Non-Governmental Organisations (NGO) Regulatory Authority (Ngora) records show that 65 percent of local and international NGOs have failed to comply with the law to submit annual audited financial reports.
Based on financial statements submitted to Ngora in 2021, there are 307 NGOs out of the expected 715 that submitted their reports.
The 307 NGOs received grants amounting to K429 billion of which K412 billion was recorded in expenses.
Ngora estimates that all NGOs must have received more at least K1 trillion during the year under review.
Speaking on Tuesday during a meeting with the Parliamentary Committee on International Relations, Ngora chief executive officer Voice Mhone said it was saddening that there was low compliance.
Bandawe: We want the full list of errant NGOs
“We have to check what they are doing on the ground from their reports,” he said.
Council for NGOs in Malawi (Congoma) executive director Ronald Mtonga also expressed concern with the low rate of compliance.
“The purpose of the reports is basically to know what these NGOs are doing on the ground because at the end of the day we are supposed to maximise their impact,” he said.
According to an NGO Sector Report of 2021, between 2016 and 2021, compliance rate has remained below 45 percent with 2021 registering the highest 43 percent while 2016 registered a low five percent.
On why Congoma is not taking to task those not complying, Mtonga said they have continued to sensitise NGOs to comply with the law as non-reporting constitutes a serious offence which can lead to deregistration.
He said: “Our last resort is to have them deregistered but we have not gone that far yet. We only deregister when an NGO has misappropriated resources of the donor.
“But for reporting, we still engage them so that they come forward to report.”
Parliamentary committee chairperson Patrick Bandawe has since called on Congoma and Ngora to provide a full list of NGOs that are not submitting reports for their appreciation and action.
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