To meet FATF condition, 500 non-compliant NGOs dissolved in Karachi

According to a notification released by the provincial social welfare department, 5,896 NGOs have been de-registered.

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The provincial government of Sindh has dissolved another 500 non-governmental organizations for not following the rules and being inactive for years. After this, the total number of closed NGOs has risen to 6,000.

According to a notification released by the provincial social welfare department, 5,896 NGOs have been de-registered in three phases and more than 1,200 have been scrutinized.

“All these actions are in pursuance of the implementation of the recommendation No. 8 FATF [Financial Action Task Force] Plan,” an official in the provincial government said.

For effective and secure working, FATF has recommended scrutiny of nonprofits and NGOs. Pakistan was assigned by the FATF with 28 recommendations involving problems like terror financing and money laundering.

“Pursuant to Sindh cabinet decision, the 500 [more] voluntary social welfare agencies (NGOs) stand dissolved forthwith under Section 10 of the Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961’’, the notification read.

Notices were published in newspapers, requiring all NGOs, registered under the abovementioned ordinance, to provide their annual audit reports, progress reports, get renewal certificates and election reports.

“The registration authorities observed that majority of these NGOs or NPOs [non-profit organizations] are reportedly inactive, untraceable and non-responsive,” the notification said.

Zero response:

It also said that despite the publication of notices in newspapers, there was zero response from inactive organizations.

“There are reasons to believe that 500 registered agencies have acted in contravention of their own constitutions, provisions of the ordinance and the rules made under.”

This issue was put in front of the Sindh Cabinet during its 3rd Aug 2019 meeting, in which it was decided to delegate its powers to the social welfare secretary to cancel or dissolve NGOs/NPOs that did not act according to their constitutions and the provisions of the ordinance and rules.

In the first phase, 4,396 NGOs were dissolved. 188 of these were in Hyderabad district, 248 in Larkana, 59 in Tharparkar, 236 in Malir, 328 in Korangi, 43 in Umerkot, 211 in Badin districts, 101 in Mirpurkhas and 272 in Ghotki.

Another 1,000 organizations were dissolved in the second phase before the recent cancellation of the registration of an additional 500 NPOs (Non-Profit Organizations). 400 of these 500 organizations were in Karachi’s Central district, while the remaining 100 were in South district.

The department was currently in process of scrutinizing details of another 1,200 NGOs for the same reasons.

“We are scrutinizing the details of another 1,200 NGOs and a decision will be made about their fate soon,” said a senior official.

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