Civil Society Groups in Ghana Call for Supportive Framework in Proposed NPO Bill

 

A coalition of Civil Society Organizations (CSOs) in Ghana has presented a unified stance on the proposed Non-Profit Organizations (NPO) Bill, emphasizing the need for a supportive and empowering regulatory framework that promotes transparency, accountability, and inclusive development.

The CSOs have made several key recommendations, including redefining the objective of the bill to adopt a supportive rather than restrictive framework, reforming the board composition to ensure independence, and establishing an independent arbitration tribunal to resolve disputes.

Other recommendations include simplifying registration and licensing procedures, eliminating criminal penalties, and introducing specific tax incentives for NPOs. The CSOs have also called for broader consultation and participation from the civil society sector in the finalization of the bill.

We emphasize that civil society must be viewed as an essential partner in Ghana's democratic and development journey," said Alhaji Osman Abdel-Rahman, Executive Director of Ghana Developing Communities Association.

The proposed NPO Bill aims to regulate non-profit organizations in Ghana, and the CSOs' recommendations are aimed at ensuring that the bill promotes a vibrant, independent, and effective nonprofit sector in the country.

Background

The Ghanaian government is planning to pass a Non-Profit Organization bill to regulate the operations of NGOs and CSOs. This bill aims to create a framework for these organizations to operate effectively while ensuring accountability and preventing potential misuse. The bill is also intended to address concerns about money laundering and financing of terrorism within the NPO sector. 

 

Key aspects of the NPO Bill:

• Regulation and Oversight:

  The bill will establish a regulatory framework for NPOs, including registration, reporting requirements, and oversight mechanisms. 

   
• Accountability:

  NPOs will be designated as accountable institutions under the Anti-Money Laundering Act, requiring them to comply with AML/CFT obligations. 

   
• Non-profit Secretariat:

  The bill proposes the establishment of a Non-Profit Organization Secretariat as a central authority to oversee the NPO sector. 

   
• Stakeholder Engagement:

  The government has emphasized the need for stakeholder consultations to ensure the bill reflects the needs and concerns of all parties involved. 

   
• Addressing Concerns:

  The bill aims to address concerns about potential misuse of NPOs for illegal activities like money laundering and financing of terrorism. 

   

Context:

National NPO Policy:

The NPO Bill is part of a broader effort to establish a framework for government engagement with NPOs, as outlined in the National Non-Profit Organization Policy. 

 

The bill is also intended to meet international peer review obligations, particularly those related to the Financial Action Task Force (FATF).  The bill is not intended to replace existing legislation but rather to build upon it, addressing identified gaps and strengthening the regulatory framework for NPOs. 

 

Stakeholder Concerns:

While the bill is generally supported, some stakeholders have expressed concerns about potential over-regulation and the need for a balanced approach that allows NPOs to operate effectively. 

 

Current Status:

• The government is currently engaging with stakeholders to finalize the bill and chart a clear roadmap for its passage into law. 
   
• Stakeholders have been participating in consultations and workshops to provide input and feedback on the draft bill. 
   
• The bill is expected to be presented to Parliament for consideration and passage in the near future