We are badly in need of a Charities Act

THE reported millions in monies from public donations intended for the poor and vulnerable being diverted by officials of an NGO for their own use have rightly been said to have gutted public trust.

It prompted Prime Minister Datuk Seri Anwar Ibrahim to call for more stringent regulations for charities that collect money from the public to prevent irregularities and misuse.

Anwar said the idea is timely as “there are currently more cases of organisations involved in irregularities and misuse of donation funds” (“PM: Stricter laws needed for NGO public donations”, The Star, April 25; online at bit.ly/ 4vT3vva).

There have been calls over the years by legal scholars for a single statute or legislation to govern charities while also highlighting the urgent need for a Commis-sioner of Charity (COC). A legislation, perhaps called the Charities Act, could empower the appointment of a COC, whose objectives could mirror those in the United Kingdom and Singapore, as follows:

> Maintain public trust and confidence in charities.

> Promote compliance by governing board members with legal obligations in managing their charities.

> Promote the effective use of charitable resources.

> Enhance the accountability of charities to donors, beneficiaries, and the general public.

The COC should have powers to institute inquiries into charities generally, or a particular charity, or a class of charities, either generally or for particular purposes. He or she could require any person to, among others, furnish accounts and statements in writing to answer any question at an inquiry and to furnish copies of official documents related to any matter in question at the inquiry.

When an inquiry has been instituted and the COC is satisfied that there is or has been any misconduct or mismanagement in the administration of a charity, the COC should be vested with further powers to do what is necessary to protect the assets of the charity.

The prime minister himself has said that it is time to have “stringent regulations” to govern charities. So let’s have a Charities Act.

HAFIZ HASSAN

Bukit Baru, Melaka