The government has rejected a draft law proposed by MPs Ahmed Qarata and Abdulhakeem Al Shenu concerning annual bonuses for the chairmen and board members of government authorities and companies. The proposed bill would have allowed bonuses to be paid if profits were achieved, as per the annual financial report and approved by the Minister of Finance and National Economy, but prohibited bonuses in cases of financial losses. The government argues that government authorities are not established to generate profit but to manage public services and specific sectors to achieve social and economic goals aligned with the public interest.
Government bodies prioritize long-term national interests over profit and work towards strategic goals set by the state. They do not necessarily produce traditional financial reports and are subject to government oversight mechanisms ensuring efficient resource utilization for strategic objectives. The government stated that linking bonuses to profits could create undue pressure and negatively impact the quality of public services. Instead of profit-based bonuses, financial incentives should be based on criteria such as improved service quality or environmental sustainability.
State-owned companies are considered private legal persons with independent legal personality and financial accounts that operate under private law to generate profit to support national development. The government emphasized that these companies have specific legal rules within their bylaws offering administrative and financial flexibility in determining work rules and bonuses aligned with their objectives, strategies, and commercial practices. The proposed bill was argued to interfere with this flexibility and contradict the role of these companies in achieving national development goals beyond mere profit maximization, disrupting the balance between financial and national objectives.
In conclusion, the government, while appreciating the parliament’s role, urged reconsideration of the bill citing potential negative impacts on government authorities and companies. It stressed the need to maintain a balance between financial and national objectives to ensure the effectiveness of the legal system and overall public interest. The rejection of the proposed bill highlights the government’s commitment to prioritizing national goals and public service quality over profit-based incentives for government authorities and state-owned companies, emphasizing the importance of maintaining a strategic focus on societal welfare and economic development.
