APRIL 26 — The reported millions in monies from public donations intended for the poor and vulnerable being diverted by officials of a non-governmental organisation (NGO) for the purchase of 18 luxury cars, branded watches and landed property have rightly been said to have gutted public trust.

It has prompted Prime Minister Datuk Seri Anwar Ibrahim to call for more stringent regulations for charities that conduct public donation collection to prevent irregularities and misuse.

Anwar said the proposal was timely as “there are currently more cases of organisations involved in irregularities and misuse of donation funds”.

More than three years ago I highlighted the call by legal scholars for a single statute or legislation to govern charities while highlighting the urgent need as well for a Commissioner of Charity (COC).

A legislation that may be called Charities Act will empower the Minister to appoint a COC, the objectives of which may mirror that in England and Singapore, which are to:

• maintain public trust and confidence in charities;
• promote compliance by governing board members and key officers with their legal obligations in exercising control and management of the administration of their charities;
• promote the effective use of charitable resources;
• enhance the accountability of charities to donors, beneficiaries and the general public.

The COC will have powers to institute inquiries with regard to charities or a particular charity or class of charities, either generally or for particular purposes, requiring any person, among others, to furnish accounts and statements in writing with respect to any matter in question at the inquiry and to furnish copies of documents in the person’s custody or under the person’s control which relate to any matter in question at the inquiry.

Where an inquiry has been instituted and the COC is satisfied that there is or has been any misconduct or mismanagement in the administration of a charity, the COC will be vested with further powers to do acts that will be necessary or desirable for the purpose of protecting the property of the charity.

The prime minister himself has said that it is time to have “stringent regulations” to govern charities.

So, let’s have a Charities Act.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.