NGOs vulnerable to risk of terror financing: Govt


PTI | Mar 19, 2014, 07.11 PM IST
http://timesofindia.indiatimes.com/india/NGOs-vulnerable-to-risk-of-terror-financing-Govt/articleshow/32304400.cms

NGOs vulnerable to risk of terror financing: Govt

A total of 43,527 NGOs were registered under the Foreign Contribution (Regulation) Act upto March 31, 2012.

NGO

NEW DELHI: With voluntary organizations receiving more than Rs 11,500 crore of foreign funds annually, the Union home ministry has warned that the NGOs in the country were vulnerable to risks of money laundering and terror financing.

In its latest annual report on receipt and utilization of foreign contribution by voluntary associations, the home ministry said since the NGOs work independently outside the government, it is expected that they should be self- regulating and law abiding.

One of the objectives of the national policy on the voluntary sector is to “encourage NGOs to adopt transparent and accountable system of governance and management”.

“While it is not proper to make sweeping generalizations, it is necessary to note that the NGO sector in India is vulnerable to the risks of money laundering and terrorist financing,” the report said.

In his foreword, Union home secretary Anil Goswami said the general policy of the government is not to encourage soliciting of foreign contribution and the endeavour of the ministry has been to bring in transparency and accountability in the operation of the Foreign Contribution (Regulation) Act while ensuring national security.

Interestingly, the returns have not been received from nearly 19,000 organizations for which appropriate action has been taken by the home ministry for non-compliance of their statutory obligations.

A total of 43,527 NGOs were registered under the Foreign Contribution (Regulation) Act upto March 31, 2012.

Amongst the purposes for which foreign contribution was received and utilized are: rural development (Rs 945.77 crore), welfare of children (Rs 929.22 crore), construction and maintenance of school/college (Rs 824.11 crore) and research (Rs 539.14 crore).

The figures have been captured from the amounts indicated under various standard heads of utilization prescribed in the annual returns.

Further, some NGOs, which have reported receipt and utilization of foreign contribution, have not classified utilization appropriately under the respective standard heads and, therefore, such amount has been shown under the miscellaneous head.

“Thus, these figures may not accurately reflect the utilization of foreign contribution under the specific standard heads. However, they do represent a statistical trend,” the home ministry report said.

During the year 2011-12, 22,702 NGOs reported receipt of foreign contribution amounting to Rs 11,546.29 crore. Among the NGOs, which have reported receipt of foreign contribution, the World Vision of India, Chennai, received the highest amount of foreign contribution (Rs 233.38 crore).

Other NGOs which have received sizeable foreign contribution are the Believers Church India Pathanamthitta, Kerala (Rs 190 crore), the Rural Development Trust, Ananthapur, Andhra Pradesh (Rs 144.39 crore), the Indian Society Of Church Of Jesus Christ Of Latter Day Saints, Delhi (Rs 130.77 crore) and Public Health Foundation Of India, Delhi (Rs 130.31 crore).

The list of foreign donors is headed by the Compassion International, USA (Rs 99.20 crore) followed by the HCL Holdings Pvt Ltd, Mauritius (Rs 69.98 crore), the Action Aid, UK (Rs 62.66 crore), Population Service International, USA (Rs 61.34 crore) and the Bill and Melinda Gates Foundation, USA (Rs 48.91 crore).

The five major donor countries are USA (Rs 3838.23), UK (Rs 1219.02 crore), Germany (Rs 1096.01 crore), Italy (Rs 528.88 crore) and the Netherlands (Rs 418.37 crore).
_________________________________________________
Only 2% NGOs registered with govt

PTI | Mar 23, 2014, 09.42 AM IST
http://timesofindia.indiatimes.com/india/Only-2-NGOs-registered-with-govt/articleshow/32532804.cms

NEW DELHI: Despite voluntary organizations receiving over Rs 11,500 crore of foreign funds annually, only two per cent of the 20 lakh odd NGOs operating in the country have been registered, raising eyebrows in the home ministry.

According to a home ministry report, although there is no centralized database on the number of NGOs in the country and the quantum of finance involved in their operations, unofficial figures indicate that there are over 20 lakh NGOs registered under Societies’ Registration Act, Trust Act etc.

However, the number of NGOs registered under Foreign Contribution Regulation Act would be less than 2 per cent of the total number of NGOs.

“Though, the number of associations reporting receipt and utilization of foreign contribution is increasing; yet, it is a matter of concern that a large number of registered associations still do not submit their statutory annual returns mandated by the law,” the latest Home Ministry report on receipt and utilization of foreign contribution by voluntary associations said.

A total of 43,527 NGOs were registered under the Foreign Contribution (Regulation) Act up to March 31, 2012. During the year 2011-12, a total of 22,702 NGOs reported receipt of foreign contribution amounting to Rs 11,546.29 crore.

Altogether 9,509 NGOs have reported ‘Nil’ receipt of foreign contribution while many have not filed their returns.

Among all states and Union Territories, Delhi received highest amount of foreign contributions in 2011-12.

While Rs 2285.75 crore of foreign contribution has been received by 1482 NGOs in the national capital, 3341 NGOs in Tamil Nadu received Rs 1704.76 crore, 2527 NGOs in Andhra Pradesh received Rs 1258.52 crore and 2056 voluntary organizations in Maharashtra received Rs 1107.39 crore.

The five major donor countries are the US (Rs 3838.23 crore), the UK (Rs 1219.02 crore), Germany (Rs 1096.01 crore), Italy (Rs 528.88 crore) and the Netherlands (Rs 418.37 crore).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s