Organization of the State Audit Bureau

The Bureau is composed of judges, controllers and accounts auditors, and has administrative officers attached to it, as well as an independent public prosecution.

Articles 4 to 17 were repealed in their entirety by Article 2 of Legislative Decree No. 5 of 23 March 1985, except for provisions relating to accounts auditors, and the provisions of Articles 4 to 13 of Legislative Decree No. 118 of 12 June 1959 were restored.

Administrative control is of two types: prior and subsequent.

The purpose of prior administrative control is to verify the validity of a transaction and its conformity with the budget and the provisions of applicable laws and regulations.

The Bureau's prior control is a fundamental element of transactions; any transaction not subjected to such control is deemed null and void, and the competent civil servant is prohibited from placing it in execution under pain of the penalty provided for in Article 60 of this Legislative Decree.

The following transactions relating to revenues are subject to prior administrative control:

1. 1)Revenue concession transactions when the value exceeds 5,000,000 Lebanese liras.
2. 2)Real estate sale transactions when the value exceeds 5,000,000 Lebanese liras.

The following transactions relating to expenditures are subject to prior administrative control: - Supplies and works contracts whose value exceeds seventy-five million Lebanese liras. - Services contracts whose value exceeds twenty-five million Lebanese liras. - Amicable agreements including lease contracts whose value exceeds fifty million Lebanese liras. - Real estate purchase transactions whose value exceeds one hundred million Lebanese liras. - Grants, subsidies and contributions transactions when the value of the grant, subsidy or contribution exceeds fifteen million Lebanese liras.

Amicable settlements of lawsuits or disputes are subject to prior administrative control when the amount in dispute exceeds 15,000,000 L.L.

A transaction is filed with the State Audit Bureau together with its supporting documents, and a copy of the filing letter is submitted to the Prosecutor General by:

1. 1)The authority competent to decide on the transaction, in respect of revenues.
2. 2)The expenditure commitment controller in public administrations and the officer charged with monitoring expenditure commitments in public institutions and municipalities.
3. 3)The President shall refer the transaction to the competent judge in accordance with the work distribution decision, and may handle it personally when necessary or in cases specified in the work distribution decision.

Prior control is exercised by the competent judge, who either studies the transaction personally or refers it to one of the controllers working with him for study and the preparation of a report thereon. If the competent judge approves the transaction, it is returned bearing his countersignature; if he does not approve it, it is referred to a body composed of a president and two counsellors, one of whom is the competent judge. For transactions in which the value of the revenue or expenditure exceeds 500,000 Lebanese liras, prior control shall be exercised by a body composed of a president and two counsellors, one of whom is the competent judge. The decision declaring the Bureau's lack of jurisdiction to exercise prior control shall be issued by the aforementioned body.

The Bureau shall take its decision on a transaction within ten days of the date of filing. If documents, clarifications or, when necessary, the hearing of the competent civil servant are required, the Bureau is granted an additional five-day period from the date of receipt of the requested documents or clarifications. Official holidays are not counted in the aforementioned periods. If the Bureau fails to take its decision within these periods, the administration has the right to retrieve the transaction and the Bureau's opinion shall be disregarded.

Where the Bureau's decision grants approval: - In respect of revenues, if it contradicts the opinion of the authority competent to decide on the transaction, that authority must comply with the Bureau's decision unless the competent minister agrees to refer the transaction to the Council of Ministers. - In respect of expenditures, if it contradicts the opinion of the expenditure commitment controller, that controller must comply with the Bureau's decision unless the Minister of Finance agrees to refer the transaction to the Council of Ministers. Where the Bureau's opinion is contrary to the proposed transaction, the competent administration may refer the dispute to the Council of Ministers.

The Council of Ministers rules on transactions referred to it by reasoned decisions after hearing the President of the Bureau. When it overrides the opinion of the Minister of Finance or the Bureau's decision, its decision takes the place of the Bureau's countersignature or that of the expenditure commitment controller. In both cases, the Council of Ministers' decision is noted in the transaction.

The Council of Ministers' decision is notified to the Bureau, which retains the right to include the matter in its annual report or in a special report addressed to the Chamber of Deputies.

The Bureau's decisions may be reviewed within the scope of its prior administrative control at the request of the competent administration, the President of the Bureau, or the public prosecution at the Bureau. The body that issued the decision shall hear the review.

The Bureau's prior approval is deemed lapsed if it has not been acted upon within the financial year in which it was granted.

The purpose of subsequent administrative control is to assess financial transactions and their overall results from the time of their conclusion through to the completion of their execution and their recording in the accounts.

The results of subsequent administrative control are presented in an annual report and in special reports.

The Bureau draws up at the end of each year a report on the results of its control and the reforms it proposes to introduce to the various laws and regulations whose application produces financial consequences. The Bureau approves this report in plenary session after hearing the Prosecutor General.

The annual report is communicated to the relevant administrations and bodies, which must submit their replies within one month. The Bureau has the right to comment on the replies.

The President of the Bureau submits the annual report to the President of the Republic together with the replies of the relevant administrations and bodies and the Bureau's comments thereon. Copies of the report accompanied by the replies and comments are submitted to the Chamber of Deputies for distribution to its members; copies are also submitted to the Civil Service Council and the Central Inspection Administration.

The annual report together with the replies of the relevant administrations and bodies and the comments thereon is published in the Official Gazette and printed as a separate volume for distribution to the administrations and bodies subject to the Bureau's control.

The Parliamentary Finance and Budget Committee and other relevant committees shall hear the President of the Bureau or his delegate, and when necessary representatives of the public administrations and relevant bodies, when studying the report and providing the necessary explanations.

The Bureau may, whenever it deems necessary, submit to the President of the Republic, the President of the Chamber of Deputies, the Prime Minister, or the relevant public administrations and bodies special reports on specific subjects together with appropriate recommendations.

The Bureau issues each year a compliance statement for each of the accounts submitted to it supported by the supporting documents specified in laws and regulations.

Compliance statements are notified: - To the President of the Chamber of Deputies for distribution to its members, and to the Minister of Finance, when they relate to accounts of the general budget and supplementary budgets and other budgets subject to approval by the legislative authority; the provisions of Article 51 of this Legislative Decree apply to them. - To the Minister of Finance, the supervisory minister, the relevant bodies and the authority competent to approve the budget settlement at the relevant institution, when they relate to accounts of budgets subject to approval by an authority other than the legislative authority.

The President of the Bureau organises the internal administration and the manner in which all the functions entrusted to the Bureau are exercised, and corresponds directly with all public administrations. The chambers are formed and the Bureau's work is distributed by decision of the President of the Bureau after approval by the Bureau Council; such distribution may be modified, when necessary, in the same manner. The President of the Bureau holds a standing delegation to exercise, on behalf of the State Audit Bureau, the financial and administrative powers that laws and regulations vest in the minister, with the exception of constitutional powers; he is also responsible for committing the Bureau's expenditures, monitoring their commitment and settling them.

The President of the Bureau draws up the Bureau's draft budget and transmits it to the Minister of Finance. Should it be amended, the Council of Ministers shall rule on it after hearing the President of the Bureau.

In the event of the President of the Bureau's absence, or a vacancy in the presidency, or his inability to perform his duties, he shall be replaced by the Chamber President of the highest grade, and in case of equal grade, the oldest in age, and in case of equal age, the most senior in the judiciary, and in case of equal seniority, the most senior in public service.

The judge studies the transactions referred to him and performs the tasks of prior and subsequent control and opinion-giving together with the body to which he belongs.

The controller assists the judge in his mission. In principle, the accounts of a single accountant for a single financial year are audited by one controller; it is also mandatory that the auditing of the accounts of a single accountant not be entrusted to a single controller for more than two consecutive years. However, departure from the preceding paragraph is permissible when necessary, provided it is done by decision of the Bureau President taken after approval by the Bureau Council.

Administrative officers perform the tasks assigned to them in accordance with internal regulations drawn up by the President of the Bureau after approval by the Bureau Council.

The acts of controllers, clerks of court and process servers are deemed valid within the limits of their functions until forgery thereof is established.

The Prosecutor General represents the Government before the Bureau and, in the exercise of judicial control, has the right to attend hearings and address them, to request documents in order to submit his written submissions, and to correspond directly with public administrations on all matters related to the exercise of his functions. The deputies of the Prosecutor General perform the functions of the Prosecutor General under his supervision. In the absence of the Prosecutor General and his deputies, the functions of the public prosecution are assumed by the most senior-ranking counsellor.

The competent authorities must notify the Prosecutor General at the Bureau of the violations referred to in this Legislative Decree, and the Central Inspection Administration must file with the Prosecutor General at the Bureau copies of the financial inspection reports. The Prosecutor General reviews these reports and transmits them with his observations and recommendations to the Central Inspection Administration for the necessary administrative or judicial measures to be taken against the responsible civil servants.

The Prosecutor General may request the Public Prosecution at the Court of Cassation to criminally prosecute any civil servant whom he considers to have committed or participated in any of the offences that may cause harm to the public administration or to public funds or to funds deposited in the Treasury. He is also required to request such prosecution if the Bureau so decides. Criminal prosecution shall proceed without authorisation from the administrative authority, and the competent administration and the Central Inspection Administration shall be duly informed of the matter.

The Bureau or its Prosecutor General may task the Central Inspection Administration with carrying out any inspection or investigation required by the public interest. The Central Inspection Administration must give priority to these tasks when so requested.

Measures taken by central inspection bodies against offending civil servants do not preclude their prosecution before the Bureau.

Judicial control is of two types: control over accounts and control over civil servants.

The purpose of control over accounts is to rule on the validity of the accounts of accountants and any person who intervenes in the collection of public funds and funds deposited in the Treasury or in their payment without having the legal capacity to do so. Subject to the final decisions issued by the State Audit Bureau in respect of the accounts of previous years, the Bureau exercises its control over accounts starting from the accounts of the year 1980.

Control over accounts covers the following transactions:

1. 1)With regard to revenues:
2. 2)The validity of the documents on the basis of which collection was made.
3. 3)The validity of collections and their conformity with tax laws.
4. 4)The remittance of collected amounts to the public treasuries.
5. 5)With regard to expenditures:
6. 6)The validity of the documents on the basis of which payment was made and the conformity of the transaction with applicable laws and regulations and with the budget and appropriations opened thereunder.
7. 7)The existence of the supporting documents for the expenditure as defined by law.
8. 8)With regard to Treasury receipts and payments:
9. 9)The validity of receipt and payment transactions and their conformity with orders issued by the competent authority.
10. 10)With regard to supplies:
11. 11)The validity of the receipt, custody and delivery of supplies and the validity of the preparation of inventory statements.
12. 12)With regard to accounts:
13. 13)The validity of the accounts and their conformity with laws and regulations.
14. 14)The conformity of entries with the submitted supporting documents.

The Bureau settles and audits the accounts of accountants and rules on them by provisional or final decisions. The provisional decision identifies the observations attributed to the account and what the accountant is required to provide in response. The final decision declares the accountant either discharged, in credit, or in debit. In the first and second cases, if the accountant has left his post, the Bureau orders the cancellation of any liens placed on his assets if any exist, and the return of any security furnished by him. In the third case, the Bureau orders the accountant to pay the remaining balance within a period it specifies; if the debit balance results from a force majeure event, the Bureau may discharge the accountant from it. If the accountant dies, the estate shall not be transferred to his heirs before the Bureau has issued a final decision on his account. The competent administration must file the account with its supporting documents with the Bureau within a maximum period of three months from the date of death, and the Bureau must issue its decision within three months from the date of filing of the account. In any event, if six months have elapsed from the date on which the Bureau received the deceased accountant's account without the Bureau having issued a decision, the decision shall be waived and the estate may then be transferred to the accountant's heirs if there is no other legal obstacle preventing this.

Control over civil servants covers the acts of every person who manages or uses public funds and funds deposited in the Treasury, and every person who carries out receipt and payment transactions on behalf of or for the benefit of the Treasury or maintains its accounts, as well as the acts of every person who intervenes in the management of the said funds and in the performance of the aforementioned transactions without having the legal capacity to do so, or who participates in the preparatory acts thereto, monitors them or endorses them. For the purposes of applying this control, any non-civil servant entrusted with performing the duties referred to in the first paragraph of this article — whether by appointment, election or contract — shall be treated as a civil servant, including members of decision-making bodies in connection with their performance of the said duties, and any non-civil servant who performed these duties or intervened or participated in them without legal authority.

A fine of between 150,000 and 1,500,000 Lebanese liras shall be imposed on every civil servant who commits or participates in committing any of the violations listed in this article, in addition to civil liability and criminal and disciplinary penalties that may be imposed by the competent authorities:

1. 1)Committing expenditure contrary to the provisions of law or regulations.
2. 2)Committing expenditure without obtaining the countersignature of the expenditure commitment controller.
3. 3)Neglecting to submit a transaction to the Bureau's prior control, or placing in execution a transaction that was not submitted to such control, or placing in execution a transaction without complying with the conditions set out in the Bureau's decision thereon.
4. 4)Failure to comply with the Bureau's or the expenditure commitment controller's refusal to countersign a transaction.
5. 5)Misrecording an expenditure to conceal an excess of appropriations.
6. 6)Executing an order contrary to law received from other than the direct hierarchical superior.
7. 7)Causing or attempting to cause persons contracting with the administration to derive unlawful profit.
8. 8)Committing an error, negligence or omission likely to cause material harm to public funds or to funds deposited in the Treasury.
9. 9)Failing to file with the Bureau or its public prosecution the accounts, documents and clarifications required within the time limits set by laws and regulations.
10. 10)Violating the provisions relating to the management or use of public funds or funds deposited in the Treasury.

If it is established that the violation referred to in Article 60 of this Legislative Decree caused harm or loss to public funds or to funds deposited in the Treasury, the Bureau has the right to penalise the offending civil servant, in addition to the fine provided for in Article 60, with an additional fine calculated in proportion to the gravity of the violation committed and to the amount of the net salary received by the offending civil servant where he is in receipt of a salary, or to the amount of his allowances or their equivalent in other cases. The additional fine may not be less than the civil servant's monthly salary or monthly allowances or their equivalent at the date of the commission of the violation, nor may it exceed the total of his annual salary or annual allowances or their equivalent at that date; in cases where he performs his duties without remuneration, the fine shall be between one thousand and ten thousand Lebanese liras. The civil servant who is prosecuted before the Bureau is permitted to be assisted by a lawyer of his choice.

1. 1)The Bureau assesses the reasons for the violation and the extent of responsibility therefor, and sentences the responsible civil servant to a fine within the limits set out in Articles 60 and 61 of this Legislative Decree.
2. 2)The civil servant is exempted from the penalty if the act leading to the violation is revoked before it is placed in execution, or if the investigation establishes that the violation was committed in execution of a written order received from his direct superior, provided that he had drawn his superior's attention in writing to the violation that might result from the execution of the order; in such case, the superior assumes the civil servant's liability and is penalised within the limits set out in Articles 60 and 61 of this Legislative Decree.
3. 3)The civil servant directly subordinate to the minister is not exempted from the penalty unless he has notified the Bureau directly and its Prosecutor General within one week at most of the written request he submitted to the minister prior to execution of the order, in which he drew the minister's attention to the violation that might result from that order.
4. 4)The Bureau may decide to grant an exemption from the penalty if it is established that it was impossible for the civil servant to be aware of the violation at the time of its commission, or that the civil servant committed the violation in the interest of proper conduct of public affairs or to avoid a greater harm that might befall them.
5. 5)If the Bureau imposes a fine, it may decide to suspend its execution if it is satisfied as to the good faith of the person convicted, provided that such person does not benefit from suspension of execution more than once during the single financial year in which the violation was committed.

Fines imposed by the Bureau may not be cumulated except within the maximum limit provided for in Articles 60 and 61 of this Legislative Decree. The fines provided for in the said articles are not subject to administrative modification.

The Bureau must inform the Chamber of Deputies of violations committed by ministers.

1. 1)The termination of a civil servant's service does not preclude his prosecution before the State Audit Bureau.
2. 2)Prosecution for a violation lapses and is extinguished upon the death of the civil servant responsible for it or upon prescription.
3. 3)Prescription of a violation occurs upon the expiry of five years from the date of its commission if it was apparent, or from the date of its discovery if it was concealed.
4. 4)The prescription period is calculated from day to day and is interrupted only by one of the following causes:
5. 5)A request to the State Audit Bureau to examine the violation in accordance with the provisions of this Legislative Decree.
6. 6)The commencement of investigation proceedings into the violation in accordance with the provisions of this Legislative Decree.
7. 7)Preparatory decisions taken by the State Audit Bureau in respect of the violation.
8. 8)A request to quash the State Audit Bureau's decision in respect of the violation.

The Bureau exercises its judicial powers as a court whose bench is composed of a president and two counsellors. The provisions of the Code of Civil Procedure apply to challenges and recusals.

If the bench cannot be constituted, it shall be supplemented by judges from the Council of State, seconded by decision of the Prime Minister upon the request of the President of the Bureau and with the approval of the President of the Council of State.

1 - The Bureau examines the violation of its own motion or upon request by the Prosecutor General. The Prosecutor General, for this purpose, may conduct the investigation into the case or expand the investigation already under way, may hear the civil servant and witnesses, may request the competent administration or body to file with him the documents, clarifications and information he requires, and may task the controller assisting him with any on-site audit relating to the case, provided that the tasking is notified to the civil servant's direct superior before the mission begins. The provisions of Article 80 of this Legislative Decree apply to civil servants and witnesses, and the provisions of paragraph 2 of this article apply to requests for documents, clarifications and information. In the event of an ex officio referral, the procedures set out above shall be followed, with the competent judge taking over the functions of the Prosecutor General described therein. 2 - The Chamber President refers the transaction to the competent counsellor, who either studies it personally or refers it to a controller for assistance in its study. The counsellor may request the competent administration to provide the written clarifications and information he requires, may interrogate the civil servant attributed with the violation and hear witnesses, may propose to the bench the appointment of experts, and may task the controller in writing with any investigation or on-site audit relating to the transaction referred to him, provided that the written tasking is notified to the head of the administration before the mission begins. The competent administration must reply to the request within the period specified therein, which may not be less than ten days. The period may be extended when necessary, either ex officio or upon request by the competent administration. The Bureau may inspect any file or document, even classified ones, if they are relevant to the case under examination.

The counsellor draws up a report on the outcome of the investigation containing a summary of the case together with his opinion thereon.

The counsellors' reports requesting review, a ruling on jurisdiction, a finding of debit or credit balance, or the imposition of a fine are referred to the Prosecutor General together with the supporting documents. Other reports are referred to him if he so requests or if the President or the competent body so decides. The Prosecutor General returns the reports accompanied by his written submissions within a maximum period of ten days.

The provisional decision is notified to the accountant or civil servant by process servers in accordance with the provisions of the Code of Civil Procedure, or by registered post with acknowledgement of receipt, or through administrative channels, and a copy is notified to his direct superior. The party concerned must submit his defence within the period specified in the decision, which may not be less than thirty days; if the period expires without a reply, the Bureau shall examine the case in its current state. The party concerned has the right to inspect the file and to be assisted by a lawyer.

Deliberation takes place in chambers on the basis of the exhibited documents. Decisions are issued in chambers by majority vote.

The final decision is notified to the party concerned in accordance with the procedures set out in Article 71 of this Legislative Decree. A copy is notified to the Prosecutor General and to the competent ministry or administration, and a copy is sent to the Ministry of Finance for execution in accordance with the direct tax collection law.

A compulsory mortgage is placed on the real estate of the person convicted. Statutory interest runs on the amount of the debit balance from the date specified in the decision.

The Bureau may in all cases recommend to the competent minister that the civil servant be prosecuted administratively or criminally, and must notify a copy of its recommendation to the Central Inspection Administration.

The Bureau's final judicial decisions may be challenged either by way of review or by way of cassation.

A decision may be reviewed before the Bureau:

1. 1)If the examination of another transaction reveals the existence of an error, omission, forgery or duplicate entry.
2. 2)If new documents or matters emerge that would alter the outcome of the decision.
3. 3)Review shall be conducted upon request by the Prosecutor General or the Minister of Finance in the interest of the Treasury, or by the accountant, the competent civil servant, the administration or the relevant body.
4. 4)A request for review shall be submitted by the accountant or civil servant within two months from the date on which the ground justifying it became known or apparent, and the admission of the request for review is conditional upon the provision of a security deposit of ten thousand Lebanese liras payable by receipt at the Lebanese Treasury; this security is forfeited to the Treasury if the request for review is rejected on procedural or substantive grounds, and is returned to the accountant or civil servant in all other cases.
5. 5)A request for review does not suspend the execution of the challenged decision; however, the Bureau may exceptionally decide to suspend execution of the challenged decision upon request by the accountant or competent civil servant if it is established that execution would cause them serious harm and that the request for review is based on a serious ground.
6. 6)The body that issued the challenged decision shall hear the request for review.

A decision may be challenged by way of cassation before the Council of State on grounds of lack of jurisdiction, violation of procedural rules, or violation of laws and regulations, within two months from the date of notification of the challenged decision. A cassation petition may be filed by the Prosecutor General at the State Audit Bureau, the Minister of Finance in the interest of the Treasury, the competent civil servant, and the relevant administration or body.

If the decision is quashed, the Bureau must comply with the Council of State's decision.

The Bureau is composed of judges, controllers and accounts auditors, and has administrative officers attached to it, as well as an independent public prosecution.

Articles 4 to 17 were repealed in their entirety by Article 2 of Legislative Decree No. 5 of 23 March 1985, except for provisions relating to accounts auditors, and the provisions of Articles 4 to 13 of Legislative Decree No. 118 of 12 June 1959 were restored.

Administrative control is of two types: prior and subsequent.

The purpose of prior administrative control is to verify the validity of a transaction and its conformity with the budget and the provisions of applicable laws and regulations.

The Bureau's prior control is a fundamental element of transactions; any transaction not subjected to such control is deemed null and void, and the competent civil servant is prohibited from placing it in execution under pain of the penalty provided for in Article 60 of this Legislative Decree.

The following transactions relating to revenues are subject to prior administrative control:

1. 1)Revenue concession transactions when the value exceeds 5,000,000 Lebanese liras.
2. 2)Real estate sale transactions when the value exceeds 5,000,000 Lebanese liras.

The following transactions relating to expenditures are subject to prior administrative control: - Supplies and works contracts whose value exceeds seventy-five million Lebanese liras. - Services contracts whose value exceeds twenty-five million Lebanese liras. - Amicable agreements including lease contracts whose value exceeds fifty million Lebanese liras. - Real estate purchase transactions whose value exceeds one hundred million Lebanese liras. - Grants, subsidies and contributions transactions when the value of the grant, subsidy or contribution exceeds fifteen million Lebanese liras.

Amicable settlements of lawsuits or disputes are subject to prior administrative control when the amount in dispute exceeds 15,000,000 L.L.

A transaction is filed with the State Audit Bureau together with its supporting documents, and a copy of the filing letter is submitted to the Prosecutor General by:

1. 1)The authority competent to decide on the transaction, in respect of revenues.
2. 2)The expenditure commitment controller in public administrations and the officer charged with monitoring expenditure commitments in public institutions and municipalities.
3. 3)The President shall refer the transaction to the competent judge in accordance with the work distribution decision, and may handle it personally when necessary or in cases specified in the work distribution decision.

Prior control is exercised by the competent judge, who either studies the transaction personally or refers it to one of the controllers working with him for study and the preparation of a report thereon. If the competent judge approves the transaction, it is returned bearing his countersignature; if he does not approve it, it is referred to a body composed of a president and two counsellors, one of whom is the competent judge. For transactions in which the value of the revenue or expenditure exceeds 500,000 Lebanese liras, prior control shall be exercised by a body composed of a president and two counsellors, one of whom is the competent judge. The decision declaring the Bureau's lack of jurisdiction to exercise prior control shall be issued by the aforementioned body.

The Bureau shall take its decision on a transaction within ten days of the date of filing. If documents, clarifications or, when necessary, the hearing of the competent civil servant are required, the Bureau is granted an additional five-day period from the date of receipt of the requested documents or clarifications. Official holidays are not counted in the aforementioned periods. If the Bureau fails to take its decision within these periods, the administration has the right to retrieve the transaction and the Bureau's opinion shall be disregarded.

Where the Bureau's decision grants approval: - In respect of revenues, if it contradicts the opinion of the authority competent to decide on the transaction, that authority must comply with the Bureau's decision unless the competent minister agrees to refer the transaction to the Council of Ministers. - In respect of expenditures, if it contradicts the opinion of the expenditure commitment controller, that controller must comply with the Bureau's decision unless the Minister of Finance agrees to refer the transaction to the Council of Ministers. Where the Bureau's opinion is contrary to the proposed transaction, the competent administration may refer the dispute to the Council of Ministers.

The Council of Ministers rules on transactions referred to it by reasoned decisions after hearing the President of the Bureau. When it overrides the opinion of the Minister of Finance or the Bureau's decision, its decision takes the place of the Bureau's countersignature or that of the expenditure commitment controller. In both cases, the Council of Ministers' decision is noted in the transaction.

The Council of Ministers' decision is notified to the Bureau, which retains the right to include the matter in its annual report or in a special report addressed to the Chamber of Deputies.

The Bureau's decisions may be reviewed within the scope of its prior administrative control at the request of the competent administration, the President of the Bureau, or the public prosecution at the Bureau. The body that issued the decision shall hear the review.

The Bureau's prior approval is deemed lapsed if it has not been acted upon within the financial year in which it was granted.

The purpose of subsequent administrative control is to assess financial transactions and their overall results from the time of their conclusion through to the completion of their execution and their recording in the accounts.

The results of subsequent administrative control are presented in an annual report and in special reports.

The Bureau draws up at the end of each year a report on the results of its control and the reforms it proposes to introduce to the various laws and regulations whose application produces financial consequences. The Bureau approves this report in plenary session after hearing the Prosecutor General.

The annual report is communicated to the relevant administrations and bodies, which must submit their replies within one month. The Bureau has the right to comment on the replies.

The President of the Bureau submits the annual report to the President of the Republic together with the replies of the relevant administrations and bodies and the Bureau's comments thereon. Copies of the report accompanied by the replies and comments are submitted to the Chamber of Deputies for distribution to its members; copies are also submitted to the Civil Service Council and the Central Inspection Administration.

The annual report together with the replies of the relevant administrations and bodies and the comments thereon is published in the Official Gazette and printed as a separate volume for distribution to the administrations and bodies subject to the Bureau's control.

The Parliamentary Finance and Budget Committee and other relevant committees shall hear the President of the Bureau or his delegate, and when necessary representatives of the public administrations and relevant bodies, when studying the report and providing the necessary explanations.

The Bureau may, whenever it deems necessary, submit to the President of the Republic, the President of the Chamber of Deputies, the Prime Minister, or the relevant public administrations and bodies special reports on specific subjects together with appropriate recommendations.

The Bureau issues each year a compliance statement for each of the accounts submitted to it supported by the supporting documents specified in laws and regulations.

Compliance statements are notified: - To the President of the Chamber of Deputies for distribution to its members, and to the Minister of Finance, when they relate to accounts of the general budget and supplementary budgets and other budgets subject to approval by the legislative authority; the provisions of Article 51 of this Legislative Decree apply to them. - To the Minister of Finance, the supervisory minister, the relevant bodies and the authority competent to approve the budget settlement at the relevant institution, when they relate to accounts of budgets subject to approval by an authority other than the legislative authority.

The President of the Bureau organises the internal administration and the manner in which all the functions entrusted to the Bureau are exercised, and corresponds directly with all public administrations. The chambers are formed and the Bureau's work is distributed by decision of the President of the Bureau after approval by the Bureau Council; such distribution may be modified, when necessary, in the same manner. The President of the Bureau holds a standing delegation to exercise, on behalf of the State Audit Bureau, the financial and administrative powers that laws and regulations vest in the minister, with the exception of constitutional powers; he is also responsible for committing the Bureau's expenditures, monitoring their commitment and settling them.

The President of the Bureau draws up the Bureau's draft budget and transmits it to the Minister of Finance. Should it be amended, the Council of Ministers shall rule on it after hearing the President of the Bureau.

In the event of the President of the Bureau's absence, or a vacancy in the presidency, or his inability to perform his duties, he shall be replaced by the Chamber President of the highest grade, and in case of equal grade, the oldest in age, and in case of equal age, the most senior in the judiciary, and in case of equal seniority, the most senior in public service.

The judge studies the transactions referred to him and performs the tasks of prior and subsequent control and opinion-giving together with the body to which he belongs.

The controller assists the judge in his mission. In principle, the accounts of a single accountant for a single financial year are audited by one controller; it is also mandatory that the auditing of the accounts of a single accountant not be entrusted to a single controller for more than two consecutive years. However, departure from the preceding paragraph is permissible when necessary, provided it is done by decision of the Bureau President taken after approval by the Bureau Council.

Administrative officers perform the tasks assigned to them in accordance with internal regulations drawn up by the President of the Bureau after approval by the Bureau Council.

The acts of controllers, clerks of court and process servers are deemed valid within the limits of their functions until forgery thereof is established.

The Prosecutor General represents the Government before the Bureau and, in the exercise of judicial control, has the right to attend hearings and address them, to request documents in order to submit his written submissions, and to correspond directly with public administrations on all matters related to the exercise of his functions. The deputies of the Prosecutor General perform the functions of the Prosecutor General under his supervision. In the absence of the Prosecutor General and his deputies, the functions of the public prosecution are assumed by the most senior-ranking counsellor.

The competent authorities must notify the Prosecutor General at the Bureau of the violations referred to in this Legislative Decree, and the Central Inspection Administration must file with the Prosecutor General at the Bureau copies of the financial inspection reports. The Prosecutor General reviews these reports and transmits them with his observations and recommendations to the Central Inspection Administration for the necessary administrative or judicial measures to be taken against the responsible civil servants.

The Prosecutor General may request the Public Prosecution at the Court of Cassation to criminally prosecute any civil servant whom he considers to have committed or participated in any of the offences that may cause harm to the public administration or to public funds or to funds deposited in the Treasury. He is also required to request such prosecution if the Bureau so decides. Criminal prosecution shall proceed without authorisation from the administrative authority, and the competent administration and the Central Inspection Administration shall be duly informed of the matter.

The Bureau or its Prosecutor General may task the Central Inspection Administration with carrying out any inspection or investigation required by the public interest. The Central Inspection Administration must give priority to these tasks when so requested.

Measures taken by central inspection bodies against offending civil servants do not preclude their prosecution before the Bureau.

Judicial control is of two types: control over accounts and control over civil servants.

The purpose of control over accounts is to rule on the validity of the accounts of accountants and any person who intervenes in the collection of public funds and funds deposited in the Treasury or in their payment without having the legal capacity to do so. Subject to the final decisions issued by the State Audit Bureau in respect of the accounts of previous years, the Bureau exercises its control over accounts starting from the accounts of the year 1980.

Control over accounts covers the following transactions:

1. 1)With regard to revenues:
2. 2)The validity of the documents on the basis of which collection was made.
3. 3)The validity of collections and their conformity with tax laws.
4. 4)The remittance of collected amounts to the public treasuries.
5. 5)With regard to expenditures:
6. 6)The validity of the documents on the basis of which payment was made and the conformity of the transaction with applicable laws and regulations and with the budget and appropriations opened thereunder.
7. 7)The existence of the supporting documents for the expenditure as defined by law.
8. 8)With regard to Treasury receipts and payments:
9. 9)The validity of receipt and payment transactions and their conformity with orders issued by the competent authority.
10. 10)With regard to supplies:
11. 11)The validity of the receipt, custody and delivery of supplies and the validity of the preparation of inventory statements.
12. 12)With regard to accounts:
13. 13)The validity of the accounts and their conformity with laws and regulations.
14. 14)The conformity of entries with the submitted supporting documents.

The Bureau settles and audits the accounts of accountants and rules on them by provisional or final decisions. The provisional decision identifies the observations attributed to the account and what the accountant is required to provide in response. The final decision declares the accountant either discharged, in credit, or in debit. In the first and second cases, if the accountant has left his post, the Bureau orders the cancellation of any liens placed on his assets if any exist, and the return of any security furnished by him. In the third case, the Bureau orders the accountant to pay the remaining balance within a period it specifies; if the debit balance results from a force majeure event, the Bureau may discharge the accountant from it. If the accountant dies, the estate shall not be transferred to his heirs before the Bureau has issued a final decision on his account. The competent administration must file the account with its supporting documents with the Bureau within a maximum period of three months from the date of death, and the Bureau must issue its decision within three months from the date of filing of the account. In any event, if six months have elapsed from the date on which the Bureau received the deceased accountant's account without the Bureau having issued a decision, the decision shall be waived and the estate may then be transferred to the accountant's heirs if there is no other legal obstacle preventing this.

Control over civil servants covers the acts of every person who manages or uses public funds and funds deposited in the Treasury, and every person who carries out receipt and payment transactions on behalf of or for the benefit of the Treasury or maintains its accounts, as well as the acts of every person who intervenes in the management of the said funds and in the performance of the aforementioned transactions without having the legal capacity to do so, or who participates in the preparatory acts thereto, monitors them or endorses them. For the purposes of applying this control, any non-civil servant entrusted with performing the duties referred to in the first paragraph of this article — whether by appointment, election or contract — shall be treated as a civil servant, including members of decision-making bodies in connection with their performance of the said duties, and any non-civil servant who performed these duties or intervened or participated in them without legal authority.

A fine of between 150,000 and 1,500,000 Lebanese liras shall be imposed on every civil servant who commits or participates in committing any of the violations listed in this article, in addition to civil liability and criminal and disciplinary penalties that may be imposed by the competent authorities:

1. 1)Committing expenditure contrary to the provisions of law or regulations.
2. 2)Committing expenditure without obtaining the countersignature of the expenditure commitment controller.
3. 3)Neglecting to submit a transaction to the Bureau's prior control, or placing in execution a transaction that was not submitted to such control, or placing in execution a transaction without complying with the conditions set out in the Bureau's decision thereon.
4. 4)Failure to comply with the Bureau's or the expenditure commitment controller's refusal to countersign a transaction.
5. 5)Misrecording an expenditure to conceal an excess of appropriations.
6. 6)Executing an order contrary to law received from other than the direct hierarchical superior.
7. 7)Causing or attempting to cause persons contracting with the administration to derive unlawful profit.
8. 8)Committing an error, negligence or omission likely to cause material harm to public funds or to funds deposited in the Treasury.
9. 9)Failing to file with the Bureau or its public prosecution the accounts, documents and clarifications required within the time limits set by laws and regulations.
10. 10)Violating the provisions relating to the management or use of public funds or funds deposited in the Treasury.

If it is established that the violation referred to in Article 60 of this Legislative Decree caused harm or loss to public funds or to funds deposited in the Treasury, the Bureau has the right to penalise the offending civil servant, in addition to the fine provided for in Article 60, with an additional fine calculated in proportion to the gravity of the violation committed and to the amount of the net salary received by the offending civil servant where he is in receipt of a salary, or to the amount of his allowances or their equivalent in other cases. The additional fine may not be less than the civil servant's monthly salary or monthly allowances or their equivalent at the date of the commission of the violation, nor may it exceed the total of his annual salary or annual allowances or their equivalent at that date; in cases where he performs his duties without remuneration, the fine shall be between one thousand and ten thousand Lebanese liras. The civil servant who is prosecuted before the Bureau is permitted to be assisted by a lawyer of his choice.

1. 1)The Bureau assesses the reasons for the violation and the extent of responsibility therefor, and sentences the responsible civil servant to a fine within the limits set out in Articles 60 and 61 of this Legislative Decree.
2. 2)The civil servant is exempted from the penalty if the act leading to the violation is revoked before it is placed in execution, or if the investigation establishes that the violation was committed in execution of a written order received from his direct superior, provided that he had drawn his superior's attention in writing to the violation that might result from the execution of the order; in such case, the superior assumes the civil servant's liability and is penalised within the limits set out in Articles 60 and 61 of this Legislative Decree.
3. 3)The civil servant directly subordinate to the minister is not exempted from the penalty unless he has notified the Bureau directly and its Prosecutor General within one week at most of the written request he submitted to the minister prior to execution of the order, in which he drew the minister's attention to the violation that might result from that order.
4. 4)The Bureau may decide to grant an exemption from the penalty if it is established that it was impossible for the civil servant to be aware of the violation at the time of its commission, or that the civil servant committed the violation in the interest of proper conduct of public affairs or to avoid a greater harm that might befall them.
5. 5)If the Bureau imposes a fine, it may decide to suspend its execution if it is satisfied as to the good faith of the person convicted, provided that such person does not benefit from suspension of execution more than once during the single financial year in which the violation was committed.

Fines imposed by the Bureau may not be cumulated except within the maximum limit provided for in Articles 60 and 61 of this Legislative Decree. The fines provided for in the said articles are not subject to administrative modification.

The Bureau must inform the Chamber of Deputies of violations committed by ministers.

1. 1)The termination of a civil servant's service does not preclude his prosecution before the State Audit Bureau.
2. 2)Prosecution for a violation lapses and is extinguished upon the death of the civil servant responsible for it or upon prescription.
3. 3)Prescription of a violation occurs upon the expiry of five years from the date of its commission if it was apparent, or from the date of its discovery if it was concealed.
4. 4)The prescription period is calculated from day to day and is interrupted only by one of the following causes:
5. 5)A request to the State Audit Bureau to examine the violation in accordance with the provisions of this Legislative Decree.
6. 6)The commencement of investigation proceedings into the violation in accordance with the provisions of this Legislative Decree.
7. 7)Preparatory decisions taken by the State Audit Bureau in respect of the violation.
8. 8)A request to quash the State Audit Bureau's decision in respect of the violation.

The Bureau exercises its judicial powers as a court whose bench is composed of a president and two counsellors. The provisions of the Code of Civil Procedure apply to challenges and recusals.

If the bench cannot be constituted, it shall be supplemented by judges from the Council of State, seconded by decision of the Prime Minister upon the request of the President of the Bureau and with the approval of the President of the Council of State.

1 - The Bureau examines the violation of its own motion or upon request by the Prosecutor General. The Prosecutor General, for this purpose, may conduct the investigation into the case or expand the investigation already under way, may hear the civil servant and witnesses, may request the competent administration or body to file with him the documents, clarifications and information he requires, and may task the controller assisting him with any on-site audit relating to the case, provided that the tasking is notified to the civil servant's direct superior before the mission begins. The provisions of Article 80 of this Legislative Decree apply to civil servants and witnesses, and the provisions of paragraph 2 of this article apply to requests for documents, clarifications and information. In the event of an ex officio referral, the procedures set out above shall be followed, with the competent judge taking over the functions of the Prosecutor General described therein. 2 - The Chamber President refers the transaction to the competent counsellor, who either studies it personally or refers it to a controller for assistance in its study. The counsellor may request the competent administration to provide the written clarifications and information he requires, may interrogate the civil servant attributed with the violation and hear witnesses, may propose to the bench the appointment of experts, and may task the controller in writing with any investigation or on-site audit relating to the transaction referred to him, provided that the written tasking is notified to the head of the administration before the mission begins. The competent administration must reply to the request within the period specified therein, which may not be less than ten days. The period may be extended when necessary, either ex officio or upon request by the competent administration. The Bureau may inspect any file or document, even classified ones, if they are relevant to the case under examination.

The counsellor draws up a report on the outcome of the investigation containing a summary of the case together with his opinion thereon.

The counsellors' reports requesting review, a ruling on jurisdiction, a finding of debit or credit balance, or the imposition of a fine are referred to the Prosecutor General together with the supporting documents. Other reports are referred to him if he so requests or if the President or the competent body so decides. The Prosecutor General returns the reports accompanied by his written submissions within a maximum period of ten days.

The provisional decision is notified to the accountant or civil servant by process servers in accordance with the provisions of the Code of Civil Procedure, or by registered post with acknowledgement of receipt, or through administrative channels, and a copy is notified to his direct superior. The party concerned must submit his defence within the period specified in the decision, which may not be less than thirty days; if the period expires without a reply, the Bureau shall examine the case in its current state. The party concerned has the right to inspect the file and to be assisted by a lawyer.

Deliberation takes place in chambers on the basis of the exhibited documents. Decisions are issued in chambers by majority vote.

The final decision is notified to the party concerned in accordance with the procedures set out in Article 71 of this Legislative Decree. A copy is notified to the Prosecutor General and to the competent ministry or administration, and a copy is sent to the Ministry of Finance for execution in accordance with the direct tax collection law.

A compulsory mortgage is placed on the real estate of the person convicted. Statutory interest runs on the amount of the debit balance from the date specified in the decision.

The Bureau may in all cases recommend to the competent minister that the civil servant be prosecuted administratively or criminally, and must notify a copy of its recommendation to the Central Inspection Administration.

The Bureau's final judicial decisions may be challenged either by way of review or by way of cassation.

A decision may be reviewed before the Bureau:

1. 1)If the examination of another transaction reveals the existence of an error, omission, forgery or duplicate entry.
2. 2)If new documents or matters emerge that would alter the outcome of the decision.
3. 3)Review shall be conducted upon request by the Prosecutor General or the Minister of Finance in the interest of the Treasury, or by the accountant, the competent civil servant, the administration or the relevant body.
4. 4)A request for review shall be submitted by the accountant or civil servant within two months from the date on which the ground justifying it became known or apparent, and the admission of the request for review is conditional upon the provision of a security deposit of ten thousand Lebanese liras payable by receipt at the Lebanese Treasury; this security is forfeited to the Treasury if the request for review is rejected on procedural or substantive grounds, and is returned to the accountant or civil servant in all other cases.
5. 5)A request for review does not suspend the execution of the challenged decision; however, the Bureau may exceptionally decide to suspend execution of the challenged decision upon request by the accountant or competent civil servant if it is established that execution would cause them serious harm and that the request for review is based on a serious ground.
6. 6)The body that issued the challenged decision shall hear the request for review.

A decision may be challenged by way of cassation before the Council of State on grounds of lack of jurisdiction, violation of procedural rules, or violation of laws and regulations, within two months from the date of notification of the challenged decision. A cassation petition may be filed by the Prosecutor General at the State Audit Bureau, the Minister of Finance in the interest of the Treasury, the competent civil servant, and the relevant administration or body.

If the decision is quashed, the Bureau must comply with the Council of State's decision.

1 - Civil servants, witnesses and experts are summoned to appear before the Bureau in both prior and subsequent control proceedings by the Chamber President. A person summoned to appear before the Bureau must comply with the request or face a fine of 20,000 Lebanese liras, doubled each time the request is not complied with, unless it is established that the non-attendance was for a legitimate reason. The Bureau examines the case in accordance with the provisions of Article 68 of this Legislative Decree. 2 - Experts at the State Audit Bureau are appointed from the list maintained by the courts. The competent body at the Bureau, after approval by the Bureau President, determines the expert's fee within the limits of the appropriations allocated for this purpose in the budget or from the security deposit that the party concerned may provide for this purpose. The provisions of Legislative Decree No. 65 of 9 September 1983 apply to the determination of fees. The procedures for the delivery of the security deposit referred to in this paragraph and the payment of the expert's fee therefrom shall be regulated by decision of the President of the State Audit Bureau after approval by the Bureau Council.