New rules won't affect NGOs in running their ongoing projects
Thursday, 26 July 2007
A Z M Anas
The new regulations to change the way the non-government organisations (NGOs) spend the foreign funds will not have "immediate" effect on development sector.
The non-profit NGOs involved in development activities will be allowed to run their ongoing projects without setting aside half the external aid for the infrastructural development, the sources said.
The NGO Affairs Bureau, which oversees aid flows to NGOs, recently issued a circular asking the non-profit development-oriented organisations to spend 50 per cent of their foreign funds on visible development such as construction of roads, bridges, culverts and schools.
"There'll be no immediate effect (of the circular) … We'll be able to run our ongoing projects as usual," president of the Federation of NGOs in Bangladesh (FNB) Muhammad Ibrahim told the FE after a meeting with the director general of the bureau Wednesday.
"The assurance has assuaged our worry that the fresh rules are applicable to the ongoing projects and programmes," the FNB chief said.
A delegation of FNB led by its president met with the bureau officials to explain the possible difficulties on the part of NGOs if the regulations are enforced.
Ibrahim hinted that the bureau might change the regulations it had framed to ensure transparency in external aid utilisation.
When contacted, the director general of NGO Bureau, however, declined to comment on the outcome of the meeting.
The circular came amid allegations of misappropriation of donors' funds by NGOs in the name of "invisible" activities such as motivational campaigns, trainings and public awareness programmes.
Critics say most NGOs lack good corporate governance, while almost all of them do not make public disclosure.
A World Bank report also recognised the problems, saying public misconceptions about the NGOs would be limited if there were a consistent set of disclosure requirements and greater information on their programmes, funding, and expenditures.
"We'll actively consider your case in future," Ibrahim quoted director general of the NGO as saying.
"All NGOs are not involved in construction-related activities. Each organisation has its own specialties. So the activities of all NGOs cannot be categorised as identical," FNB chief told the meeting.
Besides, the need for "invisible" activities such as trainings and campaigns cannot be ignored either, he added.
"Invisible activities have also tremendous impact. If an NGO provides legal aid to the impoverished segment of the society, it cannot be made visible, but it benefits the poor," another NGO leader told the meeting.
NGO leaders argued that water, sanitation and vaccination programmes were visible development activities, but campaigns, intended to educate the people about hygiene, could not be made visible. "The motivational campaigns are also required to bring about social change."
However, both sides agreed to strengthen the monitoring mechanism to identify the "dubious" activities of a section of NGOs and take legal action against the fly-by-night NGOs.
Bureau officials conceded that the apex government agency lacked adequate and efficient manpower for conducting effective surveillance.
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.
The new regulations to change the way the non-government organisations (NGOs) spend the foreign funds will not have "immediate" effect on development sector.
The non-profit NGOs involved in development activities will be allowed to run their ongoing projects without setting aside half the external aid for the infrastructural development, the sources said.
The NGO Affairs Bureau, which oversees aid flows to NGOs, recently issued a circular asking the non-profit development-oriented organisations to spend 50 per cent of their foreign funds on visible development such as construction of roads, bridges, culverts and schools.
"There'll be no immediate effect (of the circular) … We'll be able to run our ongoing projects as usual," president of the Federation of NGOs in Bangladesh (FNB) Muhammad Ibrahim told the FE after a meeting with the director general of the bureau Wednesday.
"The assurance has assuaged our worry that the fresh rules are applicable to the ongoing projects and programmes," the FNB chief said.
A delegation of FNB led by its president met with the bureau officials to explain the possible difficulties on the part of NGOs if the regulations are enforced.
Ibrahim hinted that the bureau might change the regulations it had framed to ensure transparency in external aid utilisation.
When contacted, the director general of NGO Bureau, however, declined to comment on the outcome of the meeting.
The circular came amid allegations of misappropriation of donors' funds by NGOs in the name of "invisible" activities such as motivational campaigns, trainings and public awareness programmes.
Critics say most NGOs lack good corporate governance, while almost all of them do not make public disclosure.
A World Bank report also recognised the problems, saying public misconceptions about the NGOs would be limited if there were a consistent set of disclosure requirements and greater information on their programmes, funding, and expenditures.
"We'll actively consider your case in future," Ibrahim quoted director general of the NGO as saying.
"All NGOs are not involved in construction-related activities. Each organisation has its own specialties. So the activities of all NGOs cannot be categorised as identical," FNB chief told the meeting.
Besides, the need for "invisible" activities such as trainings and campaigns cannot be ignored either, he added.
"Invisible activities have also tremendous impact. If an NGO provides legal aid to the impoverished segment of the society, it cannot be made visible, but it benefits the poor," another NGO leader told the meeting.
NGO leaders argued that water, sanitation and vaccination programmes were visible development activities, but campaigns, intended to educate the people about hygiene, could not be made visible. "The motivational campaigns are also required to bring about social change."
However, both sides agreed to strengthen the monitoring mechanism to identify the "dubious" activities of a section of NGOs and take legal action against the fly-by-night NGOs.
Bureau officials conceded that the apex government agency lacked adequate and efficient manpower for conducting effective surveillance.
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.