Hassan Al -Sitry
The Shura Council approved a draft law amending Article (18) of the Social and Cultural Clubs Law, special bodies working in the field of youth, sports and private institutions, issued by Decree Law No. (21) of 1989.
The decision of the Services Committee, Hala Ramzi, indicated that the draft law aims to address what is marred by Article (18) in place High, in order to achieve a guaranteed financial return for associations that contributes to the supply of their budget, and its efforts aimed at achieving their goals optimally.
The committee’s decision stated that the draft law was keen to ensure the proper management of association’s funds, preserving their assets from financial risks, and protecting them from waste or exploitation, so it has created tight controls and accurate rulings, determining the legal framework of the association’s investments, in a manner that guarantees the integrity of the disposal, the correctness of the decision, and the guidance of the administration, through a set of principles and ruling foundations that can be detailed as the following: Not entering into Financial speculation, that investment be safe, and in non -investment tools with high risk, and that investment in excess funds be on the association’s needs, and to limit investments in the local market.
The decision of the committee indicated that enabling associations to invest their money in legitimate and safe ways is a basic pillar for achieving sustainability, and a strong pillar to ensure independence, as the draft law achieves an ideal integration between achieving the financial sustainability of associations on the one hand, and stimulating the national economy on the other hand.
The head of the Services Committee indicated. Jamila Al -Salman that the draft law comes to support local civil societies, and to enhance their financial competence by providing her with the opportunity to invest the surplus of her money safely.
The number of associations covered by the law is about 668 associations, 640 of which are under the umbrella of the Ministry of Development, 3 under the umbrella of the Ministry of Information Affairs, and 25 of them under the umbrella of the Culture and Antiquities Authority. The project also includes a set of legal controls that regulate the investment process, and define safe areas for it, while providing effective institutional control.
And d. Jamila Al -Salman that the draft law aims to achieve returns that support associations in achieving the goals for which they were established, which contributes to stimulating the wheel of the economy in the Kingdom of Bahrain, and provides a level of control over these operations. She said: «Through our meetings with government agencies, it turns out that the government has directions to issue decisions that contribute to the optimal application of the law.
There are also currently effective decisions that guarantee the exercise of the concerned authorities for their supervisory powers. Moreover, an amendment to the sanctions material has been included, which is an amendment to support it because it focuses on unifying the issue, which contributes to enhancing the accuracy of the legislation and keeping pace with the principle of legal certainty.
The First Vice -President of the Shura Council, Jamal Fakhro, explained that the main goal of the proposal submitted by the Shura Council regarding the amendment of the law was to remove the confusion surrounding the concept of financial speculation.
This ambiguity was evident during discussions with the concerned authority, where the term financial speculation was explained to include all forms of investment, including deposits in US dollars in Bahraini banks.
As a result, the ministry has addressed some associations that it is necessary to liquidate their investments, knowing that these investments are a major source of income on which these associations depend. This issue was discussed with the former Minister of Social Development, as it was agreed to postpone decisions related to those associations.
Regarding the amendment of the article, Fakhro emphasized that the proposed amendments are necessary, and that the additions submitted are generally acceptable, but the details require more caution. He expressed his fear of the return of the previous restrictions that were hindering the associations’ ability to invest financial surpluses of a limited nature.
He also warned of the possibility of the ministry providing extra details on how to implement investments, and the consequent trends that may put the ministry in an embarrassing situation if agreed to an investment that is later revealed that it is unsafe, which raises questions about the authorities responsible for the consequences of these decisions.
Fakhro also stressed the need to take into account that the associations possess administration boards that bear full responsibility for their decisions.
In this context, he pointed out the importance of setting organizational restrictions that do not amount to the extent of the exhaustion of associations, so that the implementation of each investment requires a decision of the General Assembly. At the end of his speech, he called for simplifying organizational and administrative procedures, so that the law is applied in a way that facilitates the work of associations, and enhances their ability to rationalize instead of complicating them.
