Comment

November 12, 2006

“Unhealthy control”: ActionAid comment on proposed changes to foreign funding regulations in India

Indian's Union Cabinet on Thursday approved the Foreign Contribution Management and Control Bill that seeks to restrict NGOs and other organisations from receiving foreign funding. (CNN IBN, 11 Nov 2006)

The move would repeal the Foreign Contributions Regulation Act and in its place bring new legislation under which any organisation of a political nature would be barred from receiving money from abroad. (The Hindu, 10 Nov. 2006). The new bill is to be introduced to parliament in the coming winter session.

Babu Mathew, Director of ActionAid India, was interviewed for CNN IBN news on 11 November(see short version of story at http://www.ibnlive.com/videos

/25923/govt-to-scan-foreign-funds-to-ngos.html). 

His main points below: 

ACTIONAID COMMENT:

"Healthy regulation is being replaced with unhealthy control yet it is still not clear why the government feels these changes are necessary. India had a framework that was more than adequate under which NGOs had been doing very constructive work.

“This new bill does not show its teeth until carefully examined. When you look closely you see that it is about reducing democratic space and dampening the voice of civil society. Government organisations are exempted.

“Authority to exercise control over NGOs and decide what is of a ‘political nature’ will be delegated to the executive rather than the legislature – to civil servants rather than elected representatives. And guidelines are far from clear, dramatically increasing the risk of that power being misused.

“Under the new legislation, NGOs will be asked to renew their registration every five years. Registration can be cancelled at any time. NGO applications may be refused if a case has ever been brought against an office bearer of the organisation, even if proceedings are far from complete. Filing an unfounded case can be a matter of two hours. Disposal of the case can take up to 10 years”.

(Professor Babu Mathew, Country Director, ActionAid India )

ActionAid in India :

ActionAid has been working in India since 1972 with the poorest communities, amongst them dalits, tribals, muslims, homeless and disaster-affected people. Thanks to over 160 partner organisations, ActionAid is active in 24 of India 's 29 states and two out six Union territories including Andaman and Nicobar islands . ActionAid work in India is largely funded by regular individual donations, with organisational donors contributing to emergency responses and programmes with Musharars, the most marginalised dalit group.

ENDS