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Outraged disabled charities call for NGO laws
Karl Schembri
The story exposing a sham charity claiming to offer residential services for the disabled has triggered angry reactions from other NGOs working in the field, who are insisting with the government to pass laws regulating the voluntary sector urgently.
Minister for Family and Social Solidarity Dolores Cristina has joined the National Commission for People with Disabilities (KNPD) in denouncing Dar Speranza in Birkirkara as “a racket”, but a legal vacuum has permitted the organisation to collect donations, get tax exemptions and even receive funding from the Community Chest Fund since 1985.
A MaltaToday investigation last week revealed that the Speranza Complex for Handicapped People and their Elderly Parents run by Alfred Delia in Valley Road, Birkirkara, offers none of the “specialised and most sophisticated services” it claims to offer, having not one resident client there.
“Feeding off the vulnerable and their families deserves general condemnation and the perpetrators should be brought to book,” Cristina said. “The collection of donations by fraudulent charities is in breach of the law, according to the Criminal Code. The police investigate any report of such fraudulent actions once this is submitted formally to them.”
But for more than 20 years, Delia has been deceiving people into believing that he operated a residential complex for the disabled, with no effective legal action stopping him.
“The organisation exposed has been tricking people for years, it’s a shame nothing was done to stop him,” said Josie Muscat, the founder and director of Eden Foundation, which publishes its audited accounts every year.
“It is very unfair that fake charities like this are allowed to go on collecting donations, undermining the public’s trust,” Muscat said. “The public has no obligation to give us donations; whoever donates money is making a sacrifice, so we would more than welcome any regulations that would guarantee transparency and accountability. At Eden we have been publishing our accounts for years, explaining how we spend every cent we’re donated, but this should be made mandatory by law today before tomorrow.”
Reactions
Claudia Taylor East, chairman of Malta Resource Centre for NGOs and SOS Malta said that although reputable organisations had been lobbying hard with government to regulate the sector, the procrastinated legislation has allowed a few bogus organisations to get away with their fraud.
“The public’s trust has always risen to the occasion in helping voluntary organisations but if we had the proper regulatory laws the Speranza sham would have been avoided,” Taylor East said. “The NGOs law is long overdue, it is in the interest of both donors and the organisations that some sort of accountability is brought in, and that services offered by NGOs are certified to be of European standards.”
Harry Fenech, the administrator of Dar il-Kaptan, said regular monitoring of NGOs’ services and financial accountability were needed to maintain the public’s trust.
“We depend on donations so we’re bound to justify every cent we spend,” Fenech said. “Most of us do it out of self-regulation, but that doesn’t stop the fake organisations from pursuing with their scams. Laws and enforcement would help in ensuring standards.”
Antoine Gauci, of the Down’s Syndrome Association, said all voluntary organisations should be registered to ensure accountability and quality of the services they offer.
“Cases of fraudulent organisations can tarnish the reputation of others that have everything above board, so monitoring and enforcement are needed,” Gauci said.
The general manager of the Malta Hospice Movement, Antoinette Shah, said that NGO’s workings had to be as public as possible particularly when they regard vulnerable people.
Anton Vella on behalf of Dar tal-Providenza, said he agreed to having specific laws regulating NGOs “as long as there is no undue interference”.
The Chief Executive of Razzett tal-Hbiberija, Nathan Farrugia, agrees with routine monitoring of services offered by NGOs. “We would welcome that. In the meantime we use strict benchmarks and standards to ensure our services are top notch,” he said. “Since we employ professionals, many of these are already bound by their own professional codes. I think that the onus of responsibility should lie on the organisations themselves, based on strict codes of practice and ethics. Self-regulation should breed responsibility but should also be strengthened by proper legislation, peer pressure and public scrutiny.”
Farrugia also called for a distinction between charity organisations giving free or heavily subsidised services and others that charge commercial fees for their services.
“Charity and NGOs are given the same status but they mean different things,” he said. “If you're a charity, and therefore collecting donations, you should be giving back to society. If you're charging for your services, then by default, you're not a charity. On the other hand, as an NGO, your aims should be social, and therefore service provision that is charged for should be heavily subsidised. Charging commercial prices rules you out of both of the above.”
Awaiting legislation
Lauding the work carried out by voluntary organisations in the field, Cristina told MaltaToday the much awaited laws are about to be tabled in Parliament.
“Without voluntary organisations’ help, many people would be worse off. They have proved to be invaluable as service providers, which is why it is a pity that the rare occurrences of fraudulent charities lead to an erosion of the public trust, with a resultant decrease in practical and financial help coming from the general public,” the minister said. “The proposed Voluntary Organisations Act, which should come to Parliament in the short term, will make all registered NGOs accountable and their modus operandi transparent.”
Still, the minister could not give a date when the Bill will be tabled in Parliament. “It now remains for the amendments to the Civil Code to be finalised by the Ministry for Justice and Home Affairs,” she said. “Once these amendments are finalised, legislation can be moved in Parliament.”
A spokesman for the Home Affairs Minister also could not commit himself to a target date, limiting himself to saying that “work is in hand to amend the Civil Code and amendments will be published as soon as finalised”.
The lacking piece of legislation is also working to detriment of NGOs who would need official certification for EU funding.
“It’s about time, after we’ve restructured everything else, to restructure the voluntary sector and set it up to EU standards,” said Taylor East, whose resource centre helps NGOs in organising themselves and network with the rest of European civil society. “Opportunities are being missed in the meantime.”
kschembri@mediatoday.com.mt
Links: www.maltatoday.com.mt/2006/03/26/t1.html
www.mfss.gov.mt/services/subpages/content_index.asp?id=ngo§ion=laws
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