Decree No. (68) of 2012 on approving the organisational structure and competences of the Ministry of Finance and regulating the executive unit thereof

Cabinet Decree No. (68) of 2012

on approving the organisational structure and competences of the Ministry of Finance

and regulating the executive unit thereof

The Cabinet

Upon review of:

• The Constitutional Declaration;
• The Law of the Financial System of the State, and budget, accounts, and inventory regulation, and the amendments thereof;
• Law No. (68) of 1972 AD on the Customs Guard;
• Law No. (19) of 1428 FBP on providing the services of administrative units to their employees, and the executive regulation thereof;
• Law No. (13) of 1430 FBP on planning, and the executive regulation thereof;
• Law No. (1) of 2005 AD on banks;
• Law No. (10) of 2010 AD on customs;
• Law No. (12) of 2010 AD issuing the law on labour relations, and the executive regulation thereof;
• National Transitional Council Resolution No. (174) of 2011 AD on determining the government structure;
• National Transitional Council Resolution No. (184) of 2011 AD on approving the transitional government;
• Cabinet Decree No. (1) of 2012 AD on determining the competencies of deputy ministers and assistant deputy ministers;
• Cabinet Decree No. (32) of 2012 AD on approving the organisational structure and competences of the Ministry of Oil and Gas and regulating the executive unit thereof;
• “Former” General People’s Committee Resolution No. (814) of 1990 AD on establishing the Tax Administration;
• “Former” General People’s Committee Resolution No. (104) of 2007 AD on establishing the Fund for Liquidation of Dissolved Public Companies and Bodies, and the amendment thereof;
• “Former” General People’s Committee Resolution No. (273) of 2008 AD on adding an organisational division to the executive unit of the General People’s Committee for Finance;
• “Former” General People’s Committee Resolution No. (83) of 2009 AD on approving provisions relating to resolutions issued by the Committee.
• The proposal of the Minister of Finance in his Letter No. (67) of 21/01/2012 AD;
• The Cabinet’s decisions in its fifth ordinary session of 2012 AD;

has decided:

Article (1)

The organisational structure and competences of the Ministry of Finance shall be approved and its executive unit regulated in accordance with the provisions of this decree.

Article (2)

The Ministry of Finance shall draw up and implement the plans and programs of financial policies in accordance with the legislation in force. It shall administer State funds, prepare the State budget, identify the funding resources thereof, their collection, expenditure and disposal methods, follow up on and review the implementation thereof, and prepare its final accounts. For this purpose, the Ministry of Finance shall have the following competences:

1. Enforce the legislation, regulations, and resolutions that regulate the work of the Ministry of Finance.
2. Oversee State revenues, expenditure, public funds, assets, properties, treasuries, and inventories; monitor the collection and supply of revenues in accordance with the regulating legislation thereof; collect any funds due to the State treasury, and recover any amounts spent or disposed of in violation thereof.
3. Assist other concerned entities in the examination, coordination, and assessment of strategies and policies pertaining to economic and social development, and present its proposals in this respect to the Cabinet and other concerned entities.
4. Prepare and propose financial policies and the plans and programs for their implementation.
5. Prepare the State budget, identify its funding resources and their collection; conduct the necessary adjustments thereof; keep, monitor, and close financial records in accordance with the regulating legislation.
6. Supply public entities with their allocated budget allocations in accordance with the financial arrangements established for this purpose.
7. Guide and follow up on the management of State accounts, oversee the same and prepare the final accounts thereof.
8. Participate in proposing legislation that regulates developmental and monetary plans and policies.
9. Conduct studies on the Ministry’s activity and prepare evaluation studies thereof.

10. Examine and follow up on technical and financial relations with other countries and international and regional organisations; participate in conferences and joint committees; and draft and implement agreements within the framework of the relevant adopted policies in coordination with the concerned entities.

11. Take the necessary measures to follow up on the collection and recovery of State debts inside and outside the country in coordination with the concerned entities.

12. Provide an opinion on the issues pertaining to the Ministry’s work that are referred to the Cabinet.

13. Examine savings incentives, invest national savings in the development of the national economy, and submit relevant proposals to the concerned entities.

14. Study draft agreements on technical cooperation that are to be concluded with other countries and with international and regional organisations, follow up on their implementation, and coordinate their use in serving the development objectives in Libya.

15. Prepare and develop financial control systems in accordance with the legislation in force, and enforce the same with regard to all the entities that finance their budgets from the state budget, whether totally or partially, issue the necessary publications and circulars to improve financial performance and raise awareness about the financial legislation in force.

16. Assign delegates of the Ministry of Finance to companies and institutions that are wholly or partially owned by the State in the cases required by law.

17. Delegate financial comptrollers and assistant comptrollers to other ministries and entities, and nominate the same in Libyan embassies and diplomatic missions abroad in accordance with the legislation in force.

18. Issue appointment, promotion, transfer, re-assignment, and secondment decisions based on the Ministry’s budget and approved staff and in accordance with the rules and conditions set forth by the legislation in force.

19. Conduct the necessary investigation procedures related to tax and customs evasion and any other financial evasion of any dues to the State budget.

20. Oversee Libya’s contributions to financial, regional, and international funds and institutions.

21. Exercise any other competences entrusted thereto by the laws, regulations, and decisions issued by the competent entities.

Article (3)

The Ministry shall have one or more deputies who shall exercise the functions prescribed for deputy ministers by the legislation in force. The deputy minister shall work under the minister’s supervision.

Article (4)

The following entities shall report to the Ministry of Finance:

1. Customs Administration
2. Tax Administration
3. Fund for the Liquidation of Dissolved Public Companies and Bodies
4. Savings and Real Estate Investment Bank
5. Alrefi Bank
6. Information and Documentation Centre
7. General Company for Administration Centre Services
8. National Investment Company
9. Departments of financial services control

Article (5)

The organisational structure of the Ministry of Finance’s executive unit shall consist of the following organisational divisions:

1. Financial Resources Department
2. Budget Department
3. Treasury Department
4. Follow-up Department
5. Accounts Department
6. Financial Comptrollers Department
7. Financial Institutions and Technical Cooperation Department
8. Administrative and Financial Affairs Department
9. Legal Affairs Office

10. Internal Review Office

11. Office of the Martyrs of Duty

12. Office of the Ministry’s Affairs

Article (6)

The Financial Resources Department shall have the following competences:

1. Follow up on the data related to the revenues of local administration units, central sectors and services, and other entities concerned with the collection of public funds, through the monthly reports stipulated by the budget, accounts, and inventory regulation.
2. Submit proposals regarding the organisation of self-generating revenues that are collected from other ministries and public entities to ensure that they are transferred to the State budget.
3. Follow up on the allocations to public entities’ electricity consumption expenses, and match them with the concerned company.
4. Establish a settlement mechanism for the dues of public companies adopted in the State budget, and register the same in the accounting books in coordination with the entities related to the Ministry.
5. Prepare periodic and annual follow-up reports on returns and the community’s share.
6. Take the necessary procedures and arrangements to defend the rights of the Treasury and determine the amortisation rate of the companies’ capital expenditure and financial assets.
7. Follow up on central deductions related to civil servants, and compare the same with the competent entities in order to take the necessary adjustment measures.
8. Prepare periodic reports on the Department’s work progress and refer the same to the competent entities in the Ministry.

Article (7)

The Budget Department shall have the following competences:

1. Prepare the annual publication on the rules of drafting the State budget, and distribute the same to the entities whose budgets are subject to the Financial System Law of the State.
2. Receive and collect State draft budgets sent by the various administration units that are subject to the Law of the Financial System of the State, and refer the same to the financial committees along with its observations thereon.
3. Draft the State budget.
4. Keep the records related to the State budget allocations and follow up on any changes thereto.
5. Prepare statements on the liabilities and expenditure of development projects, and update the same every three months.
6. Coordinate with the competent department at the Central Bank of Libya regarding the disposal of the State budget accounts, and ensure that the sums allocated in the budget are included in its accounts on a regular basis.
7. Prepare and issue memoranda and reports related to the proposal of the State draft budget, and take part in drafting its own draft law.
8. Follow up on the State budget revenues in coordination with the concerned entities, and advise of any deviations upon their occurrence.
9. Prepare financial authorisations relating to the State budget in the form prescribed by law, and refer the same to the concerned entities after their approval.

10. Follow up on recurrent spending and ensure their gradual expenditure throughout the financial year as much as possible, and follow up on disbursement based on work requirements and the fulfilment of its actual needs.

11. Follow up on allocation surpluses before the end of the financial year, return the same to the public treasury, and take relevant legal procedures in this respect in accordance with the regulating legislation thereof.

12. Examine the requests of different entities regarding the amendment of any budget item thereof, and prepare relevant reports.

13. Prepare periodic reports on the progress of the State budget’s implementation.

14. Prepare periodic reports on the Department’s work progress, and submit the same to the competent entities at the Ministry.

Article (8)

The Treasury Department shall have the following competences:

1. Take the necessary procedures to open bank accounts for the State, monitor their deposits and withdrawals, conduct settlements thereof, and submit periodic reports thereon.
2. Submit proposals to determine which payments are payable in cash in conformity with applicable financial legislation.
3. Propose the elements for authorising the signing of Treasury accounts bonds to take the necessary procedures in their regard.
4. Take the necessary procedures to print the financial receipts stipulated by the budget, accounts, and inventory regulation, review the same to ensure their sequential order, and keep a copy of the certificate of the number of printed receipts issued by the printing facility.
5. Mobilise State budget allocations for public entities in accordance with established financial arrangements.
6. Receive the Treasury cash statement at the end of every month from the financial services comptrollers at the local administration units, and take the necessary actions in their regard in accordance with the legislation in force.
7. Establish the necessary mechanism for following up on daily cash registers and imprest records of public entities, and coordinate with the financial services comptrollers at the local administration units, the Internal Review Office and the Accounts Department in order to ensure the implementation of the legislation in force.
8. Keep records of foreign currency payments in order to provide the concerned entities with the necessary information to conduct studies on the use of foreign currency.
9. Participate in annual inventory committees and in committees in charge of the destruction of valuable documents or similar committees, submit the necessary reports on their work progress, and keep records of their activity in accordance with the relevant established norms.

10. Take the necessary procedures to close the Treasury accounts and refer them to the Accounts Department within the periods stipulated by law.

11. Take the necessary procedures regarding the remarks of the Ministry’s Internal Review Office with relation to the Department’s affairs.

12. Prepare periodic reports on the Department’s work progress and submit them to the competent entities at the Ministry.

Article (9)

The Follow-up Department shall have the following competences:

1. Follow up on the implementation of the State budget and prepare the follow-up reports prescribed by law.
2. Assess major projects under execution to detect any deviation in their economic and technical feasibility and identify required solutions, including the proposal to amend, postpone, or stop the project.
3. Follow up on the execution of development projects through their reporting entities in order to determine the extent to which they are achieving their goals.
4. Signal weaknesses or flaws in sectoral and regional coordination, which may limit the benefits of the projects after completion.
5. Contribute to the preparation of draft plans and programs for the State budget with the Ministry’s competent departments, and identify the proper needs in coordination with the concerned entities based on the data provided by such entities.
6. Follow up with public ministries and services on the data collection process regarding the implementation of the State budget, with the right to discontinue or recover the amounts released to the concerned entity, if the latter fails to provide the necessary data.
7. Conduct field visits to determine the extent to which the State budget is implemented.
8. Follow up on Cabinet decrees and directives pertaining to the work of the Ministry and its affiliated entities, and monitor their execution.
9. Follow up on the resolutions of the Ministry of Finance that pertain to the work of the Ministry and its affiliated entities.

10. Follow up on the preparation of responses to the Audit Office.

11. Follow up on the performance of the departments, offices, and entities affiliated with the Ministry, and submit periodic reports thereon.

12. Prepare periodic reports on the Department’s work progress and submit them to the competent entities at the Ministry.

Article (10)

The Accounts Department shall have the following competences:

1. Organise accounting records in accordance with the Law of the Financial System of the State and with the budget, accounts, and inventory regulation, and classify revenues and expenditures in the State budget.
2. Take the necessary procedures regarding the copying of daybook pages and the receipts included in such pages and submitted by the financial services control departments at the local administration units, analyse the same, and submit proposals in their regard.
3. Collect the monthly accounts of all the public entities financed by the State budget, including those abroad, and take the accounting procedures relating to the preparation of reports for closing such accounts in accordance with the relevant legislation and regulations in force.
4. Prepare the State’s final account within the period prescribed by law.
5. Follow up on accounts receivable and payable outside the budget, settle the same, and prepare the necessary data thereon.
6. Keep a record of the employees who are authorised to keep the custody and imprest record at the public entities in accordance with established rules, keep the statements of the remaining imprest balance for each employee, and follow up on their closure at the end of each financial year.
7. Coordinate the granting of permission to public entities to open bank accounts, oversee the same with the competent entities in compliance with the legislation in force, and advise of any violation in this regard.
8. Prepare periodic reports on the Department’s work progress and submit them to the competent entities at the Ministry.

Article (11)

The Financial Comptrollers Department shall have the following competences:

1. Nominate financial comptrollers and assistant comptrollers internally and externally in accordance with the legislation in force.
2. Inspect and follow up on financial comptrollers to ensure good performance and the enforcement of financial legislation; ensure performance of the functions entrusted thereto including the keeping of accounting records in accordance with the Law of the Financial System of the State and the regulations issued in accordance therewith; and alert to any failure, neglect, or violation of the law in the performance of their duties.
3. Receive, examine, and assess the periodic monthly reports prepared by the financial comptrollers of the different public administration units, and refer the same along with its opinion to the competent entities at the Ministry.
4. Take part in the committees in charge of inspecting small items at the different local administration units in accordance with the provisions of the budget, accounts, and inventory regulation.
5. Take the necessary procedures with regard to the remarks of the Ministry’s Internal Review Office.
6. Prepare periodic reports on the Department’s work progress and submit them to the competent entities at the Ministry.

Article (12)

The Financial Institutions and Technical Cooperation Department shall have the following competences:

1. Propose and implement technical cooperation projects with international organisations and agencies in order to prepare and implement development plans and projects in coordination with concerned entities.
2. Propose the proper methods for benefiting from the technical aids and activities provided by international organisations with relation to the Ministry of Finance.
3. Study draft agreements set to be concluded in the fields of technical cooperation with regional and international organisations and countries, and follow up on their implementation.
4. Conduct studies and research on internal lending policies in light of the financial developments at the local and international levels in coordination with the concerned entities.
5. Examine and assess loan requests submitted to Libya by other countries in coordination with the competent entities in order to ensure they meet all the necessary payment guarantees; take part in drafting loan agreements in coordination with the concerned entities, and follow up on the repayment thereof.
6. Take the necessary procedures to collect loan instalments and interest on time in accordance with the relevant agreements, ensure their reconcilement, produce periodic reports thereon, and keep the official documents related to loan agreements and quittances.
7. Coordinate with the concerned entities to identify all the loans granted by public entities, follow up on any data and information related thereto and those pertaining to all the debts due to and by the State, and take the necessary reconcilement measures.
8. Conduct collection and payment procedures of outstanding debts, compare their related documents with concerned parties, reckon and list the same in the records in coordination with the competent entities.
9. Examine the periodic reports submitted by regional and international financial institutions and refer them to the concerned entities with its opinion.

10. Keep old debt records of foreign companies that conducted business in Libya in the past, and take the necessary actions to settle them.

11. Prepare periodic reports on the Department’s work progress and submit them to the competent entities at the Ministry.

Article (13)

The Administrative and Financial Affairs Department shall have the following competences:

1. Establish the procedures relating to the appointment, promotion, transfer, re-assignment, secondment, leave, and discipline of personnel in addition to other job affairs in accordance with the relevant laws and regulations in force.
2. Identify professional needs and requirements, and set up training and rehabilitation plans and programs for the Ministry’s executive unit staff in order to improve their performance, in coordination with the organisational divisions of such unit.
3. Conduct the public services stipulated by Law No. (19) of 1428 FBP on regulating the services of administrative units to their employees, and the executive regulation thereof.
4. Preserve the Ministry’s executive unit facilities, ensure their cleanness, and conduct periodic maintenance thereof.
5. Carry out the activities related to archives and their organisation to ensure the entry, circulation, keeping, and easy access to thematic files, documents, and correspondence; oversee printing, copying, and photocopying processes, and automate these processes.
6. Prepare the Ministry’s draft budget and conduct all the financial procedures for its execution in accordance with the legislation in force; fulfil the Ministry’s requirements, and supply warehouses with required items within the limits of their allocated provisions.
7. Distribute relevant legislation and publications to the Ministry’s organisational divisions.
8. Assume the functions of the secretariat of the personnel committee and the disciplinary board of the executive unit; prepare their meeting minutes; classify, arrange, and keep the same; take the necessary measures for their implementation; and notify the same to the competent entities.
9. Collect the revenues of the Ministry’s executive unit, prepare the salaries and benefits of its employees, conduct customs clearance for machines, tools, and equipment imported by the unit to perform the duties entrusted thereto.

10. Handle the treasury duties of the Ministry’s executive unit.

11. Prepare institutional performance development plans for the Ministry.

12. Oversee the guard, security, and safety duties of the Ministry’s premises.

12. Prepare periodic reports on the Department’s work progress in addition to the Ministry’s annual activity report.

Article (14)

The Legal Affairs Office shall have the following competences:

1. Follow up on lawsuits brought by or against the Ministry, coordinate with the State Lawsuits Authority in the preparation of the necessary defence in this respect, and take the necessary procedures concerning the judicial decisions executed by the Treasury in coordination with the Budget Department.
2. Provide legal opinion and consultancy in the issues referred thereto; prepare and review draft decisions that fall under the jurisdiction of the Ministry of Finance, the Minister thereof, or the deputy minister.
3. Prepare legal memoranda regarding the issues presented by the Minister of Finance to the Cabinet.
4. Participate in drafting agreements to which the Ministry of Finance is party, in coordination with the concerned departments.
5. Contribute to the drawing up and review of contracts that pertain to the Ministry of Finance.
6. Look into complaints and conduct investigations in the matters and issues entrusted thereto.
7. Take part in the formulation of financial, tax, and customs legislation as well as the legislation relating to human, economic, and social development, and propose the necessary amendments thereto when required, in coordination with the organisational divisions and the concerned entities.
8. Receive, classify, and keep records of the Official Gazette and other corpora juris, and regulate the circulation thereof among the sections of the executive unit.
9. Stamp, register, and number resolutions, and establish the procedures for their distribution and classification.

10. Prepare periodic reports on the Office’s work progress and submit them to the competent entities at the Ministry.

Article (15)

The Internal Review Office shall have the following competences:

1. Review the transactions and procedures of the Ministry’s executive unit to ensure the accuracy thereof and the proper implementation of the relevant legislation in force.
2. Verify the assets and liabilities of the executive unit and register the same in the books in compliance with the Law of the Financial System of the State and the budget, accounts, and inventory regulation.
3. Follow up on the financial and administrative affairs of the Ministry and prepare the necessary reports thereon.
4. Inspect public and specialised warehouses, the accounting records of warehouses, the procedures used in the receipt, preservation and storage of items, and ensure the implementation of the budget, accounts, and inventory regulation.
5. Examine the observations and inquiries sent by supervisory entities and produce the responses thereto in coordination with the concerned departments and offices.
6. Prepare periodic reports on the Office’s work progress and submit them to the competent entities at the Ministry.

Article (16)

The Office of the Martyrs of Duty shall have the following competences:

1. Receive, examine, and sort out the personal files and final payment certificates referred by the executive unit sections of the State and the other entities who are proved to fall under the qualification of “martyr of duty” in accordance with the provisions of Law No. (12) of 1991 and the relevant legislation.
2. Prepare a special register for each ministry or entity to record the names of the martyrs of duty whose files are referred therefrom, and document the information on a computer system.
3. Follow up on the salaries and other financial affairs, such as the annual bonus, promotion, variations in the family allowance and any other allowances stipulated by the legislation in force, pertaining to the martyrs of duty whose files have been received.
4. Respond to the inquiries of the families of the martyrs of duty and cooperate with them to solve any problem related to the job conditions of the martyrs based on their personal files, in accordance with Law No. (12) of 1991.
5. Produce the financial claim pertaining to new files upon their delivery to the Office, and take the necessary procedures to acquire the financial allocations and disburse the salaries due to the martyrs’ families.

Article (17)

The Office of the Ministry’s Affairs shall have the following competences:

1. Receive incoming reports and correspondences that are addressed to the Minister, collect and present the necessary data thereon, and carry out the instructions issued in their regard.
2. Prepare the memoranda and correspondence sent in the name of the Minister of Finance and the deputy minister, coordinating for this purpose with the various administration units of the Ministry whenever the situation so requires.
3. Prepare the agenda of meetings that are convened by the Minister in compliance with the directives issued in this regard; make the arrangements for such meetings; distribute their agenda, produce their minutes and notify them to the concerned entities; follow up on the execution of any decisions, and stamp, register, and distribute the same or any other executive procedures emerging from such meetings.
4. Organise the meetings and communications conducted by the Minister, provide the information and date requested by the Minister, and keep secret documents in accordance with the rules prescribed by the Minister.
5. Take part in the internal and external meetings that are attended by the Minister, produce the necessary reports thereon, and follow up thereon with the competent entities.
6. Stay informed of the issues of interest to the Ministry of Finance that are discussed by the media, present them to the Minister, follow up on them, and present proposals thereon.
7. Classify and keep the documents, reports, and all other papers related to the work of the Office of the Ministry’s Affairs.
8. Coordinate with all the services, departments, and offices as well as the entities that fall under the supervision of the Ministry of Finance in terms of providing any data or information requested by the Minister.
9. Prepare periodic reports on the Office’s work progress and submit them to the competent entities at the Ministry.

Article (18)

The Financial Services Control Departments at the local administration units shall have the following competences:

1. Oversee the implementation of the State budget at the local administration unit.
2. Oversee Treasury affairs at the local administration unit.
3. Oversee the circulation of public funds and preserve the same at the level of the local administration unit.
4. Oversee the opening of bank accounts for public entities at the local administration unit, and follow up on their withdrawals and deposits.
5. Oversee the keeping and organisation of entries in the prescribed public registers within the set periods.
6. Oversee the keeping, control, and use of valuable documents, and send the same immediately upon receipt to the competent entity at the Ministry of Finance.
7. Oversee the implementation of the provisions of the financial legislation and regulations.
8. Oversee financial comptrollers and follow up thereon at the level of local administration units.

Article (19)

The Ministry of Finance may form standing or provisional committees to examine the matters that fall under its jurisdiction. It may also resort to any experts or specialists it deems necessary in accordance with the legislation in force.

Article (20)

The internal organisation of the Ministry shall be determined by a decision issued by the Minister of Finance without violating the provisions of this decree.

Article (21)

This decree shall enter into force from its date of issuance. Any contrary provision shall be repealed. This decree shall be implemented by the concerned entities and it shall be published in the Official Gazette.

The Cabinet – Libya

Issued on 29 Rabi’ al-Awwal 1433 AH

Corresponding to 21/02/2012 AD