News / National
Foreign funded CSOs rail at govt over PVOs Bill
08 Nov 2024 at 07:21hrs | Views
The government has faced intense criticism for fast-tracking the controversial Private Voluntary Organisations (PVOs) Amendment Bill, bypassing key input from Zimbabwe's civil society organisations (CSOs).
The Bill, initially introduced in 2021, has been a source of contention, with several CSOs raising concerns about its restrictive provisions and lack of transparency. The first version of the Bill was published in November 2021, followed by its first reading in the National Assembly in February 2022. However, the Bill stalled in Parliament until it was eventually passed by the Senate in 2023. President Emmerson Mnangagwa returned the Bill to Parliament for reconsideration, but the dissolution of Parliament before the 2023 general election led to the Bill lapsing.
The government has now introduced a revised version of the Bill, its second attempt to impose tighter controls on PVOs. However, this new version has once again sparked outrage, as it has moved through the legislative process with little to no consultation with civil society.
In a joint statement, 23 civil society organisations, including the Alliance of Community-Based Organisations, Accountability Lab Zimbabwe, Amnesty International Zimbabwe, and the Catholic Commission for Justice and Peace, condemned the government's failure to incorporate their concerns. The CSOs expressed their frustration that the Bill was passed by the National Assembly and sailed through the Senate on October 17, 2024, without their involvement.
One of the key issues raised by the CSOs is the Bill's provision for a three-month transitional period for registration, as well as the excessive powers it grants to the registrar and the minister, which they argue undermines the PVOs board's authority. These concerns have been consistent throughout various iterations of the Bill.
"The Bill does not account for Zimbabwe's removal from the FATF (Financial Action Task Force) grey list in March 2022, nor does it consider changes made to FATF recommendation number 8 to prevent over-regulation of the NGO sector," the CSOs said.
The FATF, an intergovernmental organization established to combat money laundering and terrorist financing, has been a key point of reference in the Bill's justification. Civil society groups argue, however, that the Bill goes beyond FATF recommendations and threatens to stifle the sector's ability to operate freely.
In response to these criticisms, Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi defended the Bill, stating that some charity organisations had been misused for illicit purposes, including money laundering and funding terrorism.
"When this Bill was first introduced, we had received communication that charitable trusts are being misused to channel funds for terrorism and criminal activities, including buying properties both in Zimbabwe and abroad," Ziyambi said. He added that the government was concerned about partisan political influence, with some organisations allegedly using foreign funds to support certain political parties or candidates at the expense of others.
"The use of foreign money to influence national or local elections through so-called charitable organisations must never be allowed," Ziyambi stated.
Despite these justifications, NGOs have raised concerns about the lack of international accounting standards in the sector, which makes it difficult for them to demonstrate transparency and accountability. During the second edition of the Institute of Chartered Accountants of Zimbabwe (ICAZ) NGO Conference in Kariba, NGOs highlighted the absence of international accounting standards specifically tailored for non-profit organisations, which they believe has a negative impact on the sector's ability to comply with regulations.
Samantha Musoke, the Financial Reporting Guidance for Non-Profit Organisations project director, noted, "When we talk about locally-led development, decolonisation, and shifting power, accountants aren't at the centre of those conversations. It feels a bit outside the realm of what we accountants can deal with."
ICAZ senior vice-president Emmanuel Mudefi emphasized the critical role NGOs play in society, especially in times of unprecedented challenges. He called on NGOs to be more innovative, transparent, and accountable, stating, "Our focus will be on innovation, optimisation, sustainability, and governance."
As the PVOs Amendment Bill continues to divide opinions, the controversy surrounding it raises important questions about the balance between regulation and the need for civil society organisations to operate freely in Zimbabwe. With the Bill now passed by both the National Assembly and Senate, all eyes are on President Mnangagwa and whether he will sign it into law, despite the overwhelming concerns raised by CSOs and other stakeholders.
The Bill, initially introduced in 2021, has been a source of contention, with several CSOs raising concerns about its restrictive provisions and lack of transparency. The first version of the Bill was published in November 2021, followed by its first reading in the National Assembly in February 2022. However, the Bill stalled in Parliament until it was eventually passed by the Senate in 2023. President Emmerson Mnangagwa returned the Bill to Parliament for reconsideration, but the dissolution of Parliament before the 2023 general election led to the Bill lapsing.
The government has now introduced a revised version of the Bill, its second attempt to impose tighter controls on PVOs. However, this new version has once again sparked outrage, as it has moved through the legislative process with little to no consultation with civil society.
In a joint statement, 23 civil society organisations, including the Alliance of Community-Based Organisations, Accountability Lab Zimbabwe, Amnesty International Zimbabwe, and the Catholic Commission for Justice and Peace, condemned the government's failure to incorporate their concerns. The CSOs expressed their frustration that the Bill was passed by the National Assembly and sailed through the Senate on October 17, 2024, without their involvement.
One of the key issues raised by the CSOs is the Bill's provision for a three-month transitional period for registration, as well as the excessive powers it grants to the registrar and the minister, which they argue undermines the PVOs board's authority. These concerns have been consistent throughout various iterations of the Bill.
"The Bill does not account for Zimbabwe's removal from the FATF (Financial Action Task Force) grey list in March 2022, nor does it consider changes made to FATF recommendation number 8 to prevent over-regulation of the NGO sector," the CSOs said.
The FATF, an intergovernmental organization established to combat money laundering and terrorist financing, has been a key point of reference in the Bill's justification. Civil society groups argue, however, that the Bill goes beyond FATF recommendations and threatens to stifle the sector's ability to operate freely.
"When this Bill was first introduced, we had received communication that charitable trusts are being misused to channel funds for terrorism and criminal activities, including buying properties both in Zimbabwe and abroad," Ziyambi said. He added that the government was concerned about partisan political influence, with some organisations allegedly using foreign funds to support certain political parties or candidates at the expense of others.
"The use of foreign money to influence national or local elections through so-called charitable organisations must never be allowed," Ziyambi stated.
Despite these justifications, NGOs have raised concerns about the lack of international accounting standards in the sector, which makes it difficult for them to demonstrate transparency and accountability. During the second edition of the Institute of Chartered Accountants of Zimbabwe (ICAZ) NGO Conference in Kariba, NGOs highlighted the absence of international accounting standards specifically tailored for non-profit organisations, which they believe has a negative impact on the sector's ability to comply with regulations.
Samantha Musoke, the Financial Reporting Guidance for Non-Profit Organisations project director, noted, "When we talk about locally-led development, decolonisation, and shifting power, accountants aren't at the centre of those conversations. It feels a bit outside the realm of what we accountants can deal with."
ICAZ senior vice-president Emmanuel Mudefi emphasized the critical role NGOs play in society, especially in times of unprecedented challenges. He called on NGOs to be more innovative, transparent, and accountable, stating, "Our focus will be on innovation, optimisation, sustainability, and governance."
As the PVOs Amendment Bill continues to divide opinions, the controversy surrounding it raises important questions about the balance between regulation and the need for civil society organisations to operate freely in Zimbabwe. With the Bill now passed by both the National Assembly and Senate, all eyes are on President Mnangagwa and whether he will sign it into law, despite the overwhelming concerns raised by CSOs and other stakeholders.
Source - newsday
