MHA wants real-time monitoring of NGOs’ foreign funds

According to MHA officials, some banks currently update their intranet systems with transaction details of these accounts only once in 24 hours.

AN effort to keep track of foreign funds received by NGOs on a “real-time basis”, the Ministry of Home Affairs (MHA) has asked the Reserve Bank of India to instruct all banks to link designated foreign contribution accounts to the MHA’s online database through the Core Banking Solutions system and Public Financial Management System.

According to MHA officials, some banks currently update their intranet systems with transaction details of these accounts only once in 24 hours. The MHA wants automatic updates on any activity regarding these accounts.

“Each beneficiary of foreign contribution has a designated account. We have observed that banks are pushing transaction data of these accounts only once in 24 hours and that too is updated manually. We have taken up the matter with the RBI, as we want to ensure that we can track all such transactions on a real-time basis through an automatic reflection in the Home Ministry’s own online system,” said a home ministry official.

“What we have proposed is that all designated accounts of those who receive foreign contributions are linked to the core banking system and the PFMS, which in turn, is linked to our own online database,” the official added.

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HCL Grants for Indian NGOs

HCL Grant Adds Two More Categories This Year
Health and Environment added besides Education
Call for Entries Open

Dear Change Leader,

As you would probably know, HCL Grant<http://hclgrant.hcltech.com/>, is an initiative by HCL Foundation, the corporate social responsibility arm of HCL Technologies<http://www.hcltech.com/>, for recognizing the rise of The Fifth Estate – the Non-Government Organizations (NGOs) which are formed and led by the citizens of this country. The Grant supports such change agents that reach out to marginalized, isolated and underdeveloped rural communities, and achieve sustainable socio-economic development.

In its first year, HCL Grant identified the best NGOs working in the area of rural education. From a pool of over 400 NGOs who applied for HCL Grant, six finalists were selected. Shri Pranab Mukherjee, the Honorable President of India, awarded the first HCL Grant Award of Rs.5 crore to Going to School, an NGO which currently covers over 1,300 schools and is impacting 1,50,000 children every week, with imperative life changing skills through their design-driven approach and learning material, in remote villages of Bihar.

For the second season of The Grant, HCL Foundation is inviting applications in the following three categories:

HEALTH:

Complements state efforts towards achievement of the Goals under National Health Mission and aims at supporting innovative, scalable models that would help the nation meet its targets faster than planned, in rural India. Gender transformative projects ranging from providing equitable & universal access to health for all, equitable access to clean drinking water, sanitation and hygiene facilities to all, prevention and elimination of water borne diseases, are all in the radar of HCL Grant. Given that the country needs substantial push on these health indicators, maternal, adolescent, child health and nutrition, eradication of communicable diseases, while reaching out to the most unreached and the underprivileged, is the primary focus of this Grant.

ENVIRONMENT:

Sustainable Environment conservation by supporting the National Missions under Climate Change, ranging from providing access to affordable, reliable, sustainable and modern energy to all, combatting climate change and its impact, protecting, restoring, and promoting sustainable use of terrestrial ecosystem, wetlands and other water bodies, combatting desertification, deforestation, land degradation and biodiversity loss, combatting pollution and promoting sustainable use of non-renewable resources, in the rural belt. The Grant focuses on direct action that leads to long term impact, achieved through lasting behavioural change towards conservation of environment, the flora and the fauna, as well as strengthening of the state systems towards a common goal of instilling cross sectoral shared responsibility towards protection of environment. Gender transformative and inclusive approaches will be a key consideration to make it to a winning idea.

EDUCATION:

The Grant is focused on Right to Education for All, by upscaling initiatives that strengthen Elementary, Secondary and Higher Education as well as Adult Literacy. The Grant essentially considers scalable and replicable education models that promote lifelong learning opportunities through skill development and confidence building, including digital literacy for all. Gender transformative education initiatives that lead to girl child and women empowerment through education are central to this Grant. The project should be designed around equitable, inclusive and quality education approach, thereby strengthening state systems and attaining sustainability in rural development.

In each of the above mentioned categories, an amount of INR 5 Crore will be awarded to the winning NGO, selected through a robust evaluation process consisting of  multiple levels of assessment, including field level due diligence. The winner will be announced in February 2017.

The last date for receiving applications for HCL Grant is September 15th, 2016. To know more and apply, please Click here. http://hclgrant.hcltech.com/#Apply

Best regards,

Nidhi Pundhir
Director CSR - Lead HCL Foundation

For queries, please write to hclgrant@hcl.com<mailto:hclgrant@hcl.com

Foreign fund flow comes under intelligence radar

KOZHIKODE: In the wake of warnings on massive arrival of foreign funds for anti-national activities, the Central intelligence has put the activities of various NGOs and organisations in Kerala under thorough scanner.

Surprisingly, there has been drastic increase in number of organisations in Kerala which have been found violating rules under Foreign Contributions Regulation Act (FCRA). As per a latest MHA report, FCRA licences of 527 organisations have been cancelled in Kerala in 2015 compared to two in 2014. In 2013, FCRA licences of one organisation was cancelled while 450 faced action for violation in 2012. Strict directions have been issued to all enforcement agencies concerned to keep track of the flow of funds to the NGOs and other charitable organisations in Kerala. According to officers with the intelligence, the Union Home Ministry has started to flag the organisations where they suspect diversion of funds for other purposes.

"The MHA has upped the surveillance and reports are filed. There is information that many organisations are using the subsidiary route for pumping in money. A lot of fund transfer is happening between parent organisation in a foreign country and its subsidiary opened in a different name in India," said a senior intelligence officer.All the organisations have been directed to keep their account books update. The MHA has been strict in taking action only in those cases where violations of FCRA have come to notice. It is learnt that a detailed probe is on to trace the funding activities of a few organisations in Kerala with regard to latest incident of 21 missing persons who reportedly left for Syria to join the IS. Officers said that they have collected details about a few bank accounts of the organisations. "Mostly, hard cash might have been used for the deals but we are put the accounts under surveillance," the officers added.

Source: http://www.newindianexpress.com/states/kerala/Foreign-fund-flow-comes-under-intelligence-radar/2016/07/28/article3550484.ece

NGOs got over Rs 50,000 cr from abroad in past three yrs: Govt

NEW DELHIi, July 26:

Over Rs 50,000 crore were received by the Non-Government Organisations (NGOs) in last three years, the Lok Sabha was told today.
The acceptance and utilisation of foreign contribution by association or institutions is regulated under the provisions of Foreign Contribution Regulation Act (FCRA), 2010.
“As on date, 33,091 NGOs are registered under the FCRA and the total funds received from abroad during the last three years and current year is Rs 50,944.54 crore,” Minister of State for Home Affairs Kiren Rijiju told Lok Sabha in a written reply.
The Government monitor funds received by the NGOs and also complaints that are received from various sources including security agencies in this regard, he said.
In 2014, penalty amounting to about Rs 60 lakh was imposed on 24 associations; Rs 80.11 lakh on 71 associations in 2015 and penalty of Rs 32.78 lakh on eight associations so far this year was imposed for compounding the offence for receipt and utilisation of foreign contribution without holding registration or prior permission under the FCRA, Rijiju said.
The notices were issued to around 21,000 associations in 2011 and to 10,343 NGOs in 2014 for not filing annual returns continuously for three years, the Minister said.
Consequently, registration of 4,138 NGOs was cancelled in 2012 and of 10,020 in March 2015 after issue of show cause notices to such associations and giving them adequate opportunity, he added. (PTI)

Source: http://www.dailyexcelsior.com/ngos-got-rs-50000-cr-abroad-past-three-yrs-govt-2/

NGOs Not Registered Under FCRA Slapped With Rs 1.5 Crore Penalties

NGOs have received over Rs 50,000 crore in the last three years, the Lok Sabha was informed. The acceptance and utilisation of foreign contribution by association or institutions is regulated under the provisions of Foreign Contribution Regulation Act (FCRA), 2010.

In a written reply to the Lok Sabha, Minister of State for Home Affairs Kiren Rijiju said that as on date, 33,091 NGOs are registered under the FCRA and the total funds received from abroad during the last three years and current year is Rs 50,944.54 crore.

He also said that funds received by the NGOs are monitored by the government, while complaints are also received from various sources including security agencies in this regard.

Penalties were also imposed for receipt and utilisation of foreign contribution without holding registration or prior permission under the FCRA. In 2014, penalty amounting to about Rs 60 lakh was imposed on 24 associations; Rs 80.11 lakh on 71 associations in 2015 and penalty of Rs 32.78 lakh on eight associations this year.

Notices were also issued to around 21,000 associations in 2011 and to 10,343 NGOs in 2014 for not filing annual returns continuously for three years, the minister pointed out.

4,138 NGOS saw their registration cancelled in 2012 and of 10,020 in March 2015 after issue of show cause notices to such associations and giving them adequate opportunity to reply, the minister said.

Source: http://www.cfo-india.in/article/2016/07/26/ngos-not-registered-under-fcra-slapped-rs-15-crore-penalties

Relief for NGOs as House Passes Lokpal & Lokayukta Amendment Bill

The government on Wednesday passed the Lokpal and Lokayukta amendment bill changing provisions which made it mandatory for senior management personnel working with NGOs to disclose their assets and liabilities.

In the process the bill brought relief to lakhs of public servants who were supposed to declare their assets by July 31.

The amendment also addressed its dispute with the Opposition making the "leader of the single largest party" part of the selection committee instead of the Leader of Opposition. With Congress having only 44 members in the present Lok Sabha, there is no Leader of Opposition.

Minister for personnel Dr Jitender singh said the amendments will now be scrutinized by a parliamentary standing committee which will give its report before next session of Parliament. What this would mean is that public servants will get relief from declaring their assets till the standing committee gives its report.

The original Lokpal act of 2013 had brought NGOs within the purview of Lokpal by defining Directors and Office Bearers of NGOs as public servant and made it mandatory for them to make their assets public.

Section 44 of the original act said, "any person who is or has been a director, manager, secretary or officer of… [a] society or association of persons or trust (whether registered under any law for the time being in force or not), by whatever name called, wholly or partly financed by the government and the annual income of which exceeds such amount as the central government may, by notification, specify.”

On June 20th this year government through a notification brought all NGOs who receive FCRA of 10 lakh or Central government grant of one crore.

The NGO sector was worried after this notification as they were asked to file detail of their assets, debts and other liabilities by July 31.

Being defined as "public servant" meant the NGO office bearer were also facing the prospect of being prosecuted under the prevention of corruption act.

The Lokpal amendment bill was not listed in Wednesday's list of business and was suddenly introduced by Dr. Jitender Singh much to the objection of the Opposition members who questioned the urgency.

Assuring opposing MPs like CPI(M)'s Mohd Salim and TMC's Kalyan Banerjee the minister said, 'Section 44 has certainly created urgency to get the amendments passed before July 31 as the government cannot do it on its own.'

The Narendra Modi government has prosecuted many including NGOs like Greenpeace and Teesta Setalvad's Sabrang trust for FCRA violation.

But the decision to take NGOs out of the purview of Lokpal is bound to be welcomed by this sector.

Source: http://www.news18.com/news/india/relief-for-ngos-as-centre-passes-lokpal-lokayukta-amendment-bill-1274614.html

Targeting NGOs

Overregulation will stifle the voluntary sector. The lokpal act provisions need a relook.

The Lokpal and Lokayukta Act, 2013, legislated by the then UPA government overzealously included senior management personnel working with non-governmental organisations (NGOs) in the definition of “public servants” requiring them to disclose their assets and liabilities if their NGO receive foreign donations and funds from the Union government. It didn’t stop there. The personnel’s spouse and dependent children too were required to furnish such details.

These persons, now that they are public servants, could be prosecuted under the Prevention of Corruption Act for non-compliance. The act kicked in following a June 24 notification by the government, and requires disclosures by July 31. This is perhaps the worst case of a public policy swinging between extremes when legislated in a hurry and in an environment of distrust and anger. A perception of rising corruption during the UPA’s second term and the consequent high-decibel protests led by Anna Hazare forced the government to legislate the lokpal act.

Unfortunately, in a bid to be seen as cracking down on those who swindle public money or resources, it introduced provisions which are draconian.

A clear and irreversible course being followed by India since the beginning of economic reforms in 1991 has been to do away with the tyranny of red tape and inspector raj. In as much, the direction has also been to encourage enterprises and individuals alike to invest their precious and finite resources — time and money — in areas including health and education where the government has not met the needs of the country’s poor. Nobody disputes the need for transparency and adequate disclosure by organisations that are recipients of public money. The lokpal act brings under its purview any NGO wholly or partly funded by the Union government to the extent of Rs one crore or more and has received Rs 10 lakh or more in foreign donations. But the provisions of the act stretch in a manner that not only intrude into the privacy of individuals, but also provides the leeway for officials to harass people. Overregulation may not only stifle the voluntary sector but also force volunteers and donors to stay away. Many trustees, directors and professional managers in NGOs, who could be philanthropists, experts and eminent persons from different walks of life, wouldn’t want their assets and liabilities loosely posted on government websites.

A group of parliamentarians cutting across party lines met the prime minister on Monday, who has promised an extension of the July 31 deadline. But the prime minister must also ensure that the lokpal act does not end up smothering a vibrant civil society when the government sets out to monitor and regulate NGOs that receive huge funds.

What to speak of (over) regulations the whole gamut of N G Os should be disbanded in India forthwith.
This counter productive and un-accountable sector has become so vast, diverse, mischievious,indulgent, self serving and anti Government that it is beyond the capacity of any authority to control their activity.this activity drew oxygen when late Narasimha Rao as prime minister called upon on N G Os to forward the nation's progress. However it so happened that there has been negligible /sustainable growth in most sectors under N G O activity for decades .The only positive thing happened that these organizations got a chance to fatten their purses with Indian nd foreign funds,threw crumbs at the vast un/under engaged youth, decided their own agenda and field of activity as per their choice and convenience.
They neither worked with the real conditions prevailing nor have any proof of improvement after years of so called social work except doctored reports for donor's consumption and untrue certificates from accounts/audit.
Most have been alleged to have engaged in un-healthy activities like conversions, anti social teachings, working against social norms and traditions thus putting the delicate social balance in jeopardy.
It will be worthwhile to note if any state /central govt has any statistics of real development through decades long activity by literally thousands of N G Os in all states.
If at all the Govt/s wish to still engage the services of this sector then all domestic and foreign funds must be received/disbursed for specified time/result oriented development of deserving areas on outsourcing basis with strict monitoring by Govt departments.Even Govt functioning with its in built checks often goes haywire, how unaccountable people/organizations can be entrusted with un accounted funds for national development

Source: http://indianexpress.com/article/opinion/editorials/targeting-ngos-lokpal-lokayukta-act-2937438/

NGOs got over Rs 50,000 crore from abroad since 2013

NGOs have received around Rs 51,000 crore from abroad in the past three-and-a-half years, the government informed the Lok Sabha on Tuesday.

The government has also recovered Rs 1.64 crore as penalty from NGOs since 2014 after they were found to be violating the Foreign Contribution Regulation Act (FCRA) 2010.

“As on date, 33,091 Non-Governmental Organisations (NGOs) are registered under the Foreign Contribution Regulations Act (FCRA) and the total funds received from abroad during the last three years and current year is Rs.50944.54 crore,” Minister of State for Home Kiren Rijiju said in a written reply.

In 2014, the penalty collected by the government was Rs 51.99 lakh from 24 NGOs, while it rose sharply to Rs 80.11 lakh from 71 organisations the next year. This year so far, Rs 32.78 lakh has been recovered from eight NGOS for compounding the offence for receipt and utilisation of foreign contribution without obtaining registration or prior permission under the FCRA.

“The government monitors funds received by the NGOs and also complaints and inputs that are received from various sources, including security agencies in this regard. In cases of violation is taken after conducting inspection of the records and accounts giving due opportunity to the concerned association/NGO,” Rijiju said. Notices were issued to around 21,000 associations in 2011 and to 10,343 NGOs in 2014 for not filing annual returns continuously for three years. Registration of 4,138 NGOs was cancelled in 2012 and of 10,020 in March 2015 after the issue of show cause notices to such associations and giving them adequate opportunity, he said

Source: http://www.deccanherald.com/content/560398/ngos-got-over-rs-50000.html