NGO Commissioner Kenneth Wain has accused the government of breaking the law by awarding unregistered organisations public funds as part of its overseas development aid programme.

It seems here in Malta we’re just not that interested in such accountability issues

But the government denied it, citing a clause within the NGO Act that allows such organisations to receive funds on ministerial approval.

Twenty-eight organisations and individuals were last week awarded funds out of Malta’s annual €363,000 overseas development aid budget. The grants, which range in size from €2,500 to €15,000, are for projects in developing countries completed within a 12-month period.

But 11 of the beneficiaries – seven organisations and four individuals – are not enrolled with the NGO Commissioner.

The Act clearly stipulates that to benefit from government funding, an organisation must be enrolled. It, however, provides for organisations to bypass this requirement if they obtain prior written consent of the relevant minister.

A ministry spokesman made reference to this exemption clause in rebutting Prof. Wain, citing a letter dated January 17 in which Family Minister Chris Said had granted the seven organisations express permission to receive public funds.

The exemption clause has allowed several Church-based organisations to continue to resist pressure to register as NGOs before receiving public funds.

Enrolled organisations must provide the NGO Commissioner with an annual report of their activities and a copy of their annual audited accounts, with this information then made publicly available.

Organisations not registered with the Commissioner have no such obligations, raising questions about financial accountability and the transparent use of taxpayers’ money.

“I’ve been alerting the Foreign Affairs Ministry to this problem for some time but nothing seems to have been done,” Prof. Wain said when contacted. “I’m not saying that the causes championed by these organisations and individuals are not worthwhile but there are transparency issues at stake.”

Most of the unregistered entities are Church-based organisations, reflecting a long-standing issue. Failure to resolve the impasse has resulted in such organisations being granted ministerial exemptions from the Voluntary Organisations Act on a case-by-case basis.

Giving individuals such grants was especially unwise, the Commissioner said. “Individuals are even less accountable than organisations are. If an individual wants to receive such grants, they should do it the proper way – establish a foundation and register as a charity.”

By continuing to grant unregistered organisations public funds, the government was providing no incentive for them to adhere to the law, the Commissioner pointed out.

Last October, The Times had revealed significant concerns about transparency levels within Malta’s overseas development aid programme.

While the programme was praised for its initiative, there were considerable accountability gaps in both the selection and project evaluation processes.

Although the ministry had insisted beneficiaries of grants were obliged to submit receipts and project evaluation reports, it had declined to make its own evaluations public, saying such reports were for internal consumption only.

At the time, the ministry had defended its policy of giving unregistered organisations public funds by saying such organisations were cleared for funding by other ministries.

The government’s approach to NGO funding flew in the face of European best practice, Prof Wain intimated.

“All across the continent we’re seeing greater scrutiny of NGOs, amid fears they might be used as fronts for money laundering and other such activities. But it seems here in Malta we’re just not that interested in such accountability issues.”

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