The State Financial and Administrative Audit Institution (the “Institution”) in the Sultanate of Oman is an independent entity reporting directly to His Majesty the Sultan. It is a governmental institution and has the very critical job of supervising financial and administrative funds belonging to or managed by the State. It is also responsible for protecting public funds, properties and interests by virtue of the State’s Financial and Administrative Audit Institution Law promulgated by RD 111/2011 (the “State Audit Law”) and RD 112/2011 issuing the law on Safeguarding of Public Property and Preventing of Conflict of Interest (the “Law on Public Funds”).
In keeping with the State Audit Law and the Law on Public Funds, the Institution has now issued a Ministerial Decision on 3 April 2013 introducing the new State Audit Executive Regulations (the “Regulations”).
Thursday, June 27, 2013
The Executive Regulations of the State Audit Law - An Analysis
Monday, June 24, 2013
Construction Contracts - Avoiding Common Pitfalls
Over the past decade, our Muscat-based Construction Dispute Resolution Team has advised on numerous disputes between parties to construction contracts. On review of the reasons for why construction contracts ended in dispute, we have identified a number of common themes, and how to avoid these problems.
It is often simple in retrospect (and outside of the pressure to meet project milestones/manage workforce) to identify where problems in a construction project arose. The challenge to running an efficient and financially successful project is to identify the risks at the outset, and put robust procedures in place to avoid potential problems arising. Although some of the recommendations set out below may seem obvious and straightforward, it is telling that, in many of the construction disputes that have crossed our desks, these issues were routinely neglected or poorly executed.
Thursday, June 13, 2013
Important Legal Updates this Month
Omanisation in Insurance Private Sector
Ministerial Decision No. 192/2013 issued by the Ministry of Manpower specifies that the Omanisation percentage in the insurance private sector shall be 65% of the total manpower of the establishment. The Decision is effective from the date following its publication in the Official Gazette.
Amendment to Provisions regulating Collective Negotiation, Peaceful Strike and Shutdown
Ministerial Decision No. 189/2013 issued by the Ministry of Manpower amends some of the provisions regulating collective negotiation, peaceful strike and shutdown. The Decision stipulates setting up of a Committee to facilitate the negotiation procedures. It also provides timelines for settlement of collective labor disputes by the Committee.
Executive Regulations of State Audit Law
Executive Regulations to the State Audit Law (promulgated by Royal Decree No. 111/2011) are issued under Decision No. 13/2013 by the State Audit Institution (“SAI”). The Executive Regulations detail the functions of the SAI, its powers, responsibilities and the rules of enforcement.
Tuesday, June 11, 2013
Related Parties and Approval of Related Party Transactions
CMA Circular 14 of 2012 made changes to the definition of an “independent director” and also led to amendments to the definition of a “related party”.
Monday, June 3, 2013
The Board of Directors' Report
To help ensure the effectiveness of the internal regulations of management of public joint stock companies in Oman, the Capital Market Authority (“CMA”) issued Administrative Decision 4/2002 which requires the board of directors of public joint stock companies to produce a directors’ report for each financial year.
The directors’ report provides an opportunity for the shareholders to review inter alia the company’s performance as well as fiscal information for the past year and to better understand the direction the business will take in the future.
