Govt investigates NGOs over forex
Government has started investigating non-governmental organisations (NGOs) to track the forex they receive.
NGO Regulatory Authority (Ngora) chief executive officer Edward Chileka Banda said this on Tuesday in Lilongwe when his agency engaged NGOs to update them on activities in the sector, including celebration of the NGO Day on October 16 2024.
He said it was surprising that NGOs generate more forex than tobacco earnings, but the country was still struggling with forex shortage and failing to import strategic commodities such as drugs.
For instance, he said the 2023 NGO report shows that NGOs received K473 billion (about K8.2 trillion) in form of forex, but the country is struggling with forex shortage.
“We got a directive from the President that Ngora, Reserve Bank of Malawi [RBM] and Ministry of Finance should investigate to what extent is the country benefitting from such forex, considering that most of the works we do in Malawi, by NGOs, we pay in local currency,” said Banda.
But Civil Society Education Coalition executive director Benedicto Kondowe said the Forex issue was beyond NGOs.
He said NGOs submit annual returns to RBM and also file audited accounts to Ngora
“Where is the problem arising, that each time government should signal as if NGOs are corrupt?” he said.
Seed Global Health Malawi finance and administration manager Gerald Chibwana also said government was better placed to explain the Forex issues.
He said NGOs struggle to access forex from banks even when they have foreign currency denominated accounts.
“When we are exchanging, the Reserve Bank is aware. Actually it is the Reserve Bank that regulates the rate that we have to trade in,” he said. Malawi has over 900 NGOs working in various sectors.
