Abuse
of tsunami funds by NGOs
Centre to monitor misuse of aid
By Tyron Devotta
The President's Office has directed the External
Resources Department to keep a closer tab on future aid negotiations
and NGO volunteers while creating a centre at the Finance Ministry
to monitor such activities.
Secretary
to the President W.J.S. Karunaratne has written to External Resources
Department's Director General Sujatha Cooray saying that "large
amounts" of foreign aid allocated for development projects,
are spent on expatriate consultants ... when such expertise is available
in Sri Lanka.
He
has called for "serious attention" to be paid to this
aspect and to ensure that the expertise which is available locally
not be included in project reports. In his strongly worded letter,
Mr. Karunaratne has said that (NGO) volunteers "use this opportunity
(the tsunami relief operations) to achieve other objectives".
He does not specify what these "other objectives" are.
He
says some of these volunteers are paid from the aid packages pledged
to Sri Lanka. Mr. Karunaratne's letter is signed by Mr. M.D.W. Ariyawansa,
Additional Secretary to the President.
Meanwhile,
a Centre for Non Governmental Sector (CNGS), located in the Ministry
of Finance has been set up by the government with the twin objective
of monitoring NGOs and ensuring that aid for reconstruction is not
misused.
The
Sunday Times found this unit is headed by an executive from the
private sector and not by a government official. Kishan Theodore,
the Managing Director of Raigam Soya Products goes as the centre's
Chief Executive Officer. He admits that he has no letter of appointment
and receives no salary from the government. A member of the now
defunct Centre for National Operations, he has been named to the
post through an administrative directive by Treasury Secretary Dr.
P.B Jayasundara.
Mr.
Theodore admits that the CNGS he heads is not legally empowered
to punish errant NGOs. Even though the CNGS have been asking the
NGOs to show their pledges before registration its CEO told The
Sunday Times that they cannot take legal action if the NGOs don't
keep to their pledges.
Mr.
Theodore's position as CEO is called into question further by his
inability to sign letters. Letters drafted by him are signed by
External Resources Department Deputy Director General A. Abeyagoonasekara.
Mr. Abeyagoonasekara told The Sunday Times that they were still
in the process of seeking Cabinet approval for the CEO's appointment
-- a case of his appointment being made first and Cabinet approval
being sought thereafter.
A
Finance Ministry source who spoke on grounds of anonymity told The
Sunday Times that some of the NGOs were paying as much as 60 percent
of the foreign financial assistance they received as salaries and
administrative costs.
Mr.
Theodore points out that some NGOs pay their foreign personnel as
much as US$ 7000 (Rs. 700,000) a month. He said that the CNGS was
currently negotiating with some NGOs to reduce the high percentage
of foreign staff.
According
to this new Government policy all new NGOs must be recommended by
the CNGS before they can be registered at the Ministry of Social
Welfare. Both new NGOs seeking registration and already existing
NGOs in Sri Lanka have been asked to give details of their most
recent annual report, audited accounts, financial statements, details
of sources of funding, details of ongoing projects and programs
along with estimated costs, details of proposed projects and programs
with their estimated costs and details of agencies under which projects
and programs are implemented or proposed to be implemented. The
government has not registered any new NGOs after the tsunami. |