Exploiting the generosity of M’sians

I CALL them sidewalk hustlers.

And they are everywhere. Intrusive and in-your-face, they approach you at the pavement outside shops, in restaurants, in malls – ostensibly in the name of charity.

They cut across all races and creeds. And their “charities” may be different: for mosques, for temples, for NGOs, for old folks homes, for orphanages, etc. But their sole aim is to make you part with your money.

Malaysians are a generous lot, always willing to part with their money for charity. But too often, the funds do not go where they are intended.

This solicitation of funds does not only stop with a simple donation. Charities are now much more sophisticated than that. You can now have monthly salary deductions or even use e-payment for transfers direct to the charity of your choice.

Some years ago, The Star came out with an SOP to ensure only legitimate NGOs can collect money on behalf of charity cases. We did this because there were instances where money collected was misused for other purposes.

Don’t get me wrong; I am not labelling all charities as scams. There are genuine NGOs that need our support, monetary or otherwise. But the sheer number of charitable bodies begs the question: who monitors these charity organisations?

When donations are collected in the name of religion, this lack of monitoring is even more pronounced. After all, the major religions encourage the giving of alms.

The charity organisation, Aman Palestin, was in the news recently because its top guns were slapped with money laundering, criminal breach of trust and cheating charges involving RM39mil at the Sessions Court in Shah Alam.

The people who run the organisation have not been convicted. But this high-profile case has raised concerns over the potential abuse of public generosity.

No less a personage than the Prime Minister himself has said that funds raised should be scrutinised for transparency.

“There should be rules, for example, in collecting donations to build tahfiz schools. Otherwise, the money is used to repair houses instead,” he said on Feb 17.

Calls for a charities’ commission to ensure effective and transparent fundraising policies, especially those involving large-scale efforts, have now been gaining traction. This commission, modelled along the best practices available in other countries, will not only oversee such fundraising but provide a clear avenue for those whose noble intentions are abused.

Established charity regulators can be found in at least six countries: Singapore, the United Kingdom, the United States, Canada, Australia and New Zealand.

In the United Kingdom for instance, the commission is a non-ministerial government department accountable to the Home Secretary.

A group of academics from the International Islamic University Malaysia and Universiti Teknologi Mara recently presented a paper calling for the setting up of such a commission but modelled on Singapore’s regulatory framework for charitable organisations.

Prof Zati Illham, part of the four-person research team, said there is an absence of a comprehensive, unified charity legislation in this country, which has led to a prevalence of fraud and mismanagement.

This inadequate monitoring and auditing mechanisms points to the lack of a unified registration framework for charitable organisations.

The academic paper closely examines the Singaporean charity governance framework, which is noted for its robust charity regulation.

The Singapore Charities Act 1994 mandates a commissioner of charities, an authority that ensures legal compliance while promoting public trust and good governance.

“It is high time for Malaysia to have a legal framework to regulate charitable organisations. Regulatory reform in Malaysia’s charitable sector is essential to address the existing challenges and enhance the effectiveness and accountability of charitable organisations,” said Prof Zati.

However, she said these reforms face challenges, including jurisdictional complexities, stakeholder resistance and resource constraints.

Overcoming these challenges requires coordination, stakeholder engagement, resource allocation and a balanced approach to regulation.

By addressing these limitations and implementing the recommended reforms, Malaysia can cultivate a vibrant and well-regulated charitable sector that effectively serves the needs of its society.

In 2020, then Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail had said the establishment of a Malaysian charities commission would improve the efficiency and transparency of the social finance sector.

Malaysians are gullible; it is no surprise that a lot of us succumb to organisations or people that prey on our sympathy for the downtrodden.

A so-called Commissioner of Charities would encourage a culture of transparency and accountability. This in turn enables a safe giving environment, where everyone can do a part in creating a caring society.

For now, though, the Malaysian Anti-Corruption Commission has said it does not have to wait for a public complaint to commence investigations into any abuse of funds.

If the funds collected from the public are found to have been abused or misappropriated, it is a violation under the Penal Code for cheating or criminal breach of trust.