WRITE-OFF OF DEBTS AND ASSETS UNDER FINANCIAL ADMINISTRATION LAW NO. (6) OF 2019

Objective: This research examines the legal authority to write off government debts and fixed assets under Federal Financial Management Law No. (6) of 2019, focusing on the legal framework governing the write-off process, the conditions required for its implementation, and the mechanisms for safeguarding the State’s financial rights. The study addresses the concept of writing off debts and fixed assets from legal and accounting perspectives, highlighting its significance in the management of public funds and the settlement of government financial accounts. Method: It examines the powers granted to the Minister of Finance to waive government debts, defer payments, or authorize installment arrangements within the limits established by the Council of Ministers. It also analyzes the conditions governing the write-off of government debts when their collection becomes impossible after exhausting the legally prescribed means, including formal notification, attachment, and the sale of the debtor’s property. Furthermore, the research discusses the role of the Council of Ministers in approving the write-off of debts and assets exceeding the financial authority granted to the Minister of Finance, while examining the hierarchical distribution of write-off powers under the applicable budget instructions. The study also emphasizes that writing off debts and assets does not preclude the State from pursuing legal action against persons responsible for loss, damage, negligence, or misuse of public property. In this context, it highlights the importance of administrative investigations, financial liability under the Guarantee Law No. (31) of 2015, and criminal accountability as mechanisms for protecting public funds. Results: The research concludes that the existing legal framework establishes a distinction between the financial and administrative procedures of writing off and the legal responsibility arising from damage to public assets. Novelty: It recommends explicitly regulating write-off authorities and financial limits within the legislation itself, distinguishing between write-offs resulting from ordinary use and those arising from negligence, establishing specialized committees, strengthening administrative training, and restricting the write-off process to the relevant financial year. The study seeks to contribute to clarifying the legal mechanisms governing the write-off of government debts and fixed assets while enhancing the protection of public funds and ensuring compliance with the principles of financial and administrative legality.