Council backs oversight of endowment assets

Draft law proposes harsher penalties for negligence and fraud

A new draft law stipulates harsh penalties for those who fail to safeguard endowment assets.

The draft law passed by the Federal National Council yesterday seeks to impose a Dh50,000 fine or at least a year in jail, whether the loss of assets was through negligence or fraud. The law also vests oversight for all endowments in the UAE Authority of Islamic Affairs and Endowment.

Dr Mohammed Al Kaabi, head of the authority, noted the need for a comprehensive law regulating endowments given that there are Dh3 billion worth of endowment assets in the country.

Assets include 1,431 buildings, 1,867 shops, 1,300 apartments and 76 plots of agricultural land, a site allocated to build a petrol station, 140 cars, and 14 villas.

There are also endowments in the form of stocks in the Abu Dhabi and Dubai financial markets. Additionally, rentals from 4,000 properties also go to endowments.

“The goal behind this law, which has been three years in the making, is to encourage more people to offer endowments, because now they will feel secure that there is a governing body who will make sure their endowment money is going to the right place,” Dr Al Kaabi said.

Members of the council raised concerns about a clause stipulating that a permanent endowment – such as a mosque, graveyard, or anything specified as such – cannot be withdrawn even if the benefactor faces a financial crisis. Member Marwan bin Ghalita said the draft law allows the benefactor of a temporary endowment to withdraw his offering if he faces financial issues that could put him in jail, “so why not apply that to permanent endowments too?”.