PETALING JAYA: There needs to be measures in place to strengthen regulations, oversight and specific legislation, among others, to prevent future leakages involving public funds, says Tan Sri Lee Lam Thye.
The social activist and Integrity Institute member said the ongoing investigation by the Malaysian Anti-Corruption Commission (MACC) into the alleged misappropriation of approximately RM230mil involving a non-governmental organisation (NGO) was troubling as it involved public funds.
"Incidents of this nature not only tarnish the image of NGOs as a whole but also significantly undermine public confidence in charitable giving.
"If such issues are not addressed decisively and transparently, it may discourage the public from contributing to genuine humanitarian efforts, ultimately affecting the most vulnerable groups in society," said Lee in a statement on Saturday (April 25).
Lee proposed several measures and mechanisms for the government to look into in combating such abuses, including strengthening regulations, oversight, enhancing transparency and accountability.
"The government should introduce stricter guidelines governing the collection, management and utilisation of public donations by NGOs, supported by robust and continuous monitoring mechanisms.
"All NGOs that raise public funds must be required to produce regularly audited financial statements and make them accessible to the public to ensure full transparency."
He also said that establishing a dedicated regulatory framework and introducing specific legislation are also crucial.
"Consideration should be given to establishing a dedicated regulatory body, or strengthening existing institutions, to oversee NGO activities, particularly in relation to public fundraising.
"It may also be timely to review and enact specific laws to regulate NGO operations, especially concerning the collection and use of public funds, to safeguard the interests of donors and beneficiaries alike."
At the same time, firm action against offenders can prove to be an effective deterrent.
"Any individual or organisation found guilty of misappropriating public funds must face firm legal action as a deterrent and to uphold justice."
Lee said the abuse of public funds erodes public trust and is a grave injustice to beneficiaries.
"This issue is fundamentally about trust. Donations made by the public are a reflection of their confidence in the integrity and mission of NGOs. Any breach of this trust is not only a betrayal of donors but also a grave injustice to the intended beneficiaries.
"At the same time, we must not allow the misconduct of a few 'bad apples' to undermine the credibility of the many NGOs that operate with integrity and genuine commitment. Meaningful reforms are therefore essential to ensure that the NGO sector remains trusted, respected, and effective in serving society."
