July 17 circular on aid use by NGOs withdrawn
Friday, 27 July 2007
AZM Anas
The caretaker administration has withdrawn the much-debated circular issued to restrict foreign aid use by non-government organisations (NGOs) in the wake of intensified lobbying from the development community.
In an office order Thursday, the NGO Affairs Bureau, which oversees funds flowing to the non-profit sector, said the circular, issued on July 17, will stand invalid.
"… This is to inform you that the NGO Affairs Bureau-issued circular dated July 17, 2007 will be considered cancelled until further notice," reads the order, a copy of which has been made available to the FE.
A strong debate raged over regulations restricting the foreign fund utilisation, with NGOs, development practitioners and experts fearing the step would slow down donors' assistance to the NGO sector, thereby undermining the efforts to develop both "human" and "social" infrastructure.
The Federation of NGOs in Bangladesh (FNB), an apex body of the non-profit industry, has welcomed the government decision, saying it would help further bolster government-NGO relations.
Signed by Humayun Kabir, an assistant director of the bureau, copies of the office order was sent, among others, to principal secretary to the Chief Adviser's Office (CAO), director general of the NGO Bureau and the FNB.
In its recent circular, the bureau, a government agency under the CAO, had asked development organisations to spend 50 per cent of their foreign funds on "visible" development such as construction of roads, bridges, culverts, schools and hospitals.
It also tasked the NGO Bureau and the Department of Social Welfare with the responsibility of keeping a close eye on "invisible" activities by NGOs, notably trainings and awareness campaigns.
The sources said the withdrawal of the circular means that non-profit groups involved in development activities would be able to run their ongoing projects without complying with the regulations set out in the July 17 circular.
Talking to the FE, FNB president Muhammad Ibrahim said Thursday the bureau realised its "arbitrary" decision and faulty approach.
"It (bureau) has understood that the circular has been prepared hastily and it is not based on ground reality. Even they realised our arguments," the FNB chief said in his instant reaction.
"We welcome the authority for actively considering our request to give a second thought to its decision," Ibrahim added.
As part of its lobbying, a delegation of FNB led by Ibrahim Wednesday had an exclusive parley with the bureau chief, preceded by behind-the-scene consultations.
Akbar Ali Khan, a former caretaker adviser, also hailed the authority's move to withdraw the circular, saying the government should play the role of facilitator to allow the non-profit sector serve the impoverished segment of the society.
Khan, however, underscored the need for transparency and accountability on the part of the NGOs.
An estimated 5000 local and foreign NGOs are operating in Bangladesh, of which more than 2000 are registered with the NGO bureau. Another 45000 "dubious" NGOs are accredited by the Social Welfare Department.
Bangladesh is praised by the international community for having a vibrant non-government sector, but non-transparency and some high-profile scandals have underlined the rigorous monitoring and reporting system, development experts say.
The caretaker administration has withdrawn the much-debated circular issued to restrict foreign aid use by non-government organisations (NGOs) in the wake of intensified lobbying from the development community.
In an office order Thursday, the NGO Affairs Bureau, which oversees funds flowing to the non-profit sector, said the circular, issued on July 17, will stand invalid.
"… This is to inform you that the NGO Affairs Bureau-issued circular dated July 17, 2007 will be considered cancelled until further notice," reads the order, a copy of which has been made available to the FE.
A strong debate raged over regulations restricting the foreign fund utilisation, with NGOs, development practitioners and experts fearing the step would slow down donors' assistance to the NGO sector, thereby undermining the efforts to develop both "human" and "social" infrastructure.
The Federation of NGOs in Bangladesh (FNB), an apex body of the non-profit industry, has welcomed the government decision, saying it would help further bolster government-NGO relations.
Signed by Humayun Kabir, an assistant director of the bureau, copies of the office order was sent, among others, to principal secretary to the Chief Adviser's Office (CAO), director general of the NGO Bureau and the FNB.
In its recent circular, the bureau, a government agency under the CAO, had asked development organisations to spend 50 per cent of their foreign funds on "visible" development such as construction of roads, bridges, culverts, schools and hospitals.
It also tasked the NGO Bureau and the Department of Social Welfare with the responsibility of keeping a close eye on "invisible" activities by NGOs, notably trainings and awareness campaigns.
The sources said the withdrawal of the circular means that non-profit groups involved in development activities would be able to run their ongoing projects without complying with the regulations set out in the July 17 circular.
Talking to the FE, FNB president Muhammad Ibrahim said Thursday the bureau realised its "arbitrary" decision and faulty approach.
"It (bureau) has understood that the circular has been prepared hastily and it is not based on ground reality. Even they realised our arguments," the FNB chief said in his instant reaction.
"We welcome the authority for actively considering our request to give a second thought to its decision," Ibrahim added.
As part of its lobbying, a delegation of FNB led by Ibrahim Wednesday had an exclusive parley with the bureau chief, preceded by behind-the-scene consultations.
Akbar Ali Khan, a former caretaker adviser, also hailed the authority's move to withdraw the circular, saying the government should play the role of facilitator to allow the non-profit sector serve the impoverished segment of the society.
Khan, however, underscored the need for transparency and accountability on the part of the NGOs.
An estimated 5000 local and foreign NGOs are operating in Bangladesh, of which more than 2000 are registered with the NGO bureau. Another 45000 "dubious" NGOs are accredited by the Social Welfare Department.
Bangladesh is praised by the international community for having a vibrant non-government sector, but non-transparency and some high-profile scandals have underlined the rigorous monitoring and reporting system, development experts say.