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Local NGOs and the draft proclamation

Saturday, 24 May 2008

By Melaku Demissie This time round local NGOs in Ethiopia appear to be unhappy with what the government is doing in preparing the draft law on the establishment and operation of "Charities and Societies" in Ethiopia. Last week, they submitted a 40-page document which they called an assessment of the draft proclamation to negotiate with the government on particular core issues. The three fundamental issues that they feel are restrictive, namely the issue of accessing foreign funds, the establishment of a regulatory body and the issue of penalties. Though the local NGOs have declined to comment on the contents of the document which was prepared by a committee comprising representatives from different NGOs, some of them said on conditions of anonymity that they fear the draft proclamation could force them to significantly scale down their activities or even go out of operation. They feel that with the meager resources generated from the local sources they could not participate effectively to fight poverty, which is number one enemy of the nation. They also fear that the proposed law may prevent them from engaging in advocacy works such as voter education, election observing and others. Though not yet confirmed, due to the rising concerns over the draft proclamation, some western countries' embassies and international organizations have started talks with government officials in order to review the draft and to discuss issues with the local NGOs.   The draft law clearly indicated that local NGOs are only those that acquire 90 percent of their total assets from local sources while the remaining ten percent can be acquired from outside. If over ten percent of the funding is obtained from foreign donors, the NGO will be considered as a foreign charity. In its short title the draft law indicated that "Ethiopian Charities" or "Ethiopian Societies" shall mean those charities or societies that are formed under the laws of Ethiopia and all of whose members are Ethiopians and are funded or controlled by Ethiopians. However, they may be deemed as Ethiopian charities or societies if they receive money from foreign not more than ten percent of their total asset. Charities or societies may, upon a written approval of the agency, engage in income generating activities that are incidental to the achievement of their purposes and the proceeds of which shall not be distributed among the members of beneficiaries of the charity and are used to further the charitable purpose for which the charity was licensed to operate. The draft law included an article that stipulates that a regulatory body, Charities and Societies Agency, shall be established to oversee the operations of local NGOs. The NGOs which transgress this law are liable to punishment with fine. According to the draft law, the agency, which would be accountable to the Ministry of Justice, shall have objectives like maintaining public trust in charities and societies by ensuring that their operation is according to their objectives; promoting compliance by officers with their legal obligations in exercising control and management of the administration of charities and societies; promoting the effective use of resources of charities and societies; and enhancing the accountability of charities and societies to donors, beneficiaries, the general public and the government.  It is also given power to identify and investigate misconduct or mismanagement in the administration of charities and societies and to take protective or remedial action. The agency, a sector administrator or any police officer authorized in writing by the agency or sector administrator, may at any reasonable time enter any place which it or he has reason to believe is kept or used by any charity or society or any of its members as a place of meeting or business or may take part in any meeting of a charity or society. The draft law also indicated that any person exercising the power vested under the law shall furnish the charity or society whose place of meeting or business is being entered a letter from the authority authorizing such entry. With regard to criminal acts the law says that charities and societies shall not act beyond the limits set by this law and their respective constitutive rules. Any charity, society or person who contravenes any of the prohibitions of the article shall be punishable with fine or simple imprisonment or both. Article 69 of the draft law maintains that charities and societies shall be deemed to be formed when they fulfill the minimum number of founders and other requirements set forth in this law. Any charity or society shall apply for registration within three months of its formation. Irrespective of the provisions of sub-article (2) of this article, the agency may allow a charity or society to apply for registration not more than three months where good cause has been shown. Regarding refusal of application for registration, Article 74 says that the agency shall refuse to register a charity or society when the rules of the proposed charity or society are insufficient to provide for its proper management and control; the proposed charity or society is likely to be used for unlawful purposes or for purposes prejudicial to public peace, welfare or good order in Ethiopia; the agency does not have jurisdiction to register the applicant; the application for registration does not comply with the provisions of this law or any regulations; and where it is a foreign society. In the section of accounts and reports the draft law stipulates that the officers of a charity or society shall ensure that accounting records are kept in respect of the charity or society which are sufficient to show and explain all the transactions and disclose at any time. The accounting records shall, in particular, contain entries showing from day to day all sums of money received and expended by the charity or society and the matters in respect of which the receipt and expenditure takes place, and record the assets and liabilities of the charity or society. Charities and societies may not receive anonymous donations and shall at all times keep records that clearly indicate the identity of donors. Any charity's or society's account shall be examined annually by a certified auditor or internal auditor or an auditor designated by the agency. However, some observers comment that though some of the articles in the draft law are restricting the NGOs operations, the overall objective of the law is to provide transparent and accountable working atmosphere within the charity society. The draft proclamation prepared by the government clearly indicates that the existing legal regime has been found inadequate to provide for the proper administration and regulation of charities and societies. It also said that it was found necessary to enact a law in order to ensure the realization of citizen's right to association enshrined in the Constitution. The registration, licensing and regulation of charities and societies has been found necessary for the prevention of the illegal acts that are perpetrated in the name of serving it, and for the fulfillment of the government's duty to protect the public against illegal activities contrary to peace, order and morality.                                                                                                                The first organizations in Ethiopia which can be defined as NGOs were traditional self-help systems. They existed in the country for centuries before they started to develop some sort of structure. In time, developing further, some were registered as proper organizations and today they are better know as Community Based Organizations (CBOs). Some of these early self-help systems were the Debo and Afarsata which were systems providing mutual aid and reconciliation. Today the commonly known self-help systems are Ekub and Edir, which is a rotating saving and credit system. In 1960, both foreign and local NGOs were established when these self-help groups could no longer suffice to support the needy of the country. The first NGOs as we know them today that were established in the country were the Ethiopian Red Cross and Swedish Save the Children.  Following this and the famine of 1973 and later of 1984, the number of NGOs increased and these were mostly international. Later on with the change in government in 1990 a more favorable environment was established further encouraging the growth of NGOs in Ethiopia. This time as their numbers increased more local NGOs flourished.  Today 90 percent of NGOs operating in the country are local. Last year it was reported that over 3,000 local and international NGOs, including various civil society organizations, were registered in Ethiopia. Currently, the number has increased to over 3500. Considering this number, we can say that the NGO sector in the country as compared with neighboring countries is large. However, compared to other developing countries, this is small. The history of NGOs in Ethiopia began by providing relief services which lasted for a long time. With an improvement in the situation after the famine, the focus of NGOs shifted towards rehabilitating people in need. This was then gradually followed by NGOs involvement in development programs. Although a large majority of the NGO sector undertakes development programs today, because of recurring drought in certain pocket areas of the country, there are NGOs which undertake relief activity alongside their development programs.  A further improvement in their development work is the establishment of a few advocating NGOs.

 

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