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NGO money under microscope

10 Mar 2020

By Skandha Gunasekara Recent developments indicate that the Government would be taking measures to monitor and regulate non-governmental organisations (NGOs), with the first step being financial regulation. The Sectoral Oversight Committee on National Security has recommended that steps be taken to establish a mechanism that would allow the regulation of all finances received by Sri Lanka from NGOs. The committee report, which was released on 19 February 2020, recommends that a system be put in place to integrate the Central Bank and the national intelligence apparatus with NGOs for this purpose. “Establishing a mechanism enabling to integrate the Financial Intelligence Unit of the Central Bank, Chief of National Intelligence, and the NGO Secretariat so that it will be possible to regulate all the funds and assistance received by Sri Lanka from non-governmental organisations,” the report stated. The committee has also recommended that an act akin to the Foreign Contribution Regulation Act be established to properly audit foreign assistance received by Sri Lanka. “To establish an act like the Foreign Contribution Regulation Act under the NGO Secretariat and take steps to properly audit the foreign assistance received by Sri Lanka. Similarly, it should be ensured that these funds are utilised in a manner that leads to the betterment of all the ethnic groups of the society.” The committee was appointed by Parliament following the Easter Sunday carnage on 21 April 2019 and comprised of MPs Shehan Semasinghe, Vijitha Herath, Weerakumara Dissanayake, Buddhika Pathirana, M.S. Thowfeek, Palitha Thewarapperuma, S. Viyalanderan, Dharmalingam Sithadthan, A.A. Wijethunga, M.A. Sumanthiran, Chandima Gamage, Kavinda Jayawardana, Mayantha Dissanayake, Bandula Lal Bandarigoda, Muhammad Ibrahim Muhammad Mansoor, and Prof. Ashu Marasinghe. When The Sunday Morning contacted Government Spokesperson Minister Keheliya Rambukwella to inquire about the Government’s response to these recommendations, he said that they would first be presented to Parliament. “These recommendations would have to go before Parliament first. A debate would have to be held and then parliament approval will be sought,” he said. However, he said, if needed, the President could implement these recommendations. “I think the President is empowered for a given period following the dissolution of Parliament,” he said. He added that it was crucial for there to be transparency when it came to foreign funding for NGOs and what the funding was used for. “It’s a question of what the funding is, what for, and where the funding came from. I think that is fair. I mean if one wants to help our country seriously and genuinely, I don’t think there is a problem being transparent with their finances,” the Minister noted. However, when queried as to whether the regulation of NGOs would extend beyond finances, the Minister said that it would depend on the circumstances. “I don’t think it would extend much further than financial regulations but if there are any, it would be in a situation where the funding was used for a purpose other than what it was declared for. Then further investigations into that organisation may be required. If you find something dubious happening, then the authorities will have to take steps beyond just financial regulations,” he said. The Minister said that it was essential for the country and the people to know what was being funded by such organisations. “It is a question of accountability and knowing what foreign funding is being used for,” he said. While assuring that this was not an attempt to clamp down on NGOs, the Minister said that national security was the priority of the Government, and that extreme measures such as the banning of such organisations, were a possibility. “It all depends. If the purpose of the NGO is sinful and is detrimental to national security and it is purposely manipulated, then you’ll have to follow procedures to take necessary action,” he said adding that if there were any suspicions of an organisation, then it could come under state surveillance. “If when under the guise of humanitarian activities NGOs endanger national security, then I think authorities will have to take whatever regulatory actions are needed,” he said. Meanwhile, Minister of Higher Education, Technology, and Innovation Dr. Bandula Gunawardana speaking to The Sunday Morning said that the implementation of these recommendations would be decided only after the upcoming parliamentary elections. “This will have to be taken up by the new Parliament as well as by the new Cabinet of Ministers following the general election next month. Only then can a decision be taken on these recommendations,” Minister Dr. Gunawardana said. Further, he went on to say that under existing laws, the Central Bank did not have the powers to regulate NGOs. “If these recommendations are to be implemented, new additional laws would be needed to empower the Central Bank to be able to monitor and regulate the finances of NGOs,” he said. In addition, he said that there were obstacles in regulating the finances of religious institutions. “Some of these NGOs are registered under the guise of religious institutes. Religious institutes are exempt from certain laws such as the need to pay taxes,” he said, noting that new laws would be needed to circumvent such restrictions. In addition, President Gotabaya Rajapaksa, addressing a meeting of heads of media institutions ast week, revealed that the Government would also look at the recommendations of a previous parliamentary committee. The President pointed out that a Parliamentary Committee had been appointed during the presidency of Chandrika Bandaranaike Kumaratunga, to look into the activities of NGOs. This committee was headed by JVP MP Vijitha Herath and recommendations of that committee would also be taken into consideration in the Government moves to regulate NGOs, he said.


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