By Sellah Chunda

Lilongwe, August 27, Mana: The Non-Governmental Organizations Regulatory Authority (NGORA) has emphasized the need for increased accountability within the NGO sector.

Speaking at a breakfast meeting in Lilongwe organized in preparation for NGO Day, NGORA CEO Edward Chileka Banda highlighted the importance of tracking foreign exchange (forex) provided to NGOs. He noted that while the Reserve Bank of Malawi has supervisory powers under the Banking Act, there are concerns about compliance with financial crime laws, particularly those related to money laundering.

"NGORA needs to delve deeper into the issue of forex management. Under the Banking Act, the Reserve Bank of Malawi has supervisory and monitoring powers, but financial crime laws prohibit activities related to money laundering. NGOs holding foreign-denominated accounts should be closely managed by banks, which are required by law to declare their financial positions monthly. Any gaps in this process must be addressed to ensure that all stakeholders operate within the law," Banda stated.

He further stressed the importance of the Reserve Bank working closely with other authorities, such as the Financial Crimes Authority, to address these issues effectively.

Deputy Director of Planning and Research in the Ministry of Gender, Geoffrey Chimwala, expressed concern over the misuse of NGO funds. He pointed out that some NGOs use the names of Malawians to secure funds, which ultimately do not benefit the intended recipients.

"NGOs are supposed to abide by the NGO Act, which was enacted in 2015 and amended in 2022. They operate in the name of Malawians, so it is crucial that they comply with our laws and regulations. NGOs should provide transparent information regarding the resources they generate, whether in Malawi Kwacha or foreign currency, so that the government can benefit," Chimwala said.

NGORA was established to oversee the operations of NGOs in Malawi, ensuring they operate within legal frameworks and contribute meaningfully to the country’s development.