NGOs urge govt to rethink about new rules on foreign fund use

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A Z M Anas
Non-governmental organisations (NGOs) have made a resolute appeal to the caretaker government to rethink about the new rules regulating the foreign funds utilisation, fearing those could impede the future inflow of external aid, thus delivering a blow to the country's development.
They say the job of the NGOs is to develop "human" as well "social" infrastructure, not to build up physical infrastructure.
The Federation of NGOs in Bangladesh (FNB), a sector lobby, made the call in a letter sent Tuesday to the NGO Affairs Bureau, a competent source said.
The bureau, an apex public body responsible for registering the foreign-aided NGOs, recently issued a circular, directing the non-governmental organisations to spend half their funds on visible development programmes to ensure transparency and accountability.
"At least 50 per cent of the foreign funds will have to be spent on visible development like construction and maintenance of roads, schools and culverts and excavation or re-excavation of canals," the circular reads.
But the FNB letter noted that the NGOs did not have a mandate to spend on building physical infrastructure, as they must abide by the conditions of donors.
The FNB feels that the "invisible" programmes carried out by the NGOs such as social awareness and campaigns have "tremendous" effect on development.
"Whatever money we get from the donors is approved by the NGO Bureau. And the government is aware of our activities," an NGO leader said.
He, however, maintained that transparency and accountability in foreign aid use should be ensured, as the misuse of money meant for the poor could not be tolerated.
The World Bank, in one of its reports, observed that most of the NGOs lacked good corporate governance and suggested effective use of foreign funds.
An FNB delegation, led by its president Muhammad Ibrahim, will call on the director general of the NGO Affairs Bureau today (Wednesday) to discuss the new regulations and their possible impact on the activities of the NGOs.
Talking to the FE, Muhammad Ibrahim said the NGO leaders would try to impress upon the bureau chief to give a second thought to the circular.
"We'll explain the various aspects of the circular which are mostly devoid of reality. We'll also raise the potential impediments if the new regulations are enforced," the FNB chief said Tuesday.
In a recent interview with the FE, director general of the Bureau Alimussan said the bureau would consider the potential "difficulties" of the non-government side in complying with the new requirements.
"If the NGOs want to sit with us on the matter, we'll gladly accept their offer … The bureau will take their problems into consideration and even interact with them on the procedures," he added.
The bureau circular was issued in the light of a notification from the army headquarters on July 9, and it says the NGO Affairs Bureau and the Department of Social Welfare will closely monitor various invisible programmes like public awareness campaigns and trainings undertaken by the NGOs to ensure accountability.
An estimated 5000 local and foreign NGOs are operating in Bangladesh, of which more than 2000 are registered with the NGO bureau, an agency under the Chief Adviser's Office.
As of April in fiscal 2006-07, the NGOs received foreign aid worth US$350 million against a commitment of $565 million, according to figures available with the bureau.