The regulator responsible for supervising NGOs has called for new powers to address the “disinterest” shown by certain organisations in abiding by the law.

Commissioner for voluntary organisations Anthony Abela Medici says it is time for his office to be given the necessary tools to address the “laissez-faire” attitude of many NGOs.

Writing in the commission’s annual report for 2020, Abela Medici says this would best be done by passing legislation empowering his office with the ability to impose administrative sanctions.

Abela Medici said the number of NGOs failing to abide by regulatory requirements was still “very alarming”, especially since his office is responsible for determining the money-laundering and terrorism financing risks these organisations pose.

There is need for an increase in the number of proficient staff employed by the office

An external audit commissioned by the office found that between five and eight per cent of NGOs do not submit annual returns, an improvement over the 53% figure reported in 2014, Abela Medici noted.

This figure, however, shot back up to 34% last year, an increase the commissioner put down to the pandemic.

The commissioner further highlighted how a total of 1,957 annual returns dating from between 2012 to 2019 still need to be vetted by his office.

This, Abela Medici said, was indicative of the need for a “major increase” in proficient staff employed by his office.

He acknowledged that substantial changes in legislation had already been enacted to give more powers to the commissioner to combat money-laundering and terrorism financing among NGOs.

Abela Medici said last year saw a lot of effort being put in to improving his office’s oversight of the sector, in line with expectations by Moneyval and the FATF.

In 2020, three NGOs were reported to the Financial Intelligence Analysis Unit and two were referred to the police. A further 30 voluntary organisations had their registration with the commissioner’s office cancelled.

In recent months, Abela Medica faced accusations of being “politically motivated” in his treatment of rule-of-law NGO Repubblika.

The commissioner has accused the NGO of being involved in financial impropriety and acting as a “private interest foundation”, rather than a voluntary organisation.

Repubblika has pushed back at the accusations, insisting that its fundraising methods are entirely normal and certainly not carried out in any manner that is in breach of the law.