Government rejects proposal to audit sports and labour unions

TDT | Manama

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The government has rejected a legislative proposal that aimed to place sports and labour unions under the supervision of the Financial and Administrative Audit Bureau.

The government argues that the funds of these organisations are private, not public. In a memorandum to the Council of Representatives, the government stated that the Bahrain Olympic Committee is an independent body with legal personality and financial, administrative, and technical autonomy.

It operates under the provisions of the Olympic Charter and its president issues a unified statute covering the formation, administration, dissolution, meetings, and international participation of sports federations, along with their administrative and financial matters.

The government emphasised that the federations operate in accordance with laws and regulations issued by the international federation for each sport.

It also highlighted that the Olympic Committee receives financial support from the Supreme Council for Youth and Sports, further solidifying the private nature of their funds.

Purpose

Regarding labour unions, the government explained that their purpose is to protect the interests and rights of workers.

They are granted independent legal personality upon registration with the Ministry of Labour and are required to include provisions in their statutes regarding the preservation of their funds, financial systems, and financial records.

The government’s response to the Council of Representatives emphasised that the law does not classify the funds of labour unions as public money and does not grant them the protection afforded to public funds.

Their financial resources are limited to membership fees, contributions, grants, donations, bequests, proceeds from events, and other sources that comply with the law and the organisation’s statutes.

Oversight

While the government maintains that these organisations are private entities and their funds are not subject to the Financial and Administrative Audit Bureau’s oversight, it acknowledged a potential for oversight.

The Minister of Youth and Sports can request the Bureau to audit the financial records of sports federations, based on the Associations Law.

This provision allows the minister to review the income and expenses of sports associations and clubs, ensuring the integrity of their resources and the legitimacy of their spending. However, this oversight is discretionary and not mandatory