicable to the Head of the Dewan, the Under Secretary, Members and officials of Dewan.
The Dewan shall prepare its draft annual budget and forward it to the Minister of Treasury not later than the end of August in each year. The said draft shall be incorporated, by the Minister of Treasury, in the draft general budget of the state. Should the draft submitted by the Dewan involve an increase over the total provisions of the previous year, the Minister of Treasury shall include the provisions of that year and may submit the question of the excess to the Council of Ministers. The accounts of the Dewan shall be audited in accordance with the rules laid down in special Regulations to be issued by the R.C.C. on a proposal made by the Prime Minister after consultation with the Head of the Dewan.
1. The Dewan of Audit shall examine and audit the accounts of Government, and the accounts of Public Organisations and Corporations whether or not laws of these have provided for a special system of Accounting audit.
2. It shall also be responsible for examining and auditing accounts of the following authorities:
(A) Companies where Government or Public Organisations and Corporations have contributed not less than 25% of the capital or have guaranteed a minimum profit;
(B) Enterprises, the owners of which receive direct exemptions or aids from Government, or who receive loans from Government, the contracts for which provide for such enterprises to be subject to audit by the Dewan.
3. It shall examine and audit any other accounts the examination or audit of which may be required by a decision of the R.C.C. or the Prime Minister.
1. Appointment of Auditors of Public Organisations and Corporations, and Companies fully owned by Government, Laws of which provide for a special system of audit, shall be made upon recommendation of the Head of the Dewan. The Head of the Dewan will suggest the remunerations to be paid to such Auditors for their work.
2. Without prejudice to the Auditors being responsible to the competent ministers and authorities mentioned in the preceding paragraph, such auditors shall be responsible to the Dewan of Audit for examining and auditing the accounts of these authorities. They will be considered in charge of public service, in applying article 33 of this law, and will be subject to the provisions laid therein.
3. The Dewan may contact the auditors of the authorities mentioned in "2" and "3- of Article 18 and para "1" of this article as may also instruct them as to the method of examining and auditing the accounts. They shall supply the Dewan with a copy of each report they submit to the authority concerned. The Dewan may examine these reports and may rectify any defect or certify any vague point it may notice therein, or otherwise instruct the said auditors to this effect.
The Dewan when auditing the accounts of these authorities may satisfy itself with the reports submitted by those auditors after being completed or may conduct whatever special audits it considers necessary in this respect.
For this purpose it may obtain any explanations and information deemed necessary, from the said auditors and the authorities themselves. It shall have access to all books, documents, and other papers deemed necessary for inspection and audit
4. Audit of accounts of the companies and enterprises mentioned in "2" and "3" of article 18 of this law, shall be conducted in accordance with the normal Accounting Principles and within the scope of the provisions governing the activities of these companies am enterprises.
5. The Board of Directors and responsible officials of the authorities referred to in the preceding paragraph, shall submit the Dewan's remarks to its General Assembly when convened or to the authorities responsible for ratification of the balance sheet and Final accounts of these authorities. The Dewan may attend meetings of the General Assembly of a Company where the Dewan appoints its auditors in accordance with the provisions of this Article.
Ministry of Treasury shall submit to the Dewan of Audit, not later than six months from the end of the Fiscal year, the final accounts of the Government for that year.
The Head of the Dewan shall prepare an annual report on the Final Accounts of Government for the previous Fiscal year stating the financial irregularities he has noticed and disagreement that have occurred, between him and the various Authorities. He shall submit this report to the R.C.C., with copies to the Council of Ministers and to the Minister of Treasury, not later than four months from the date of his receiving the final accounts from the Ministry of Treasury.
The Head of the Dewan may submit similar reports, when necessary, on issues he considers so important and serious that they require urgent attention.
A. The Dewan in auditing revenues, shall concern itself with the following:
1. To control the collection of revenue and to see that all amounts received have been rendered to the Treasury and are entered into the accounts concerned.
2. To ensure observance and proper application of the provisions of au financial laws and regulations and to draw attention to any inherent weaknesses or defects therein.
3. To examine the financial regulations and systems in force to ensure their application, adequacy, and efficiency for securing the collection of taxes, duties and other public revenues in compliance with the laws in force.
B. The Dewan shall ascertain particularly the following:
1. That statements and other documents for depositing the revenues and books have been duly checked by the officials responsible and that all amounts entered therein have been correctly credited to Government revenues.
2. That all statements of revenue and of arrears of revenue submitted by Government Departments are adequate evidence that the moneys received together with the arrears outstanding, constitute all the revenues due under the laws and regulations in force, and that the Departments have spared no effort to collect these arrears.
3. That no exemption from the payment of any taxes, duties or any other moneys due has been granted, except as provided by laws and has been confirmed by the competent authorities in pursuance of such laws.
4. All taxes, duties, and other public revenues have been collected in accordance with the laws.
A. With regard to expenditure, it shall be the duty of the Dewan:
1. To ensure that all provisions have been disbursed for the purposes for which they were allocated and that they have been duly expended in accordance with the relevant Laws and of this regulation in force.
2. To ensure that all payments are properly supported by authentic documents and to ascertain that documents and vouchers are correctly corresponding to amounts entered into the accounts.
3. To ensure that all the Regulations and Rules relevant to Government stores have been properly observed, and to draw attention to any inherent weaknesses or defects.
B. It shall be the duty of the Dewan, specially, to ensure that:
1. Disbursements under each item of the Budget correspond properly to the relative vouchers.
2. Payment vouchers are correctly issued by the competent authorities according to the Laws and Regulations within the limits of their relevant warrants, and are supported by proper papers, receipts, and documents.
3. All disbursements are charged to the appropriate Head and Item of the Budget and that funds are actually allocated to attain the desired objective.
4. Credits authorised for any Head or Item in the Budget have not been exclaim except after proper authorisation from the competent authorities.
5. All credits expended for new works or for development are appropriated for the purpose for which they were allocated, and that no work which is not authorised under the Budget has been undertaken without the approval of. the appropriate authorities.
6. The reasons which have led to the under expenditure of all or some of the moneys allocated for new works or for development, are satisfactory, and that any savings made in the provisions for any works have not been used to meet over expenditure on provisions allocated for another work unless authorisation has been obtained from the appropriate authority for the increase in the final costs of that work.
7 No Government Department has assumed any obligation which would cause it to exceed the approved credits under any Head of its Budget, notwithstanding that the amounts involved have not actually been disbursed.
8. The provision in the Constitutional declaration, and in any Law or R.C.C.'s resolution relative to the non-approval of the Budget is observed.
9. Decisions of appointment and promotion, of reimbursement of expenditure and of allowances of any nature have been made in accordance with the Laws and Regulations concerning such matters, and are within the limits of the Budget and Financial Rulings, all Rules concerning Grades are properly observed and any appointments which have been created for a particular person, or are subject to cancellation or amendment on becoming vacant for the first time, are duly observed.
10. All pensions and gratuities are examined to ensure that they accord to Law and Regulations.
1. Contracts concerning supplies, public works, services and all other types of contract entered into by Government which result in financial rights or liabilities in excess of L.D. 500,000, are subject to the control of the Dewan. The assessment of such value will be based on the total value of materials or works the subject of such contracts and in case of tenders such value will be calculated on the basis of the lowest price offered in the tenders submitted and which are in accordance with the conditions laid down. Division of control, in such cases, so as to reduce its value to the extent that it evades the control of the Dewan shall not permissible. Evidence of such division is proved whenever the authority concerned has invited for a tender for materials or works of the same type within a period of less than three months from the date the contract has been concluded.
2. The Ministry or the Department concerned shall, in cases where a contract is entered into through tenders or auctions, send copies of all letters despatched to the Tenders Board in this connection, to the Dewan of Audit. Such letters will be accompanied by copies of the technical and economic studies of the subject of the tender, and drawings, specifications, general terms, estimates and any other documents on basis of which the tender is being invited or which the Dewan may deem necessary for its consideration. The Dewan shall examine and audit these and submit a report to the authority wishing to contract with a copy to the authority responsible for approving the award of the said contract and this will be done before a decision is issued in this respect
3. The Ministers and Departments shall in cases where a contract may be entered negotiations send copies of the letters submitted requesting an authority to make such practice, together with a memorandum giving full details of the subject of the said contract, the documents and studies mentioned in the preceding para "2". The Dewan shall submit its report and remarks in this respect to the authority responsible for approval of the result of the negotiations made before issuing its decision in this respect
4. The Ministries or Departments shall, in cases where a contract may be entered into through direct order, send copies of the letters submitted requesting authority to contract by such means, together with a memorandum giving full details of the subject of the contract, studies and documents referred to in para "2" of this article. The Dewan shall submit its report and remarks in this respect to the authority concerned before conclusion of the contract
5. Tenders or Negotiation Boards and Committees responsible for contracting through direct order shall in due time, supply the Dewan of Audit with copies of minutes of their deliberations and decisions and also decisions of the technical and financial committees emanated therefrom so as to enable the Dewan to study these and to include, in the reports in prepares in pursuance of this article, its remarks as regards the award of the contract in question.
6. The report referred to in the preceding paragraphs submitted by the Dewan shall include reference as to whether or not the provisions allocated in the plan or included in the budget are adequate to enter into the contracts or to meet the expenditures involved as well as such other remarks as it deems necessary in respect of the subject of the contract or its conditions. The Executive Regulations of this law shall indicate the measures that will ensure expedient control or secrecy whenever deemed necessary.
7. The Revolutionary Command Council or the Council of Ministers may, in certain cases of contracts laid down in this article, request the authorities responsible for issuing the decision of award of tender or the approval of entering into contract in the case of negotiated contract or direct order, to refer to the reports of the Dewan of Audit concerning the said cases, before issuing their decisions in this respect
8. The Dewan shall ensure, before payment is made, that the instruments and documents concerning the payment of any amount under any contracts in excess of L.D. 500,000 are proper and correct. Such pre -payment control shall be effected in accordance with the system to be laid down in the Executive Regulations of this Law.
9. The Dewan shall ensure that the instruments and documents concerning payments made under contracts exceeding L.D. 100,000 but not exceeding LD. 500,000, are correct and proper immediately after payment is effected. The Executive Regulations will show the procedures for control in these cases.
10. The provisions of this Article will be applicable to all Municipalities and Public or Public organisations and Corporations subject to the control of the Dewan.
In order to undertake its responsibilities as provided for in this law, the Dewan shall examine the accounts and documents supporting these either at its Headquarters, and its branches or at the offices of the and authorities the accounts of which are examined, and may at any dm hold surprise examination or inspection.
The Dewan shall have the right to examine, in addition to the documents mentioned in Laws and Regulations, any other documents, books or papers it deems necessary for audit, and may impound any such documents, instruments, records or papers considered necessary. It may ask any person responsible for these documents, records or papers, or for keeping them, to give a certificate signed by him proving the correctness of such documents, books or papers.
The authorities subject to the control of the Dewan shall submit their accounts to the Dewan whenever it so requests and the Dewan is entitled to contact, either directly or writing, any Director or Controller of accounts, Chief Accountant and any person who represents them at these authorities, and may obtain, from them any statement it deems necessary.
The Dewan shall audit all adjustment accounts whether Trust, Deposit or Current accounts to ensure the correctness of operations related thereto and to ensure that the figures entered into these accounts are properly supported.
The Dewan shall also audit the accounts of the loans and advances made by the Government or by any Public Organisations or Public Corporations, and ensure that the original loans and advances plus any relevant income are duly paid into the treasury according to the conditions set forth.
The officials responsible for authorising the expenditure of any allocated provision for any Ministry, Department, Public Organisation or Corporation, shall consider the remarks put forward by the Dewan and answer forthwith its queries. The Dewan shall inform the authorities concerned of its observations arising from the audit so that appropriate action can be taken. In the event of any difference of opinion arising between the Dewan and any of the Ministries, Public Organisations, or Public Corporations such difference shall be submitted to the Council of Ministers for decision.
The Dewan has the power to ask appropriate administrative authorities to undertake such measures as may be necessary with regard to the collection of moneys due to the Government or to any Public Organisation or Public Corporation where appropriate action for collection has not previously been, taken, or of moneys spent without justification and in contravention of Laws or Regulations.
The Head of the Dewan shall draw attention of any Minister concerned to avoidable losses or unnecessary burdens on the financial resources of the state, which may come to his notice, and which arise or may arise from a particular line of financial policy which is being followed by his Ministry or any Department thereof.
He shall also advise the Minister of Treasury of the cases where, in his opinion, any Law or Regulation affecting the finance or accounts, operates, or is likely to operate, in a manner prejudicial to the interests of the state or otherwise requires amendment.
Any action taken under this Article shall be advised to the R.C.C. and the Council of Ministers.
The Head of the Dewan, after consultation with the Minister of Treasury, may propose any Regulations he may deem necessary to secure the proper enforcement of this law and in particular the Regulations necessary to indicate the appropriate system of keeping the accounts, public or private moneys or properties, and of examining and auditing the accounts subject to its control. Such Regulations will be issued by decisions of the Council of Ministers.
The Dewan shall examine Financial and Accounting Regulations in force in the Ministries, Government, Departments, Public Organisations and Public Corporation, and Municipalities to ensure their efficiency, and shall propose amendments to remedy defects inherent therein.
No financial Regulations or Instructions shall be issued by these authorities without prior reference to the Ministry.
1. Ministries, Governments, Departments, Municipalities, Public Organisations and Corporations shall report to the Dewan any financial contraventions immediately after discovery, and shall report to the Dewan the result of investigations carried out on these.
The Head of the Dewan may at his discretion, carry out a further investigation and may instruct that administrative or penal action be taken.
2. The Dewan shall report any financial contraventions discovered by it to these authorities who will be required to investigate these and submit the result to the Dewan.
The following shall be considered financial contraventions:
1. Failure to comply with the financial provisions and rules of the Constitutional Declaration.
2. Failure to comply with the Budget rules and the principles of preparation and execution of the Budget.
3. Failure to comply with the provisions laid down in the Regulations of Tenders and Auctions, or of Stores, or Purchases, or other Regulations, or with financial or accounting systems.
4. Every wrong or negligent act resulting in the issue of public funds, or loss of dues to Government or to Public Organisations or Public Corporations or any other Authority subject to the Control of the Dewan.
5. Failure to supply the Dewan with copies of Contracts, agreements or tenders or any other documents as required by this Law in order to execute its provisions.
6. Failure to supply the Dewan without proper reason, with accounts, or supporting documents where these are required by it.
7. Failure to reply to queries or remarks or correspondence, in general, of the Dewan, or to delay in answering these within reasonable time. Giving an answer in the purpose of deferment of action and procrastination shall not be considered of action and procrastination shall not be considered as a reply.
8. Failure in taking action on the contraventions reported by the Dewan, or in general any action or attitude that hinders the Dewan from exercising its financial control in accordance with the provisions of this Law.
The Head of the Dewan is empowered to ask appropriate authorities to suspend any public official or to take disciplinary action against him in circumstances laid down in Article 31 of this Law and para 11 of Article 46 of the Civil Service Law No. 19 of 1964, or in accordance with the rules enforced by the authorities subject to its control. If the request of the Dewan is not responded to within ten days of the date of notification to the authority responsible, the Dewan shall bring the matter to the notice of the R.C.C. or the Prime Minister according to competence.
1. The head of the Dewan may request any official employed by the authorities subject to the control of the Dewan or any person charged with public Service, to pay any amount, if in his opinion such official or person has paid or ordered to be paid from public moneys any amount without proper authority or in contravention of with down procedures or to pay compensation in. respect of any losses of money or damage to stores or properties or other damage affecting Government or any Public Organisation or Public Corporation, or any other authority subject to its control, caused by the officials or the person's negligence or his wilful wrong act. The amount of such compensation shall be determined by the Head of the Dewan of Audit.
2. Appeals against such decision will be submitted to a Committee which shall be convened and presided over by an Advisor of the Supreme Court, and shall have as Members the Head of the Legislation and Litigation Department in the Ministry of Justice and the Under Secretary, Ministry of Treasury. The Committee may listen to the appellant and carry out its investigations. The submissions of an appeal does not suspend the decision of the Head of the Dewan unless the Committee so directs.
3. Decisions of the Committee regarding appeals will be by majority vote and will be final. Appeals against these will be only before the Supreme Court.
The Regulations necessary to execute this Law shall be issued by decision of the R.C.C. on recommendations made by the Prime Minister.
The provisions of this Law, with the exception of Article "6" shall be applicable to the head of the Dewan, the Under Secretary, as well as the present Members and the Staff of the Dewan.
As an exception to the provisions of Article "6" of this Law non-Libyans in possession Of the qualifications mentioned in that Article may be appointed during the 3 years following the date on which this Law is enforced. However Libyans with technical experience in Auditing and Accountancy or in possession of intermediate qualifications may be appointed during the said period and whenever necessary.
The Dewan of Audit Law issued on 10 Shaaban 1386 corresponding to 27th November, 1966 and any other provisions contrary to provisions of this Law, shall be repealed.
The Prime Minister and Ministers, each within his own competence shall execute this Law which shall come into force with effect from the date of its publication in the "Official Gazette.
-Issued on 7th Shaaban 1395 H. corresponding to 14th August 1975.
The Revolutionary Command Council
Major: ABDULASALAM A. JELOUD
Prime Minister.
