New push to let bankrupt people keep jobs in govt

The Strategic Transformation Office (STO) has proposed amendments to the bankruptcy law, which would allow someone declared bankrupt to hold an important position in the government sector.

The proposed changes, which are open to feedback from the public until May 23, aim to change the perception of bankruptcy and those who are declared bankrupt.

The STO says bankruptcy does not affect people’s ability to work and bankruptcy is not always related to fraudulent practices. The changes are intended to help the public and private sectors retain qualified bankrupt employees and prevent unfair treatment and discrimination.

One proposal includes differentiating between “bankrupt” and “dishonest bankrupt” individuals in law and creating employment opportunities for those who are declared bankrupt.

A “bankrupt” person is an individual who is declared insolvent by a court under the law. A “dishonest bankrupt” person is defined as those convicted of offences under Sections 163-170 of the bankruptcy law or involvement in embezzlement or fraud under the Criminal Code.

Both “bankrupt” and “dishonest bankrupt” individuals are required to notify the authorities in charge of appointments of their status without delay.

Under the proposed amendments, a “bankrupt” individual working in the government sector can continue in their current position if their bankruptcy does not affect their job performance or reputation.

However, t his does not apply to positions requiring holders to submit their assets or manage financial responsibilities.

In such cases, a “bankrupt” person must be reassigned to another role but can be reinstated after they are no longer bankrupt.

The proposals suggest amending 13 other laws to change “bankrupt” to “dishonest bankrupt,” as these laws prohibit “bankrupt” people from holding certain positions. The law revamp is part of a reform process to address outdated laws and regulations seen as overly restrictive and limiting people’s opportunities.