المملكة: Immediate dismissal and prosecution of the principals involved in mixing endowment funds – urgent

Released The General Authority for Endowments A firm reference document under the title “100 Questions and Answers on Endowment Issues,” in which it put an end to wrong financial practices in endowment management, stressing that mixing endowment funds with the principal’s private funds without legal or regulatory justification is a crime requiring immediate dismissal and accountability.

This came Regulatory actionto protect the endowment assets from infringement or negligence, as the Commission has categorically clarified that the principal’s commission of any crime prejudicial to honesty and honor, or his refusal to open an independent bank account in the name of the endowment, places him at risk of isolation and accountability through the competent judicial channels or the Commission’s decisions.

Stressed New RegulationsFailing to enable inspectors of the General Authority for Endowments to conduct office or field inspection, or withholding the necessary documents and information from them without legitimate justification, is considered a major reason for terminating the governor’s mandate and replacing him with another.

The Authority obligated the dismissed supervisor to immediately stop any actions related to the endowment as soon as the decision to dismiss him was issued, because his mandate had lapsed by law, making any action he took after that invalid and insignificant.

The dismissed administrator must fully disclose to the Authority all assets, documents, and financial data related to the endowment, and immediately hand over the trust to the replacement administrator, while notifying the Authority of the completion of the delivery and receipt process to ensure the continuation of the work of the endowment without disruption.

In the context of enhancing transparency, legislation has granted any beneficiary of the endowment or interested party the full right to submit an official report to the General Authority for Endowments against the negligent administrator, or to file an accountability and dismissal lawsuit before the Endowment departments in the personal status courts.
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The guideline confirmed that the fictitious actions carried out by the superintendent in the name of the endowment for the purpose of circumventing the regulations are serious violations that require urgent intervention to protect the endowment and correct its course.

With regard to financial powers, the Authority prohibited administrators from lending endowment funds to others unless there is an explicit text from the donor allowing this, or after obtaining judicial permission proving that this is in the interest of the endowment.

The administrator also does not have the right to dispose of endowment assets by sale or exchange except in cases of extreme necessity required by the interest, and provided that prior permission is issued from the competent court justifying this disposition.

The document clarified that The endowment has a legal personality and a financial liability completely independent of the donor and the beneficiaries, which gives it legal immunity that prevents seizure of its assets to satisfy the donor’s personal debts or entry into bankruptcy procedures.

The Authority expanded the concept of endowed funds to include modern assets, confirming the validity of endowments of stocks, company shares and money, on the condition that they are invested in safe ways that guarantee the survival of the asset and the flow of benefit, which opens new horizons for the non-profit economy.

It indicated that documentation Endowing the endowment officially at the Notary Public and registering it with the Authority is a mandatory step to guarantee the rights of the endowments and beneficiaries, and to enable the endowment to acquire the official status that authorizes it to open bank accounts and conduct legal transactions.

With regard to expenses, the organization obligated supervisors to document all financial transactions and prepare periodic reports, and not to exceed the donor’s condition in disbursing rewards or operational expenses except within the limits required by the interest of the endowment and under judicial supervision.

The Authority resolved the controversy over unknown endowments, confirming its direct responsibility for inventorying them and assuming oversight over them in the absence of the donor’s condition, while emphasizing that endowment rights do not lapse by the statute of limitations, no matter how long. Time.

The Authority concluded its assurances that these strict measures aim to strengthen confidence in the endowment sector, ensure that the revenues reach those who deserve it according to the conditions of the endowments, and transform endowments into sustainable development entities that contribute effectively to the national economy.