[WATCH] Unregistered voluntary organisations will not benefit from public funds

Public consultation on Voluntary Organisations Act launched

Amendments to the Voluntary Organsiations Act have been launched for public consultation until July 6, Social Dialogue Minister Helena Dalli said today.

Addressing a media conference with Commissioner for Voluntary Organisations Kenneth Wain, the minister said the reviewed law would strengthen the Commissioner’s law, giving him the necessary legislative power to ensure compliance by the registered organisations.

Amendments to the legislation started in 2011 and continued under this administration. Legal consultants Ganado Advocates were retained.

“We are allowing a longer period for consultation as we expect the amendments to generate huge interest,” Dalli said.

Wain, who has repeatedly called for a stronger role and stricter rules to regulate voluntary organisations, said the amendments were not about fine-tuning the law.

“New principles will be introduced to ensure a law that reflects today’s times,” he said, adding that the Commissioner’s duty will increase to ensure that voluntary organisations follow the law.

A loophole in the legislation allowed unregistered voluntary organisations to benefit from public funds: once the amendments come into force, only registered voluntary organisations will receive public funds. The amendments will thus remove the Minister’s discretion.

Making it obligatory for all voluntary organisations to register would also help in the fight against money laundering and other individuals who might use such organizations for any underhand or criminal dealings.

“It is not the first time that I’m asked about organisations suspected of money laundering and they always turn out to be unregistered organisations,” Wain told MaltaToday.

The legislations describes voluntary organisations as groups which are non-profit, serve a public purpose and which are autonomous. Organisations controlled directly by political parties or ecclesiastical institutions do not fall within the scope of the law.

Organisations that do not skip the €5,000 threshold need not to register but they must still inform the Commissioner who would be keeping a separate register.

The amendments will also change the way by which members of the Malta Council for Voluntary Sector are appointed to the board. Half of the board members will be elected.