Regulation of objections to violations: 60-day deadline and independent committees
In a move aimed at enhancing transparency and protecting beneficiaries' rights, the National Center for Inspection and Control launched a new regulatory project through the "Istilaa" platform. This project establishes a comprehensive framework for governing procedures for appealing violations across all government entities in the Kingdom of Saudi Arabia. The project aims to standardize criteria and mechanisms, ensuring the accuracy of committee formation and the integrity of their decisions.
Context of legislative reforms and Vision 2030
This move comes within the broader context of legislative and administrative reforms underway in the Kingdom under the umbrella of "Saudi Vision 2030," which focuses primarily on improving the investment environment and enhancing the efficiency of government performance. Previously, appeal procedures varied from one entity to another, potentially causing confusion for businesses and individuals. This new regulation represents a significant step forward, aiming to eliminate individual interpretations and standardize procedures, thereby strengthening the rule of law and administrative justice.
Details of independent committees and guarantees of impartiality
The new regulations mandate that government agencies form independent review committees by decision of the relevant minister. To ensure efficiency and professionalism, the draft stipulates that the committee must consist of a minimum of three members: a legal member, a technical member specializing in the activity, and an independent member. The draft emphasizes the principle of "complete impartiality," prohibiting the committee chair or their deputy from being administratively affiliated with the agency that investigated the violation, while granting the objecting party the right to request the recusal of any member in the event of a conflict of interest.
Deadlines and digital transformation
The regulations granted complainants a sufficient period of up to 60 days to submit their objections through the "National Inspection and Oversight Platform" from the date of notification of the violation. Conversely, the regulations obligated the committees to decide on the applications within only 15 days of the completion of the required data, with the possibility of a single 10-day extension if necessary. The regulations stipulated that the failure to issue a decision within the prescribed period constitutes an "implicit rejection," thus allowing the complainant to appeal directly to the administrative judiciary.
Expected impact: Boosting confidence and protecting the economy
This regulation is expected to have a significant positive impact on both the local and economic levels. At the business level, a clear and independent appeals mechanism will increase investor and SME confidence in the regulatory system, ensuring protection from arbitrary or erroneous decisions. The rules also allow for the temporary suspension of penalties if their implementation would cause significant harm to the appellant, providing a vital safety net for business continuity.
Confidentiality and expert assistance
The project emphasized the confidentiality of sessions and deliberations to ensure data privacy, while requiring members to disclose in writing any interests that might affect their impartiality. The regulations also authorized committees to seek the assistance of external technical experts to provide opinions on complex issues, thereby enhancing the quality of decisions and ensuring they are based on sound technical principles.
