IN a bid to fortify public trust in charitable organisations and non-governmental entities (NGOs), the Consumers’ Association of Penang (CAP) has intensified its push for the government to expedite the creation of a dedicated Malaysian Charities Commission through legislation.
CAP president Mohideen Abdul Kader underscored the necessity of this action, emphasising its pivotal role in rebuilding confidence among donors while mitigating the risks associated with fraudulent practices or inefficient operations within the charitable sector.
Speaking on the matter, Mohideen highlighted the absence of a comprehensive statute in Malaysia regulating NGOs, apart from provisions concerning charities and charitable trusts as outlined in the Ninth Schedule of the Federal Constitution.
However, he noted that this schedule primarily addresses Islamic charities under the state’s jurisdiction, lacking provisions for their effective administration.
“We call for the state administration to provide for an oversight body for Islamic charities.
“Over the years, numerous requests have been made to the public for funds to build mosques, tahfiz institutions and various other charitable causes.
“Ensuring transparency and authenticity in fundraising is crucial to maintaining trust within the community and guaranteeing that donations are utilised for their intended purpose.
“Implementing mechanisms for verification can play a vital role in achieving these objectives,” Mohideen asserted, pointing out the need for transparency and authenticity in fundraising efforts to uphold community trust and ensure donations are utilised for their intended purposes.
He noted the imperative for Malaysia to enact legislation covering various aspects including:
- the registration of charities;
- the administration and governance of charities;
- the regulation of charities and institutions of public character;
- oversight of fundraising activities associated with charities and other institutions, including the conduct of fundraising appeals, and related matters; and
- establishing such legislation would provide a structured framework for the operation and oversight of NGOs, ensuring accountability, transparency, and effective management of charitable endeavours and public institutions.
Moreover, Mohideen stressed the importance of overseeing fundraising activities to ensure compliance with prescribed guidelines and standards.
“Additionally, it oversees fundraising activities, ensuring they adhere to prescribed guidelines and standards.
“Besides overseeing the operations of charities, this statute needs to be empowered to disqualify individuals convicted of offences involving dishonesty or deception from holding any position within the NGO.
“Furthermore, it should prohibit their involvement in other organisations to maintain the integrity and trustworthiness of the social financing sector,” he said.
Addressing concerns of potential donors, he proposed the establishment of a charities commission website listing registered charities along with their annual reports, thereby enhancing transparency and accountability.
“They can also read the annual reports of the charities. Such would ensure their accountability and transparency.”
Furthermore, the recent endorsement of this initiative by Centre to Combat Corruption and Cronyism (C4) CEO Pushpan Murugiah further underscores the urgency of establishing independent oversight bodies to prevent NGOs from being exploited for illicit activities such as money laundering. – April 25, 2024
Main photo credit: Yahoo News
