CAP calls for Malaysian Charities Commission

The Consumers Association of Penang (CAP) has renewed its call for the Malaysian government to establish a dedicated Charities Commission.

Highlighting the lack of a comprehensive regulatory framework for non-governmental organisations (NGOs) in the country, CAP President Mohideen Abdul Kader emphasised the importance of this body.

CAP: Need for oversight and transparency

“The absence of a dedicated regulatory body for NGOs leaves a significant gap in oversight and accountability,” Mohideen stressed.

He pointed out the limitations of the Ninth Schedule, which only addresses Islamic charities under the state list without providing for their administration.

“We urge the government to address this gap by establishing an oversight body for Islamic charities as well,” he added.

Mohideen further emphasized the need for transparency and legitimacy in fundraising efforts, particularly for mosques, tahfiz institutions (Islamic schools), and other charitable causes.

“Ensuring transparency is essential to maintaining public trust and ensuring donations are used for their intended purpose,” he said.

“Implementing mechanisms for verification can play a vital role in achieving these objectives.”

Proposed framework for NGO regulation

To address these concerns, CAP has outlined key areas that a dedicated Charities Commission should oversee. These include:

• Registration, Administration, and Governance: Establishing a systematic framework for NGO registration, operation, and governance.
• Regulation of Fundraising Activities: Implementing regulations to ensure responsible and ethical fundraising practices.
• Conduct of Appeals: Regulating fundraising appeals to maintain transparency and accountability.

“Establishing such legislation would provide a structured framework for the operation and oversight of NGOs,” Mohideen explained.

“This would ensure accountability, transparency, and effective management of charitable endeavours and public institutions.”

The proposed statute would regulate the governance of charities by addressing key areas such as registration, deregistration, and mandatory submission of accounts, reports, and other necessary returns.

Additionally, it would oversee fundraising activities, ensuring they adhere to prescribed guidelines and standards.

Mohideen further emphasized the importance of empowering the Charities Commission to disqualify individuals convicted of dishonesty or deception from holding positions within NGOs.

This would help maintain the integrity and trustworthiness of the sector.

“The commission should also maintain a publicly accessible list of registered charities and their annual reports on its website,” Mohideen added.

“This would enable potential donors to make informed decisions and ensure accountability and transparency.”