Government bans deals with businesses linked to senior employees

The government has introduced a prohibition to prevent state entities from entering into business dealings with persons related by family or business to Chief Financial Officers in the government, installing a requirement for permits to be obtained for business interactions with companies linked to state employees.

According to the Ministry of Finance's directives as published under the Public Finance Act, state offices are prohibited from entering into business dealings with parties having family or business ties with the Secretary General, top procurement and finance officers and other persons holding other executive positions in the government. According to the new rules, only the Ministry of Finance can authorize such action in unavoidable circumstances.

In addition to this, the rules state that a public office may conduct business transactions with a person who is related by family or business with other public employees only with a special permit. The stipulations further call for certain circumstances to be considered in granting authorization in such cases, and that a thorough record be maintained of permits issued through this process. The new directive also states that such permissions to do business cannot be given permanently by offices of the state.

According to the Ministry of Finance, the family relationships to be considered in authorizing business under the new directive include parties related closely to top officials such as their parents, spouses, children, siblings, brothers or sisters, as well as stepchildren and family members of spouses.

If the business or vendor in question pays a salary or wage to a public servant, that entity would also be considered to be a related party.

Action will be taken against those who fail to comply with the new directives as issued by the Ministry of Finance under the Public Finance Act.