Today the world is busy unearthing terror funding routes, but India seems apathetic despite being a major victim.
Here, the efforts are limited to paper trail as numerous loopholes exist in administration of foreign funds received by NGOs. A report on NGOs by the Union Home Ministry points that just about 2 per cent of the 20 lakh-odd NGOs operating in India are registered under the Foreign Contribution (Regulation) Act, 2010 which makes NGOs accountable for the foreign funds received by them. Further, only half (22,702) of the registered NGOs (43,527) have filed their annual returns for FY 2011-12. This is a matter of grave concern when the Home Ministry itself accepts that “the NGO sector in India is vulnerable to the risks of money laundering and terrorist financing.”
Despite the flow of funds taking a beating during the global meltdown years, the last decade has seen foreign contribution to India increasing by 137 per cent from `4,872 crore in 2001-02 to `11,546. 29 crore in 2011-12. A detailed analysis of yearly receipts suggests that the first three years of the UPA Government after it regained power in 2004 was a glorious phase for Indian NGOs as receipts for those years increased at 23 per cent, 26 per cent and 40 per cent, respectively. In the later phase, amid negative growth for consecutive years, it was the election year of 2009 (won by UPA again) when foreign contribution to Indian NGOs surged 12 per cent. It could be a coincidence, but facts do indicate a link between elections, parties in power and foreign contribution to NGOs in a big way. This, for sure, calls for an in-depth analysis related to the end utilisation of such funds, especially in the election years.
Break up of funds received based on purposes suggests that Indian NGOs receive more funds for spreading religious value than working for welfare of the needy. The same Home Ministry report points out a total receipt of `706.94 from overseas for construction / maintenance of places of worship, maintenance of priests / preachers / religious schools and education of priests and preachers, as against `336.60 crore received for construction and running of hospitals, `304.43 crore for welfare of orphans and `231.21 crore for spreading awareness and treatment of AIDS. This apart, `539.14 crore is received for research and `507.89 for establishment of corpus fund.
Considering that temporary and permanent diversion of funds received under this purpose is easier, utilisation of such funds will always be dubious unless thorough scrutiny is undertaken. Another interesting aspect is the destination of these funds. A larger segment of the country’s poor and backward population lives in States like Odisha, Madhya Pradesh and Jharkhand, but the lion’s share of the foreign contribution finds its way to districts like Chennai, Mumbai and Bengaluru. In FY 2011-12, while NGOs operating in Odisha, Madhya Pradesh and Jharkhand received `239 crore, `155 crore and `143 crore respectively, amount received by Chennai, Mumbai and Bengaluru was pegged at `899 crore, `825 crore and `812 crore, respectively.
NGO industry is no more a small one in the country. Rapid growth in the past decade has already taken it to a new level, simultaneously bringing new sets of problems. They need to be addressed meticulously at the earliest tightening the noose around unscrupulous NGOs which are doing everything other than welfare of people. Details of fund movement from receipt to spend should be kept under notice and all NGOs should be forced to furnish the details to the effect.
Transparency is of utmost importance in the NGO sector for country’s interest. In absence of it, the sector will function by and for people with dodgy propagandas and serve interests ranging from money laundering to terror financing.