New bill bans luxury car purchases with public funds

Economic sectors of the government will now have to obtain approval from the minister of economic development before using public funds to buy Jeep Cherokees or sedans thanks to a bill submitted by the cabinet to the People’s Assembly economic committee yesterday.

The bill said that the purchase of cars with more than four cylinders for official use is contingent on the minister’s approval, backed by the prime minister’s authorization.

The bill stipulates that the proposed restrictions will be applied to ordinary cars, station wagons, double cabins, in addition to vehicles prepared for special purposes.

The priority in purchases will be given to locally-made vehicles, according to the bill. The bill also says that no contracts should be made for investment projects that require importing components that cannot be covered by the foreign currency reserve or soft credit.

The bill cautions authorities against using local currency reserves without approval by the minister, or before notifying the Ministry of Finance and the National Investment Bank.

Translated from the Arabic Edition.

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