The week saw two developments. The first pertains to a significant number of NGOs who have received a request from the Select Committee of Parliament investigating operations of NGOs and their impact. The information requested includes: 1. All the monies received – give names of donors – and expenditure – give for what purpose – since its inception listed by month and year. 2. Names of all the directors and employees with all the monies paid to them since the inception including monthly salaries.
3. Names and topics of seminars, conferences, study tours, studies, papers etc. sponsored directly or indirectly and amounts paid to each attendee for travel expenses, honoraria etc. Give vocation of attendee. 4. Give copies of conference papers, conference programmes, conference speakers, studies, papers and all publications made by you and participants both local and foreign sponsored by you. 5. Names and vocations of all persons and organizations both local and foreign who participated in the events associated with or organized and the amounts paid to each attendee for travel expenses, honoraria etc. 6. List of foreign conferences attended under the sponsorship and amounts paid to each attendee (give his vocation) for travel expenses, salaries, exgratia payments, honoraria etc. 7. Names and beneficiaries of, and invitees for the above events and the monies spent on each of them by means of traveling expenses, honorariums and all other payments directly or indirectly. Give individual vocations of attendees. 8. List of journalists, politicians, government and private sector officers who have directly or indirectly benefited or participated in activities and the amounts paid directly or indirectly to them individually either through travelling expenses, honorariums, salaries, exgratia payments, and all other payments. Give the name of the beneficiary and the amounts paid. 9. List of all publications and studies done as a collective body or by those associated with them directly and indirectly.
10. Please give copies of all such publications. Please provide the information on the years 2006 and 2007 within one week and the information from the inception.
The letters request information within a week. Some have been at work for 30 years or more and others, have been there for 10 years or less. The questions in the minds of many is, are we looking at a reasonable review or as the title mentions, an investiation of operations. It brings to question the power to investigate, the role of other Government Agencies whose job it is to facilitate, monitor and review the functioning of NGOs.
The second development which was very refreshing was reportedly the hand-over of a long awaited Report focusing on strengthening and re-addressing the Voluntary Social Services Organizations Act No.31 of 1980. This column has received excerpts of the Report which are carried below.
In the wake of 2004 December Tsunami Disaster, large number of national and International Non-Governmental Groups raised public funds world over to assist the Tsunami Victims. The disaster overwhelmed the existing registration and monitoring mechanism of voluntary organizations and hundreds of NGOs were registered without much scrutiny. Within few months there was public questioning of the accountability and transparency of all national and international non-governmental organizations operating in Sri Lanka. Inadequacy and ineffectiveness of the existing legislation, more particularly the Voluntary Social Service Organizations (Registration and Supervision) Act No.31 of 1980 and Amendment Act No.8 of 1998 came to be highlighted.
In this background Hon. K.N. Douglas Devananda, M.P. Minister of Social Services and Social Welfare appointed five member Committee of Volunteers in January 2006 with the following “Terms of Reference”: To examine and report as to the present suitability of the Registration of NGOO Act of 1980 and propose amendments where necessary. To suggest methods to bring about professionalism in the NGOO sector and the necessity of a code of conduct. How to ascertain the competency of the people who arte delivering the services. How to enhance the transparency of the organizations, check the veracity of their claims, impact of the services provided, and linking the services with the mainstream. Is the registration be reviewed and be made bi-annually and the necessity to extend the issue of visas for the expatriates whose expertise can be found locally, and the volunteers who come without sufficient financial stability for their expenses as it becomes a hidden way of employment.
To suggest improvements to any other matters not mentioned above. In the above context, the Committee at its several deliberations considered the following relating to the Terms of Reference (ToR) which are summarized as below:
To examine and report as to the present suitability of the registration of NGOO Act and propose amendments where necessary.
Registration is necessary to enable NGOs to bring in the issues of Humanitarian space, respect of neutrality, provision of infrastructure support to projects, partnership avenues for communities to access aid given to government through tripartite agreements, honouring of commitments to MOU’s. The Committee looked at the various modes of registration available presently in Sri Lanka and observed the complexity involved in tracking down an organization as to its registration, identity and accountability in this context.
The following are various statutes/modes which were brought to the notice of the Committee, coming under both the National level and the Provincial/Divisional level: 1.Voluntary Social Service Organizations (Registration and Supervision) Act, No.31 of 1980 and Amendment Act, No.8 of 1998. 2. Companies Act, No.17 of 1982, Section 21. 3. Special Acts of Parliament. 4. Co-operative Societies Law of 1972. 5. Societies Ordinance of 1891, as amended. 6. Development Act, No.46 of 2000. 7. Rural Development Societies. 8. Protection of the Elders Rights Act No.9 of 2000. 9. Consumer Affairs Authority Act. 10. Trusts Ordinance.
The committee agreed that one system of registration should be introduced in order to enable the Registrar to have records relating to all the NGOs registered. Committee further discussed of the possibility of adopting a system similar to the one contemplated in United Kingdom’s Charity Commission Act.
The schedule hereto contains the following: A list of Organizations registered under the VSSO Act is marked as Annexure, “B”; A list of Organizations registered with the Registrar of Companies marked as Annexure “C”; A list of Organizations incorporated under Acts of Parliament marked as Annexure “D”;
To suggest methods to bring about professionalism in the NGOO sector and the necessity of a code of conduct.
It was suggested to look at rolling out the codes as already ascribed to and suggested that as a code NGOs must ascribe to as part of the registration process in Sri Lanka. Committee discussed that the proposed Commission/Authority could work towards creating an environment in which NGOs take an effort to put together a skills upgrading/ training program where staff can be sent for NGO specific management training and financial reporting will be an essential element.
How to ascertain the competency of the people who are delivering the services.
The proposed Commission/Authority should be given a mandate to promote Competency evaluation to be done of all staff each year and training needs of staff is identified. Under this scheme the State will also be able to access competency of all NGO workers.
Is the registration to be reviewed and be made bi=annually and the necessity to extend the issue of visas for the expatriates whose stability for their expenses, as it becomes a hidden way of employment. The arrangement, which is done to get visas in advance through GoSL, should be continued.
The committee also discussed this issue relating to the time frame and considered if registration should be done once in two years or if it should be done every six months, as it affects the annual planning of organizations.
How to enhance the transparency of the organizations; check the veracity of their claims, impact of the services provided, and linking the services with the mainstream services.
Committee made several deliberations in this regard as it is vital to enhance account-ability in NGOs. It considered the view that audited accounts and annual work plans should be shared with the State through the proposed Commission/Authority that is set up for the purpose of regularizing the registration, accountability and development of the NGOs. Similar to the system under the Companies Act requiring annual statement of accounts, the NGOs will then be liable to report to the proposed Commission/Authority with their financial status. It was also discussed to impose a penalty by way of fine or cancellation of registration, in the event an Organization violates the above to ensure that there is effective execution of the provisions relating to financial reporting.
To suggest improvements to any other matters not mentioned above.
Tax imposed on social service organizations and NGOs Social Service Organizations and NGOs is another important segment to the development of the country. They receive funds from benefactors and philanthropists who want to make a change in poorer societies. The committee discussed if taxation on donations other than what is acceptable should be reviewed as it is not an element promoted in many other countries. Freedom to be actively engaged in the social development of the country. Social service organizations and NGOs should be respected for what it has been contributing so far. The NGOs step into development processes, which the Government is reluctant to step into. An example is the Family Planning programme, which was carried out for the government.Hence, appropriate freedom to act in the development process should be made readily available and the Committee recognized that the rights envisaged in the Constitu5tion relating to freedom of association should not be violated or hindered in any manner in the course of implementing the suggested Commission/Authority’s mandate.
National experts to lead the sector
The National Policy of engaging local expertise should be strictly implemented. However, expatriates should be given the facility to visit the country and monitor the projects and programmes they fund.
Financial Support by State
The committee considered of the possibility of making suggestions to the Government to implement a scheme where a fund could be maintained to disburse finances among the NGOs to carryout development plans, through making Tax Exemptions for Commercial Entities that donate to such fund annually. A list of ‘well operating’ NGOs will be maintained for this purpose depending on the financial reporting and other steps taken towards accountability by them, who will be the beneficiaries of such a system. This environment is expected to promote accountability, provide financial stability throughout the year for CBOs and other NGOs, utilize tax payments directly for the development plans, liberate NGOs from foreign dependability, etc.
Foreign expertise to be used in the future ;
The committee decided to obtain expertise in the international Non Profit Management/ Legal Aspects in order to make its deliberations more productive and practical, to provide the Government with a well studied recommendation. For this purpose the International Development Law Organization, based in Rome, expressed its willingness to part with the services of an international expert in the field. Consequently, Ms. Lindsey Driscoll, a Member of Charity Commission, United Kingdom, Expert in NGO Legal Aspects, visited Sri Lanka and carried out a study of the present regime and the improvements to be made, from the 1st to the 14th November 2006. The Committee arranged sessions with the expert on the legal, developmental, accountable, managerial and social aspects relating to Non Profit/Voluntary Organizations around the world and through such exposure to be able to select a process much adoptable to the Sri Lankan context.
(http://www.dailymirror.lk/2007/02/22/opinion/1.asp)
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