No timeline yet for charity law
PETALING JAYA: The stories are infuriating, to say the least.
Five office bearers from an NGO were arrested last month on suspicion of embezzling RM26mil in public donations.
And in 2023, news emerged about a non-profit group allegedly misusing funds meant to help a war-torn country.
This has since become a court case involving money laundering and criminal breach of trust.
Amid reports of such transgressions, what is the status of the Charities Commission which the government wanted to set up to ensure no one takes advantage of donations from generous Malaysians?
'A specific timeline for the enactment of the law (to set up the commission) has yet to be set.
'It is subject to holistic engagements with all relevant stakeholders, including the Finance Ministry,' said Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
'The financial implications remain a key consideration that must be examined as part of the overall decision-making process,' she said when contacted.
It has been a year since reports came out that the government is conducting a feasibility study to draw up a Charities Act and establish a Charities Commission to address problems related to the the misuse of funds donated to charitable organisations.
Azalina told the Dewan Negara in July last year that similar Charities Act in countries like the United Kingdom, Singapore and New Zealand would be studied.
Asked why the proposed Act had not materialised in Malaysia despite having been planned more than a year ago, Azalina said there was no timeline yet.
'Policy-wise, the proposal has been generally well received, with positive feedback from initial consultations.'
She said engagement sessions, discussions and a survey conducted last year involving 1,006 respondents showed strong public support for a dedicated law and commission to regulate charitable activities.
The government, she said, remained serious in addressing the issue and ensuring a well-structured, feasible and effective legislative outcome.
'Our current fragmented regulatory framework with multiple regulators and inconsistent definitions has hindered effective oversight,' she said.
Azalina said the Legal Affairs Division of the Prime Minister's Department has established a special committee to study the feasibility of such an Act towards establishing the commission.
'This committee comprises researchers from both public and private universities, representatives from NGOs, the Malaysian Bar and the division itself.'
Among others, the proposed Act is aimed at enhancing governance and streamlining and monitoring efforts.
Azalina said the Legal Affairs Division would hold further engagement and studies to strengthen the policy framework.
'These efforts will culminate in the preparation of a memorandum for the Cabinet's approval,' she added.
Prof Dr Zuraidah Ali and Asst Prof Dr Zati Ilham Abdul Manaf – law experts from the International Islamic University Malaysia who had proposed models for the Charities Commission last year to the Legal Affairs Division – pointed out that there is currently no regulator for the collection of charities by NGOs in Malaysia.
'We proposed three models. Now, it is up to the government,' said Zuraidah.
As for the Prime Minister's Department (Religious Affairs), its minister Datuk Dr Mohd Na'im Mokhtar said that it is working with the state authorities and enforcement agencies to look into the operations of organisations that collect funds for religious purposes.
'We are aware of the existence of hundreds of NGOs collecting funds in the name of religion and without oversight,' he said, adding that this included donations for the Palestinian cause.
He said that his department is in charge of monitoring Muslims' contributions in the name of charity but the authority remains with the states' religious councils.
'We welcome proposals to establish a body similar to the Charity Commission to monitor the activities of charitable NGOs.
'However, this must be aligned with Malaysia's Islamic legal framework, which places religious authority under the jurisdiction of the states,' he said.
To ensure that the contributions of Muslims are channelled to trustworthy parties, Mohd Na'im said that his unit, through Yayasan Waqaf Malaysia, is collaborating with the states' Islamic religious councils.
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