NGOs need reforms urgently

Columnist MUHAMMAD ANWAR KHAN says that we must act decisively.

NGOs are coming under increasing criticism for their vagrant ways. It has been suggested that a Judge of the Supreme Court should be appointed to look into their working. While some of this criticism may be misplaced, it is nonetheless inadvisable to shut our eyes completely to what is happening to the moneys placed at their disposal. For the sake of NGOs themselves, which have all been set up for laudable objectives, government and the society at large needs to exercise greater vigil on their activities and to institute the long over-due reforms in this sector.
For a start, NGOs do not need a lot of money and other assets. They just need a cause, which will attract approval of the Regulatory Authority, has a public appeal and is also likely to attract donations. If one knows a bureaucrat in a high place, so much the better. He may be of help in arranging grants and other facilities from the government, as, in our country much depends on government patronage. Apropos the statement made by a high dignitary from the Punjab sometime ago, one gets the impression that some civil officials appear to have very close links with NGOs. This may act as a double-edged sword. On the one hand, NGOs may succeed in securing some facilities from the government and may also get their problems resolved. On the other hand, this patronage may translate into placement of their kith and kin in important positions in these organisations and may eventually, as is often the case, assure a niche for these officials upon their superannuation. Too excessive involvement of bureaucrats in the day-to-day working of these organisations inhibits their ability and will to operate to the larger good of the target population.
An NGO’s strength does not lie so much in the initial cash outlay — though this is an important consideration for a fledgling undertaking — as in the cause chosen, together with honesty of endeavour, single-minded devotion and commitment, as well as articulation of all effort to realise this cause. Without these attributes, the NGO, with all the money in the world, will end up the way, some of them do.
There is nothing wrong with the concept of NGOs. All religions and more importantly Islam enjoins upon followers to help the needy. Doubtlessly, it is the primary responsibility of the Government and of those who have the responsibility of running it to meet needs of the community, but let alone our Government, which for ever remains starved of funds, no Government, however efficient and affluent can meet all needs of the community and would need help from those, who have the time to spare and also have the spirit and will to work for a cause with wholehearted devotion and also of those who have the money to spare, to fill in the gaps. Wider the gap, larger the need for outside help.
The concept of NGO is as old as the start of civilisation itself, but the terminology of NGOs appears to have been invented in the West, not long ago. There appears to be no harm in using this terminology so long as the needy are being helped. In other countries, some NGOs have gained worldwide popularity and are helping other countries also. In our country, it is advisable first to understand the purpose and role of an NGO and then to ensure that it is performing the function for which it was set up. NGOs do not appear to have faced many problems in raising donations, but what appears to have been wanting is the reforms at their end. One great advantage in our country is that donors prefer to give donations direct rather than through or to the Government.
In our country, to be fair to our Government, it allows liberal reliefs in Income Tax to donors by way of Income Tax Exemption. Our Government also appears to have gone a step further. The Regulatory Authority, when sanctioning establishment of an NGO imposes two compulsory conditions invariably. One condition, relates to preparing the Annual Accounts and getting these audited by an Auditor appointed by the Regulatory Authority and the second condition, relates to preparing and submitting Annual report on the working of the organisation. With lax controls, which had been the pattern of running our Governments, there does not appear to have been insistence on fulfilment of the above conditions except in some rare cases, when it was intended to victimise someone on political grounds or with some other ulterior motives.
With no controls in place and philanthropy abounding from the philanthropists and grants from the Government, it would not be surprising, if NGOs have not grown and developed as one would have wanted. There has been mushroom growth of NGOs. It is being said that some NGOs exist on paper only. It is understood that some NGOs including some of their shining stars do not bother to submit audited accounts and annual reports. There may be others, who may be preparing kind of audited accounts and kind of annual reports in order to satisfy donors and the Government. One cannot, however, rule out some good and noble exceptions among them.
All kinds of stories are in circulation about NGOs. Involved, as the whole Society is in rat race for money, it is understood that causes and people, whom they are expected to serve are no longer important items of their agendas and that all their efforts are concentrated on finding avenues for spending money on various items including designing construction of buildings, their furnishings and helping one and another in the process. If the constitution is available, rules under the constitution have not been formulated and in any case, the will and commands of a few prevail, ignoring all well-established practices and norms of business. The persons, who establish the NGOs, appear to be caught up in time warp. They are not prepared to change or yield their places to others even though they may no longer have the time to spare. It is understood that the problem of succession is looming large in NGOs. Large assets including cash and properties have been acquired and the question arises as to who is going to acquire these, when the existing persons are no longer on the scene through the Will of God. Will all these assets pass on to sons and daughters of the present managers? Some of them may indeed have worked hard, but they did so, for the welfare of the community and not for their sons and daughters.
The general impression about NGOs is that NGOs are working as closed shops, with no interaction among themselves. Jealousy, greed, intrigues, politicking and even corrupt practices are said to be taking hold. They shun the idea of electoral reforms and do not wish to implement constitution, if they have any. At best, they may be willing to implement only those portions of the constitution, which suit them. When their interpretation of some clause of the constitution is questioned, their reply invariably is that they have written the constitution and they know, what each clause means. In one case, it is understood that just to accommodate a party member, the member was employed on a salary, when the constitution explicitly required that all members are to serve on voluntary basis. When questioned, the answer came that the membership of the member was terminated during the period of service and was only restored, when the member left the service. There is no provision for such arrangements in the constitution and in any case, there appears to be no written record available for taking such decisions.
In sum, we need NGOs as the gap between the needs of the Society and what the Government can provide is becoming larger and larger. What is needed, is a reformed NGO sector, which is imbued with voluntary spirit, sense of commitment and honesty of purpose. The latter, much needed principles now appear to be dying out in the race for greed and money. If the foreign funded NGOs are performing better, the remedy lies in home grown NGOs performing even better and not in throwing out foreign funded NGOs. Another principle, which needs strengthening in our country, is the strengthening of the organisation rather than of some individuals. The latter can come and go, but the organisation should remain. This has been proved by International organisations like Red Cross, Red Crescent and several others.
It is hoped that the importance of making reforms in NGOs will be realised. In this connection given below are some suggestions for reforming this sector.
i. it is suggested that first of all an opportunity is given to all NGOs to offer themselves for full accountability and to declare to the general public that all their operations will be open and transparent and that anybody and everybody can have full access to information and data about their operations.

ii. NGOs existing on paper should be de-registered.

iii. all NGOs should have written constitutions and should formulate Rules under the Constitutions. The Constitutions and Rules framed thereunder should be implemented in all respects. Where constitutions need to be rewritten, this should be done.

iv. proper arrangements for election of office-bearers should be ensured. It is not necessary that all office-bearers should only be from one lot of persons. For this purpose, electoral reforms would be required. No person should hold office for more than two terms at one time. There should be break of at least one term. Husband and wife should not contest elections at the same time. The composition of Trusts and Foundations should also be reviewed so that sons and daughters of founders do not step into the shoes of their parents automatically.

v. the General Bodies of NGOs are making no contribution whatsoever in controlling the working of NGOs. It is suggested that General Bodies should include donors. Constitutions of some NGOs make mandatory provision for this, but for obvious reasons, this portion of the Constitution is being ignored mostly; although existence of NGOs depends on donors. It is suggested that large donors should also be given voting powers.

vi. it is suggested that Management and Accounting Audit of all NGOs should be entrusted to Auditors from outside, for which it is suggested that a Panel of Auditors is constituted in consultation with Donors and Members of the Association. The sooner, this work can be started the better. No NGO should be considered above Law and all NGOs should be asked to submit their accounts and other records for scrutiny by the Auditors.

vii. sub-Committees should be set up in which members of the Associations and donors should be included for making large purchases and awarding work relating to designing of buildings, their construction, furnishing etc.

viii. in order to check performance, again donors and members of the Association and experts operating in the field should be included in the Inspection Teams, which should carry out periodical inspections of operations of NGOs.

NGOs in India also appear to be in trouble. In this connection, given below is a news item, which appeared in the Indian Press sometime ago.

“Delhi High Court blocks fresh funds to NGOs
By A Staff Reporter
NEW DELHI: The Delhi High Court on Tuesday directed the Union government not to release any more grants to non-government organisations (NGOs) until they produce the certificate of utilisation of previous grants.
Upset over the fact that more than Rs 7,500 crore released as grants to NGOs has not been accounted for so far, a division bench of Chief Justice Arijit Passayat and Justice D K Jain issued a notice to the Centre, the finance ministry and the Comptroller and Auditor-General, asking them to file their replies by December 12.
According to public interest litigation filed by advocate B L Wadhera, as on March 31, 1999, as many as 30,517 utilisation certificates involving Rs 7,535.49 crore grants have not been submitted by the NGOs and some government organisations.
As many as 22,658 pending utilisation certificates, involving
Rs 2,701.79 crore, relate to the period 1976 to 1996.
According to a list of defaults submitted before the court, at the top are the NGOs aided by the education ministry, with Rs 3,458 crore grants unaccounted for. It is followed by the departments of women and child development
(Rs 1,590 crore), family welfare (Rs 961 crore), health (Rs 413 crore), culture (Rs 361 crore) urban affairs and employment (Rs 295 crore), youth affairs and sports (Rs 217 crore) agriculture and cooperation (Rs 117 crore).
Wadhera said despite non-receipt of utilisation certificates, various ministries released Rs 246.5 crore as grants in 1998-99.” (courtesy-Internet).
It may be necessary to take some such action in Pakistan also. Enquiry by a Judge of the Supreme Court will be a time consuming and lengthy process, whereas the situation calls for immediate and urgent reforms.