|
Annex: Proposals for Reform
Over the past few years some NGOs have been concerned about the lack of any law or regulation governing their operation. This concern arose both from the bad image caused by some NGOs being mismanaged and by the desire to gain recognition and benefits from the State.
After the 1994 UNDP/PRODERE workshop mentioned above, where the NGOs agreed to propose a legal framework for a new relationship between government and NGOs, there was a long period of inactivity on this matter.
ANDA took on the responsibility for moving this matter forward, and by the end of 1997 a draft proposed law for regulating NGOs had been prepared. In March 1998 it is still being subjected to further consultation and fine-tuning A first workshop to share the proposed draft with other agencies was held under the auspices of UNHCR in late March, and a revised draft will be circulated to all NGOs soliciting their comments.
It is expected that by June 1998 it will be presented to the appropriate Ministry for presentation to Cabinet and thence to the National Assembly to be passed into law.
The main features of the proposed law are as follows:
The law is named as the Non-Government Organizations Act, and "Non-Government Organizations", or "NG0s" are defined as legal entities, constituted as such under any law of Belize, which contribute directly or indirectly to sustainable human development, are independent, not-for-profit and not serving the aims of members or individuals but of society generally or disadvantaged sectors of society in particular, and which are registered under the provisions of this Act.
In other words, the proposed Act does not seek to reinvent the structure of these organizations, but assumes that they have been or will be registered under the Companies Act and be subject to the controls and regulations thereunder as now obtain, but that if they want to benefit from the privileges granted by the new law they must submit to further controls and regulation.
The proposed law declares that every person has the right to associate freely and voluntarily, without any previous authorization, to form and carry out the activities of a Non-Government Organization, but any NGO wishing to enjoy the benefits of this Act must apply to the Registrar [of the General Registry of government] to be registered in the Registry of NGOs established under this Act and deliver to him documents that certify it as a legal entity; that state the objects of the organization that relate to sustainable human development; that relate the organizational structure of the NGO, including whether or not it is a membership organization and if so how persons may become members; how the NGO is governed and managed, stating how those persons are selected or elected and for what terms and with what powers and duties; management mechanisms; accounting mechanisms; the names of the persons currently holding the various posts on the Board of Directors or other directing body of the organization; the types of programmes that the NGO carries out or intends to carry out, and audited accounts of the NGO's finances for the latest financial period.
The Registrar is required to open a Book of NGOs in the General Registry and to register therein and file the documents presented by every NGO whose objects and programmes relate to any one of the following:
(i) the promotion, defense and education about human rights and fundamental freedoms;
(ii) civil and constitutional rights and obligations;
(iii) assistance with the development, elaboration and implementation of community development projects;
(iv) the promotion of conservation and the sustainable use of natural resources;
(vi) assistance to and promotion of social movements, groups or organizations that are concerned with the rights of workers, farmers, indigenous peoples, women, youth, marginalized communities or other disadvantaged social sectors.
(vii) health and sanitary education and action;
(viii) assistance to local production projects involving urban or rural poor people;
(ix) the full participation of women in the development process and the sponsoring of gender awareness and sensitivity;
(x) the provision of supervised credit to any of the groups mentioned in (vi) above;
(xi) any other activities that promote sustainable human development.
There are provisions for applicant NGOs to appeal to the Supreme Court if the Registrar refuses to register them.
All NGOs registered under this Act shall be recognized by the government and by all its relevant ministries and departments as partners in development, and accordingly such ministries and departments must establish mechanisms for consulting with the relevant NGOs in the definition, formulation, implementation and evaluation of social projects that fall within the ambit of such NGOs; inform the said NGOs of any decisions taken as a result of such consultations; and where possible engage the services of NGOs to carry out any part of the planning or implementation of social projects.
The proposed law also requires government to establish a mechanism for coordination with NGOs, with a view to maintaining harmonious relations of collaboration, coordination and mutual respect with such NGOs; providing technical support for the institutional strengthening of NGOs upon request and where possible; and channeling potential projects and funding possibilities from abroad to the relevant NGOs. In addition, government shall where possible assist the NGOs with financial and other resources, both from its own resources and from foreign donors, for the carrying out of their programmes.
The proposed law then declares that NGOs registered under the Act shall be exempt from all national and municipal taxes in respect of their property, income or services ( including any sales taxes, income taxes, stamp duties, import duties, or any other taxes or duties now existing or to be imposed in the future), where these are directly related to the activities and projects of the organization
In order to qualify for such exemptions each NGO must apply in writing to the relevant authority, and the letter of authorization for the exemption of taxes and/or duties shall be delivered by the relevant authority to the applicant NGO within eight working days of application, and shall be valid for a period of one year. The same shall be renewed for successive and equal periods provided that the NGO satisfies the requirements of the law by way of fully reporting on the goods and services acquired under the exemption and the programme or project for which they are being used.
The proposed Act also provides that persons who make donations to NGOs shall be eligible to have those donations tax-deductible upon certification by the eligible NGO, including the use to which the donation is put. The Income Tax Department may use any resources at its disposal to verify the validity of such donations in accordance with the mechanisms established by law.
The law allows NGOs to undertake commercial, industrial, agricultural and other profit-making enterprises of whatever kind, provided that this is authorised by their statutes and provided that the profits are re-invested in the human development projects of the organization, in which case, upon proof of such re-investment, such profits shall likewise be free of taxes and duties.
Any credit activities carried out directly by NGOs shall be exempt from all taxes and duties, provided that they are issued to community groups, cooperatives, or other organizations for human development projects or for production activities benefitting small producers.
In return for these privileges, NGOs must establish and implement those internal procedures relating to accounting and administration which are necessary to guarantee the transparent and proper use of its resources. They must carry out an annual external audit by a duly authorized firm of auditors, and deliver the same to the Registrar within three months of the end of its financial year.
NGOs must also fulfill the following obligations in relation to their activities:
(i) present to the relevant competent State authorities, upon request, information relating to their activities and to their financial affairs.
(ii) utilize their resources for the fulfillment of the aims and objects of the organization.
(iii) take steps to improve the efficiency and professionalization of their services and the continuous technical and human formation of its staff and/or members.
The failure of any NGO to comply with these obligations shall result in the cancellation of its registration under this Act and consequently the loss of any privileges or benefits granted hereunder. Such cancellation shall be effected by the Registrar following an independent investigation carried out by the Registrar's office, and after providing the NGO with an opportunity to present its case.
The ministries or departments of government responsible for finance or for social and community development may state a case to the Registrar for carrying out such an investigation. Any NGO aggrieved by the decision of the Registrar to cancel its registration under this Act may apply to the Supreme Court for redress.
Any NGO which loses its legal personality by virtue of any law under which it was constituted shall immediately be subject to its registration under this Act being canceled.
The proposed law makes provision for the formation and registration of networks of participating NGOs, and such entities shall be eligible for registration, and shall thereby assume the same rights and obligations as NGOs registered under the Act.
The law also insists that NGOs must be operated on democratic principles and provides for a Code of Ethics governing the operations of NGOs to be drawn up and enforced.
If accepted in the form to be submitted by the NGOs to government, the Act would be a very important step in improving the legal regime affecting such entities in Belize, since it contains several important principles, such as:
- the independence of NGOs
- the regulation of NGOs necessary to ensure accountability and transparency while respecting that independence
- the principle of self-regulation
- the recognition of their partnership role in development
- the limitation on the right of Ministers to take arbitrary actions and decisions with regard to NGOs, by making controls subject to public officers and to the courts
- the institutionalization of the fiscal regime governing NGOs
- the principle that NGOs must be governed democratically
It is impossible at this stage to predict whether, and to what extent, government will agree to legislate the proposed reforms, but the climate seems to be generally favourable for such reforms to find acceptance, and the NGOs involved in the exercise are optimistic about the outcome.
Belize Index
Main Page