Online edition of the Sunday Times: 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.
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.
