Posted on 2nd Oct 2024 09:01:55 PM Public Administration
INTRODUCTION AND DEFINITION
NGO is not a legal term, but it is used widely as such because it is the term almost universally used by the World Bank, The United Nations and others national or inclinational bodies when referring to non-governmental, not-for profit entities that are engaged in development or advocacy activities (ICNL, 1997).
Looking of the field more broadly, there is no agreed terminology for describing the NGO sectors. The French refer to the economic society, the British to public Charities, the Japanese to Koeki Hojin, and Germans use the term Vereine, which simply means abolitions (Salamon, 1997). But generally, NGO can be defined as:
“Non governmental organizations” (NGO) refers to an association, society, foundation, charitable trust, non-profit corporation, or other juridical person that is not regarded under the particular legal system as part of the governmental sector and that is not operated for profit viz., if any profits are earned, the are not and cannot be distributed as such. It does not include trade unions, political parties, profit distributed as such. It does not include trade unions, political parties, profit-distributing cooperatives, or churches (ICNL, 1997).
On the other hand, In the Asian Institution of Technology, the NGO workshop highlighted on various definitions of NGO. Definitions that were presented in that workshop are presented in the following:
“An organization that is flexible and democratic in its organization and attempts to serve the people without profit for itself.”
The term “NGO” can be defined as “A nonprofit, voluntary, service-oriented development oriented organization for the benefit of the poor.”
WHY PERFORM LAWS RELATING TO NGOS?
Governments have great power over NGOS through the lows they enact or administer. They can either help or hinder them through lows and regulations that they use to establish them, to direct their activities, to fax them, to allow them aces to funds (public, private and foreign) to require them to report, to audit them, to involve them, or refuse to involve them, in Government projects and policies. By paring Laws they reprise NGOS or they can encourage them; they can also have great influence in molding the kinds of NGOS they want for example, some governments such as those in Ethiopla and Indonesia, encourage service provisions by NGOS but discourage advocacy (Salamon, 1997)
Laws and regulatory systems can also have a strong influence on NGOS by default, such as if the laws are badly drafted or are laxly or arbitrarily enforced. Repressive laws can suffocate the NGO sector; but if NGO lows or their enforcement are inadequate, misconduct and abut may become rife and the NGO sectors as a whole may be brought into disrepute (ICNL, 1997) There are many reasons why countries around the world should want to have laws that assure the existence of a strong, vigorous, and independent NGO sector.
There are at least six reasons why any society should consider adopting laws that support a vigorous and independent NGO sector: (a) implementing the freedoms of association and speech, (b) encouraging pluralism and tolerance (c) Promoting social stability and the rule of law, (d) efficiency, (e) Public sector market failure, and (f0 providing support for a market economy (ICNL, 1997) The first three are social or political, while the latter three are economic.
THE LEGAL AND REGULATORY FRAMEWORK FOR THE NGOS IN BANGLADESH
In order to direct the operations and the funding arrangements of the NGOs working in Bangladesh, the Government of Bangladesh applies a range of statutory and administrative regulations towards the NGOs. A detailed structure exists for NGO registration prior review, project approval procedures and utilization of foreign funds by the NGOs.
Such regularity framework is necessary with a view to ensuring the proper utilization of foreign funding of the NGO sector. One of the main reasons for this regulatory framework is the Government’s concern to monitor the flow of foreign funds going to the NGOs. Besides to keep the macroeconomic development in track, GOB has introduced the regulatory framework.
The present chapter highlights on the legislation that governs the NGOs working in Bangladesh. It also focuses on the circumstances of the laws and attempts to assess the relevance of the legal framework to the present-day situation. The present chapter also focuses on Government NGO Consultative Council, its objectives, the establishment of NGO Affairs Bureau and its functional responsibilities.
ELEMENTS OF THE LEGAL FRAMEWORK
In Bangladesh, the legal framework for the NGOs has two parts: (1) Laws under which the NGOs are incorporated and given a legal identity; and (2) Laws regulating the relationship of the NGOs with GOB. It is not mandatory for an NGO to register under any of these was so long as. They don’t seek a legal identity, or solicit any assistance from the Government. Naturally most NGOs desire and seek a legal identity.
1. Laws for incorporation:
The following laws provide a framework for the NGOs to exist under a legal identity with a recognized governance structure. Development NGOs are registered under these laws:
The Societies Registration Act. 1861: The administrators of the Indian Empire introduced this act. The law sets out ways in which a voluntary organization should be set up, managed, and maintain control of its accounts. Some of the oldest NGOs in Bangladesh are registered under this act by the Registrar of Societies within the Ministry of Commerce. The act is still valid in Bangladesh, although many NGOs report that the Registrar has discontinued registering of NGOs under it, pending a review of the whole legal environment of the NGOs which was being undertaken by the Ministry of Commerce. The range of activities allowed to a society reflects the interests and charitable ethos of a Victorian ear in the 1860s and recent laws and regulations continue to borrow from this act.
The Trust Act. 1882: This law is created with a view to accommodation private trusts without disturbing or modifying the already existing Muslim and Hindu laws for religious trusts. It allowed for the creation of an organization where a person or persons had some property that the wanted to entrust to a second party to be used on behalf of a third party. This law is also valid in Bangladesh. This act is occasionally used by NGOs. It is administered by the Registrar to Trusts (a magistrate) who has the power to register deeds of trust, without involving any government ministries. The advantage of registering under the Thrust Act is that its provisions allow autonomy as long as the Trustees honor the terms and conditions of the Deed of Trust. Gonoshasthya Kendra-a very famous Bangladeshi NGO is registered under this act.
Cooperative Societies Act, 1925: This law was created specifically fro the specialized from of commercial entity. Some NGOs consider their operations as falling within this category, though it is not used by development NGOs.
The Companies Act, 1913 (amended in 1994): With a view to making a legal from and status available to private trading companies, this act was created. There are provisions for registering non-profit companies. Some NGOs (such ad Ubining) have registered under this act. PKSF and Horticulture for Export (HORTEX) are the recent examples of private foundations, which are founded under this act. This act provides a very strong legal identity. There are clear directives for annual report and annual account to be produced. The Registrar of Joint Stock Companies under the Ministry of Commerce is the registration authority.
The above acts enable organizations to be set up with a management structure and a legal status.
2. Laws and Ordinances for Regulating Association with the Government:
The following laws and ordinances have been introduced to compel the NGOs to register with the government agencies, irrespective of their legal status. The following lows and ordinances have specific bearings on the issues of GO-NGO relationship.
The Voluntary Social Welfare Agencies (Regulation and Control) (VSW) Ordinance, 1961: This Ordinance was promulgated by the then Pakistan’s martial law regime with a view to controlling the NGOs through mandatory registration. The ordinance required that every organization that sought to render voluntary welfare services under specific areas must be registered with the then Pakistan Social Welfare Department. A large number of NGOs are registered under this ordinance. The registration procedures under this ordinance are simple. The 1961 ordinance allows the Government to interfere with the governance structure of the NGOs. As the registration body, the Department of Social Welfare (DSW) is authorized to suspend the approval of DSW the governing body of a NGO cannot dissolve the NGO.
The Foreign Donation (Voluntary Activities Regulation (FDR) Ordinance 1978 (amended in 1982: After the war of liberation, a large number of NGOs were emerged with view to offering relief and reconstruction assistance in Bangladesh. Many local NGOs have received forging donation for undertaking their activities. Besides a number of foreign NGOs have been working in Bangladesh. The purpose of this ordinance is to regulate the receipts and expenditure of foreign donations for voluntary activities.
‘Foreign Donation’ means a donation, contribution or grant of any kind made for any voluntary activity in Bangladesh by any foreign government or organization or a citizen of a foreign state includes, any donation made for any voluntary activity in Bangladesh by a Bangladeshi citizen living of working abroad.
The Foreign Contribution (Regulation) Ordinance, 1982, Ordinance No. XXX1 of 1982: On 24th March 1982, the then Chief Martial Law Administrator promulgated this ordinance to regulate receipt of foreign contributions. “Foreign Contribution” according to the ordinance meant any donation, grant or assistance, whether in cash or kind. The rules pertaining to this ordinance required NGOs to seek prior government approval each time they received a foreign contribution.
ESTABLISHMENT OF THE GOVERNMENT NGO CONSULTATIVE COUNCIL
In order to provide a forum for open dialogue between the Government and the NGOs, GOB has established the Government NGO Consultative Council (GNCC) by a Gazette notification, dated 17th October, 1996. The objectives of establishing the GNCC are:
1. To increase mutual understanding and cooperation between GOB and the NGOs fro the overall development of the country.
2. To identify and discuss issues which impede GO-NGO cooperation and develop an improved policy and institutional environment for GO-NGO Cooperation.
3. To suggest modalities for greater involvement of NGOs is national development.
4. To propose measure to simplify and improve the regulatory system for creating an enabling environment fro governing NGO activities.
5. To suggest measures to strengthen the monitoring and evaluation capacity of the NGOAB partner NGOs with a view to ensuring accountability and transparency for development assistance funds.
Membership of the GNCC: The council has a maximum of 23 members, which include six representatives nominated by the government from concerned Ministries/Divisions and eight highest level appropriate NGO representatives nominated by the ADAB. The Chairman of the council is appointed by the government. The Director-General of the NGOAB is the ex-officio member-secretary to this council. The remaining seven positions are to be filled in according to the advice of the council. Representatives are appointed for two years and no individual can serve more than two consecutive terms.
REGULATORY INSTITUTION: THE NGO AFFAIRS BUREAU (NGOAB)
Gradually the NGOs expand their activities in Bangladesh. They play an important role in the context of national development. GOB also views the activity of the NGO as a useful contribution to the national development. GOB welcomes NGOs’ activities in various fields, where government activities are not adequate.
With a view to attaining optimal impacts, the NGO require collective coordination. Because only well-coordinated NGO activities could supplement and complement government’s development programs quite meaningfully. On behalf of GOB, the responsibility of coordination of NGO activities is assigned to the NGOAB.
Previously foreign NGOs and NGOs receiving foreign funds, working in Bangladesh had to apply to different government agencies for registration and various approval and permissions. Clearance from committees at various stages and inter-ministerial consultations often caused delays in processing their cases. Cumbersome bureaucratic procedures not only increased paper work for the NGOs, but also resulted in the loss of substantial funds due to delays in the process. The 1980s witnessed a huge backlog of projects pending government approval (World Bank, 1996). Due to inadequate manpower and lack of a central body in the past, GOB could not also monitor the NGO activities properly. As a result, activities of some NGOs resulted in wastage of resources and brought the NGO activity under criticism in general.
In order to streamline the procedure, to provide one-service to these NGOs and to achieve better coordination and effective use of resources, GOB has created a new attached department under the President’s secreatariat’s Public invison in May 1000 in the name of NGOAB. Now NGOAB is working under prime Minister’s secretariats. Since then the GOB has assigned NGOAB all responsibilities to coordinate NGOs under the 1987 Foreign Donation (Voluntary Activities) Regulation Ordinance and the 1982 foreign contribution (Regulation) ordinance. This bureau is headed by a Director General.
ROLE/FUNCTIONS OF NGOAB
The principal aim of NGOAB is to ensure quality performance of the NGO sector and its accountability to the state.
The NGOAB has been entrusted with the following responsibilities:
1. Administer laws relating to NGOs in Bangladesh.
2. Provide one-stop service to NGOs for registration and project processing:
3. Provide secretarial service to the advisory committee for NGO Affairs;
4. Approval of project submitted by the NGOs and release of funds;
5. Approve appointment and tenure of services of expatriate officials and consultants;
6. Review/examine/comments on the reports and statements submitted by NGOs;
7. Coordinate, monitor, inspect and evaluate NGO operations;
8. Identify and approve Chartered Accountants for auditing NGO accounts:
9. Collection of fees/service charges from the NGOs,
10. Cary out field level inspections of NGO income and expenditure;
11. Maintain liaison with the NGOs and donor agencies;
12. Examination/Disposal of reports on the functioning of NGOs;
13. Examine and take necessary action on the basis of reports on NGO programs;
14. Approve receipt of one-time contributions by NGOs;
15. Handle any other matter relating to NGOs;
A World Bank Report (1996) comments on the establishment of NGOAB that it has produced significant improvement from the past. Because NGOs. don’t have to pursue their cases with different government organizations any more. It enables the NGOs to obtain their registration clearance, approval and permission through a single agency of government within a specific time frame.
CRITICISM/ REASON FOR NOT FOLLOW THE LAWS
Actually the NGO administration not follow the rule. The over take the rule in many way. Some problem are:
To control the NGO’s of Bangladesh there are so many laws but there is no implementation. For example, there is no permission to take foreign aid without the permission of the state but different NGO take foreign aid directly.
By the Trust Act, 1882 many NGO misuse the wealth and use it on their own benefit.
Many voluntary NGO’s registrate under the act of cooperative societies Act. 1925. But the activity of NGO not fail under the law.
As the description of the current legal framework indicates, there is very little in the principal registration laws, which deals with internal governance and external accountability for NGO’s. This needs to be addressed in any legal reform effort. In addition, it is extremely important for NGOs to be required to use good accounting rules developed especially for them.
The NGOs are not follow the rule the government cancelled registration of 334 non-government organization (NGO’s) in the four months for this involvement in corruption, misuse of foreign funds and patronization of militancy.
The NGO Affair Bureau (NGOAB) launched stringent drive to clean up the sector and seized moveable and non-moveable property of these organizations, which were operating in the name of social welfare, charity and volunteerism.
The bureau cancelled the registration in April, May, June, July and August-2, after a series of probes into violation of rules and laws to run foreign funded project in the country.
An official at the NGOAB told the Daily star, “we could not give you detailed of the cause of canceling the NGO’s registration as the offences vary from organization to organization.”
Some NGO brought foreign fund showing a project which was really not being implemented in the grass roots level. They only ran some small-scale activities to attract donors. Shortage of manpower, lack of accountability of field Administration and underhand dealings between NGOAB and NGO executives as major reasons for misappropriation of funds
The current legal framework in Bangladesh meets neither international good practice standards not the needs to Bangladeshi NGOs in the 21st century. For example, the current legal framework does not:
· Permit easy, quick, non-discretionary establishment with full legal personality of membership or non-membership not for profit organization to engage in any lawful activity-
· Provide that a not for profit organization must be organized and operated primarily for not-for-profit purposes clearly forbid the distribution of income from a not-for-profit organization
· Assure the independence and accountability of boards of directors of not-for-profit organizations
· Require all not-for-profit organizations to have internal governance rules that allocate right, duties, and responsibility is a clear, reasonable, and flexible manner.
· Clarity that directors have fiduciary duties of due care and loyalty
· Establish clear rules that not-for-profit must follow for dealing with conflicts of interest
· Establish clear and consistent financial accounting stands for all not-for-profit organizations, which highs standards for public benefit organizations
· Provide adequate tax incentives for the not-for-profit sector.
It is time to engage in a serious law reform process that will update the current legal and fiscal framework for NGO in Bangladesh.
There are also some reason which are responsible for not implement the rule:
· Lack of skilled staff
· Delays, mistakes and political interference in the selection of NGOs
· Lack of co-operation between NGOs and BKB
· Inadequate economic margin for NGOs to continue their activities
RECOMMENDATIONS FOR OVERCOME THE SITUATION
In my opinion I think the following suggestion should be followed to maintain the legal framework.
a) NGO’s activity should be cleared
b) NGO’s should be responsible to the govt.
c) Law’s should be followed.
d) The current legal framework for NGOs in Bangladesh is outdated, contusing and in need of complete revision. Not only does it tend to focus attention and money on issues that are relatively unimportant the foreign funding of a few NGOs by legitimate multilateral and bilateral donors- it also does not impose high enough standards of accountability and transparency on the vast majority of NGOs that receive on forcing funds but that do affect the public interest with the apparent shift toward more domestic funding for Bangladesh NGOs, the current regulatory system seems improperly focused.
e) There are currently on provisions in law clearly dealing with the issue of political activities by NGOs. This needs to be remedied by adopting rules that clearly forbid public benefit NGOs from engaging in partisan political activities. On the other hard, the rules on political activities should also clearly permit PBOs to engage in a wide range of democratic development activities.
f) The effort to reform the current legal and fiscal framework for NGOs in Bangladesh should be undertaken by a law Reform Task Force. This task Force should be Comprised of NGO leaders, govt. officials from ministries with a strong interest in NGO activities, parliamentarians, lawyers and academics. It should be housed in a neutral secretariat and have a small staff.
g) As a part of the legal and fiscal reform efforts, the information technology capacity of government agencies charged with NGO oversight should be strengthened and modernized
h) The law reform process should closely tie info the process of vetting and developing the Bangladesh Enterprise Institute (BEI) standards for NGO Governance. Although the proposed standards are both too complex and too weal in enforcement powers, they represent a good start in developing good and enforceable standards for NGO internal governance.
CONCLUSION
The above discussion highlights the existing laws, ordinances, rules and regulations applicable to the NGO operations in Bangladesh. Many laws, acts had their origin in British colonial period. There are also some new acts, ordinances that are applied to the activities of the NGOs working in Bangladesh. These have created the legal and regulatory framework for the NGOs in this country. A sound legal and regulatory framework is very much essential for the NGO sector that ensures the accountability and transparency of the NGOs. With a view the coordinating the activities of the foreign funded NGOs, GOB established NGOAB. The government controls the activities of NGOs, which receive foreign donation through NGOAB. Besides, GOB has also established GNCC as a forum for open dialogue between GOB and NGOs. The GNCC works for increasing mutual understanding and cooperation between GOB and the NGOs.
Effectiveness of NGOAB has already being noted by NGOs in comparison with the days when the Planning Commission and other line agencies used to control, regulate and approve NGO activities. NGOAB as a ‘one-stop’ unit has indeed facilitated the program development and approval activities of the NGOs. Moreover, it has also strengthened the financial accountability of the NGOs that receive foreign support or donation.
REFERENCES
Salamon, L. (1997). “The International Guide to Nonprofit Law”, New York.
The International Center for Not for Profit Law (1997), Handbook on Good practices for Laws Relating to NGO: The World Bank Publication.
Sultan, T. (1990). “Partners in Rural Development: GO-NGO Collaboration,”
Begum, Afroza (2003), “Government-NGO Interface in Development Management”, Alt Development Publishing House, Dhaka.
Alan Fowler (1997). Striking a Balance, London. Earths can Publications Ltd.
Ahmad, Razia. S. (1983), “Finding the rural poor, Obstacles and realities”, University Pres Limited, Dhaka.
Momin, Sherila. (November 11, 2002). The Legal Framework of NGO enhancement, RD, 874.
Andrew, Clayton (1994). Governance, Democracy and Conditionality: what Role for NGOs? (ed) An INTRAC publication, GB
Holloway, Richard (1998). Supporting Citizens Initiatives, Bangladesh’s NGOs and Society, UPL, Dhaka
Rahman, Motiner (2010). “NGO and Development myth and reality”, AH Development publishing House, Dhaka.
ABBREVIATIONS
BKB - Bangladesh Krishi Bank
NGO - Non-Government Organization
ADB - Asian Development Bank
GO - Government Organization
GOB - Government of Bangladesh
OECD - Organization for Economic Co- operation and Development
WB - World Bank
NGOAB - Non- Governmental Organization Affairs Bureau
GNCC - Government NGO Consultative Council
BEI - Bangladesh Enterprise Institute
CONTENTS
Introduction and Definition
Why Perform Laws Relating to NGOS?
The Legal and Regulatory Framework for the NGOs in Bangladesh
Elements of the Legal Framework
Establishment of the Government NGO Consultative Council
Regulatory Institution: The NGO Affairs Bureau (NGOAB)
Role/Functions of NGOAB
Criticism/ reason for not follow the laws
Recommendations for overcome the situation
Conclusion
References
Assignment, Legal, Regulatory, Framework, Government, Consultative, Council, Role, Functions, Criticism, Perform, Laws, Definition, Abbreviations, NGOAB, NGOs, NGO, BKB, ADB, GO, GOB, OECD, WB, NGOAB, GNCC, BEI
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