What Is Settlement in Embezzlement Cases?
Translation of the attached article:
Settlement in embezzlement cases is considered one of the important legal topics in the Kingdom, due to the different statutory provisions governing it under Saudi law. Settlement or waiver is not permitted in all forms of embezzlement.
The law distinguishes between embezzlement crimes involving private funds and those involving public funds in order to protect the public interest and ensure that offenders do not escape punishment. Therefore, the effect of settlement differs from one case to another depending on the nature of the money subject to the crime and whether it is public or private money.
In this article, we will explain what settlement in embezzlement cases means, the difference between settlement in public fund embezzlement cases and private fund embezzlement cases, and the best law firm you can turn to in such cases.
Settlement in Embezzlement Cases
Settlement in embezzlement cases means ending the criminal dispute by mutual agreement between the parties. However, this does not apply to all forms of embezzlement under Saudi law.
Settlement is only permissible in embezzlement crimes involving private funds, as these are considered crimes connected to individuals’ rights.
As for public fund embezzlement crimes, settlement is not permissible under any circumstances because they affect public funds and the public interest. This requires continuing the prosecution of the offender and imposing the legally prescribed penalty without giving effect to any waiver or agreement.
Settlement in Private Fund Embezzlement Cases
In Saudi Arabia, settlement in embezzlement crimes is only permissible if the crime was committed against private funds. Public fund embezzlement does not accept any type of settlement under any circumstances.
Private funds refer to money that the offender unlawfully obtained as a result of their job, a trust, a loan for use, a pledge, a lease, or through any act that leads to acquiring the money unlawfully.
The Saudi Criminal Procedure Law provides for the cases in which a private criminal action is extinguished, and they are only two cases:
- Issuance of a final judgment in the case.
- The victim or their heir pardons the offender.
Accordingly, a claimant whose private money has been embezzled may waive the claim and settle with the offender, provided that the unlawfully taken money is returned in full.
Settlement in Public Fund Embezzlement Cases
Settlement in public fund embezzlement cases cannot be carried out under any name or circumstance. The public criminal case relating to embezzlement is only extinguished in the cases stated in Article 22 of the Saudi Criminal Procedure Law, which are four cases as follows:
- Issuance of a final judgment in the case.
- Pardon by the ruler.
- Repentance that extinguishes the penalty according to its Sharia controls.
- Death of the accused.
It is therefore clear that public fund embezzlement is a crime in which settlement is not permissible. The public employee who embezzles public funds must instead be punished with the penalties prescribed by Article Two of Royal Decree No. 43 of 1377 AH, which include imprisonment for 10 years or a fine of more than SAR 20,000.
For a broader understanding of crimes related to financial and administrative corruption, you can also read our article on the elements of the crime of bribery under Saudi law.
The Most Important Defenses in Embezzlement Cases
The accused in an embezzlement case, or their lawyer, may submit several defenses in the case to prove the accused’s innocence or at least reduce the penalty.
Below, we explain the most important defenses that may be used in embezzlement cases:
- Proving the absence of criminal intent on the part of the accused to embezzle the funds, and that the act was committed without intent or knowledge.
- Proving that the accused acted in good faith, believing that the money was due to them or that they had the authority to dispose of it.
- Proving that the material act of embezzlement did not occur, was not sufficiently proven, or is not legally classified as embezzlement under the regulations and laws applicable in the Kingdom.
- Proving the existence of serious errors in the legal procedures followed or in the collection of evidence, such as failure to respect the accused’s rights during trial or investigations.
- Challenging the legality of the evidence presented, such as if it was obtained through unconstitutional or unlawful methods.
- Proving that the witnesses to the crime have personal motives against the accused or are unreliable.
- Showing clear contradictions in the evidence submitted by the prosecution, which raises doubt about the validity of that evidence.
- If the crime is very old and has exceeded the legally prescribed limitation period.
- If the person who filed the claim or complaint does not have legal standing to bring the case.
- Raising a defense of lack of jurisdiction of the court hearing the case, whether territorial or subject-matter jurisdiction.
To learn about the most prominent legal and defense aspects in this type of case, we recommend reading about defenses in public fund embezzlement cases.
Best Law Firm for Embezzlement Cases
If you have been accused of embezzlement, you must seek the assistance of a lawyer specialized in financial crime cases, as they will help you defend your rights throughout the case and submit the appropriate defenses.
Nawaf bin Awad Al-Harbi Law Firm is considered one of the best firms with lawyers specialized in financial crimes and embezzlement cases, as they can help you with the following:
- Preparing a strong defense memorandum against the allegations submitted by the prosecution, highlighting their weaknesses and proving your innocence.
- Studying all aspects of your case carefully, including the circumstances of the incident, the evidence presented against you, and the applicable laws and procedures.
- Submitting evidence that proves your innocence of the accusations made against you.
Contact us now to benefit from the experience of the best criminal cases lawyer in embezzlement cases, and to obtain accurate legal consultation that explains whether settlement is permissible in your case and the best legal procedure to protect your rights.
Legal Articles Governing Embezzlement Cases
The Saudi Criminal Procedure Law has established a set of provisions related to embezzlement cases, whether involving public funds or private funds.
Article (22) of the Saudi Criminal Procedure Law states:
“A public criminal action shall be extinguished in any of the following cases:
1- Issuance of a final judgment.
2- Pardon by the ruler in matters covered by the pardon.
3- Repentance which, according to its Sharia controls, extinguishes the penalty.
4- Death of the accused.
This does not prevent the continuation of the private right claim.”
This article clarifies that the case related to public funds does not end except according to these cases, which ensures the protection of public funds and prevents any leniency toward violating employees.
Article (23) of the Saudi Criminal Procedure Law also states:
“A private criminal action shall be extinguished in either of the following two cases:
1- Issuance of a final judgment.
2- Pardon by the victim or their heir.
The pardon of the victim or their heir shall not prevent the continuation of the public right claim.”
This article aims to ensure that the offender does not escape punishment even if a settlement is reached with the owner of the private funds, thereby preserving public order and the state’s public right.
Conclusion
Thus, it becomes clear that settlement in embezzlement cases is only possible in cases involving private fund embezzlement because it concerns individuals’ private money. Therefore, settlement is permissible if agreed upon, while settlement is not permissible in cases of public fund embezzlement because it does not concern one individual only, but society as a whole.
Understanding embezzlement cases accurately also requires learning the difference between theft, embezzlement, and unlawful appropriation.
Frequently Asked Questions
Is waiver permissible in embezzlement cases?
Yes, it is permissible if the embezzlement involves private funds only and the owner of the money waives the private right claim. However, waiver of the public right is not permissible in cases of public fund embezzlement.
What is the penalty for public fund embezzlement in Saudi Arabia?
Unlawfully taking another person’s money through illusion, deception, lying, or trickery is punishable by imprisonment for a period not exceeding seven years and a fine not exceeding SAR 5 million, or by either of these two penalties.
What are the possible defenses in the crime of embezzlement?
One of the most important defenses in embezzlement cases is challenging the validity of the procedures. This includes any violation of the accused’s rights during trial or investigation, or challenging inaccuracies or distortion in the evidence.