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The Council of Ministers

ANU-KRET (SUB-DECREE) 

SUB-DECREE NO. 17 ON THE ORGANIZATION AND RESPONSIBILITIES OF THE COMMITTEE OF FINANCE
 INSPECTION

Phnom Penh, August 04, 1984

  • Seen the National Constitution of the People’s Republic of Cambodia (PRC);

  • Seen the Decree Law No. 03 dated February 10, 1982 on the Organization and Functioning of the Council of Ministers

  • Seen the Decree Law No. 07 dated July 13, 1982 on the Power to Legislate;

  • Seen the decision of People’s Revolution Council of Cambodia on the Duties and the Organization of the Ministry of Finance;

  • Pursuant to the request of the Ministry of Finance.

 

It Is  Hereby Decided

  

Chapter I: General Regulations

Article 1:

To establish a Committee of Financial inspection (CFI) for controlling the financial and accounting system in the People’s Republic of Cambodia.

Article 2:

The CFI shall control all Ministries, all public sectors, people’s organizations, and economic organizations from the central Governments to local administrations that are the recipients of credits/funds from the budget of the Government. The Ministry of Defence and Ministry of Interior and some sectors of the municipal and provincial administration  under the control of both ministries shall be excepted. The permission from the Council of Ministers is necessary to inspect these organizations.

Article 3:

All organizations that are subject to control and inspection, when advised by the CFI that the Ministry of Finance has authorised CFI to conduct an inspection, shall reply and comply immediately. Failure to reply, and provided any loss to the state properties were incurred, will subject these institutions to liabilities. Persons who are to be inspected cannot request for a postponement of the inspection.

 

Chapter II: Organization of the CFI

Article  4: 

The CFI shall exist at:

  • the Central CFI (centralised in Phnom Penh)

  • the Local CFI (in the provinces and municipalities)

Article 5:

the Central CFI shall have only one director assisted by one or two deputy directors and staff personal. The rank of the Central CFI’s director shall be equivalent to a Vice-Minister of Finance. The rank of the Central CFI’s deputy director shall be equivalent to a director or deputy director of other departments. 

the Local CFI shall have only one director assisted by one deputy director and staff personal (local CFI including provinces and municipalities). They shall report their activities to the Ministry of Finance as well as to the Central CFI.

The rank of the Local CFI’s director shall be equivalent to the deputy director of the finance office of the provincial administration (the same person holds both position of director of the CFI and the deputy director of the finance office).

The rank of the Local CFI’s deputy director shall be equivalent to the director of the finance bureau of the provincial administration (the finance bureau is part of the finance office).

Article 6:

  • the Director or deputy director of the central CFI shall be appointed or terminated/ removed by the Council of Ministers at the request of the Ministry of Finance.

  • the Director or deputy director of the local CFI shall be appointed or terminated/ removed by the Minister of Finance at the request of the governor of that province or municipality.

Article 7:

  • the Central CFI shall be under the direct authority of the Ministry of Finance.

  • the Local CFI shall be under the direct authority of the director of the finance office in that province or municipality.

 

Chapter III: the Duties and the Responsibilities of the CFI

Article 8:

The CFI shall have the following duties:

1.         Check the revenues and expenditures of the budget of Government in all sectors and all economic organizations.

2.         Verify and check the asset management of the state, assure efficiency, in the usage of labor and equipment, capital and credits of all ministries and local state enterprises.

3.         Check the financial operation, accounting, credits, cash of all ministries and  local state enterprises.

4.         Control the financial management operations, the accounting of financial institutions that are under the financial sectors.

5.         Control the financial operations of banks, savings institutions, credit institutions and cash flow.

Article 9:

The CFI have the following responsibilities:

1.         Not give any prior notice of inspection (surprise visits) except for the Ministry of Defence and the Ministry of Interior and other sectors which fall under the jurisdiction of both Ministries which require prior permission from the Council of Ministers. Without such permission the CFI cannot control or check them.

2.          Request the organization which is to be inspected to report orally or in writing about their activities and to produce for inspection all documents, books, accounting lists, cash and warehouse lists...which are kept by them.

3.         Join conferences that are useful for financial management or request to organize/participate in conferences which are necessary.

4.         If it is found that economic organizations or ministries have any wrongdoings or problems relating to finance and accounting, CFI can request them to take corrective measures immediately.

5.         If the organization refuses to co-operate with CFI, it shall have the right to request assistance or report the matter to higher authority in the organization to intervene.

6.         Request to the Ministry of Finance, ministries to be controlled or governors of local administrations to:

  • Stop to support credit if necessary.

  • Prevent access to assets/properties if CFI thinks that it’s necessary to control or protect the resources of the state (CFI can order not to dispose them).

  • Give incentives to encourage persons to practice good financial management or persons who cooperate with CFI to obtain good results e.g. provide document and show additional evidence.

7.         Request to the authority that these organizations rectify their economic management, financial management, and accounting management if changes are deemed necessary.

 

Chapter IV: Working Arrangements

Article 10:

Before CFI can check documents of economic organizations they must show authorization paper. That authorization, if the check is on a central Government shall be signed by the Minister of Finance; and if the check is on a provincial administration, it shall be signed by the governor of the provincial administration or the director of the finance office of the provincial administration.

Article 11: 

During the inspection, if major wrongdoings are detected relating to finance accounting or corruption, CFI shall send a written report to the court.

Article 12: 

On completion of the inspection, CFI shall submit a written report signed by the inspectors who conducted the inspection, the chief and the accountant of that ministry, economic organization, state owned enterprise, or company.

  • In the event a ministry, economic organization, state owned enterprise, or company to be inspected don’t agree  with some points in the report, they can file their response on that particular finding in the report.

  • the Director of CFI shall send a written report together with his comments to the authority of the inspected organization for resolution.

Article 13:

The Director of CFI shall report their activities every month, every three months, every six months, and annually.

The report of the Central CFI shall be sent to the Council of Ministers, the Minister of Control Affairs of State, the Minister of Finance and ministers of ministries to be inspected.

The report of the Local CFI shall be sent to the People Revolution Committee of the municipality or the province, the control committee of the municipality or the province, and the Central CFI.

 

Chapter V: Final Regulations

Article 14:

All regulations which are contrary to this Sub-Decree shall be considered null and void.

Article 15:

The Ministry of Finance, the Ministry of Control Affairs of State, the People Revolution Committee of the municipality or province shall implement this Sub-Decree in carrying out their duties.

Article  16:

This Sub-Decree comes into force from the day it is published.

                                                                    For the Head of the Council of Ministers
                                                                                           HUN SEN