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April 22, 2019

Regulation of charities & funds: KP to establish charitable commission - via BR

Regulation of charities & funds: KP to establish charitable commission

The provincial government of Khyber Pakhtunkhwa is going to establish Charitable Commission to register and regulate charities and collection of charitable funds in the province. For the purpose, the provincial government has already introduced a draft legislation in the provincial assembly. The Act may be called the Khyber Pakhtunkhwa Charities Act, 2019 and would be extended to the whole of Khyber Pakhtunkhwa province and shall come into force at once.

The proposed commission would be consisted of not less than three and not more than five commissioners including the chairperson. A commissioner shall be a person who is known for integrity, expertise, experience and eminence in the field of law, administration, social work and any other related field. The commissioners would be selected from amongst serving or retired civil servants, retired judges and private sector on such terms and conditions as may be prescribed. The term of the office of the commissioner shall be two years and he shall perform such functions as may be prescribed or assigned to him by the commission. Under the Act, the provincial government would appoint one of the commissioners as the Chairperson of the Commission, but a commissioner would not be appointed as chairperson for more than two consecutive terms. The chairperson and the commissioners would be responsible for the due discharge of the mandate of the commission.

The commission without prejudice to the generality of the foregoing powers would maintain public trust and confidence in charities; issue guidance and directions to the registering authority while registering the charities; protect charities and beneficiaries thereof; ensure that charities and promoters comply with their legal obligations in exercising control and management of the administration of the charitable funds. The commission would also issue necessary advice to the charities and charity trustees; ensure effective use of charitable funds; institute a mechanism for effective monitoring and accountability of charities, promoters, collectors and recipients and hold, if necessary, an enquiry into the affairs of a charity or charitable funds. It would also alter or set aside sanction of collection accorded by the deputy commissioner; receive and examine annual audit report of a charity or charitable funds; conduct or cause to be conducted a special audit of a charity or charitable fund; issue guidelines for proper accounting, management and utilization of a charity or charitable funds; issue such directions to the deputy commissioners and assistant commissioners as may be necessary for the due discharge of the functions under the Act and perform such other related functions as government may assign to it. The government in consultation with commission would appoint a chief executive officer (CEO) of the commission, who would be responsible for the day to day administration of the commission and would perform such other functions as may be prescribed or assigned by the commission. The commission would have the power to call for record of charities and charitable funds about a charity, a charity trustee, the beneficiaries, recipient, promoters, a charitable fund and expenditure on charity by a corporate entity. The commission may seek verification of the financial records from financial institutions and may utilize the services of a law enforcing agency for the purpose, Under the Act, each charity would be assisted by a charity trustee to run its affairs, general administration, management and control. If a charity fails to appoint a charity trustee, the commission would have power to appoint such charity trustee, in the best public interest. The charity would have the power to terminate the services of a charity on various prescribed grounds. However, by exercising such powers, it would provide an opportunity of defence and hearing to the charity or the person likely to be affected by the decision of the commission.

The commission, on its own motion or on receipt of a request from the government or a complaint from any person, may hold an enquiry into the affairs of a charity to ascertain whether any charitable funds have been misused, misappropriated or there is any breach of trust and if the commission finds that an offence has been committed under any law or any trust has been breached, it may move a reference to government to proceed further in the manner in accordance with such law for the time being in force. Every charity would get itself registered itself with the registering authority not later than such date as government may, by notification determine and any charity would not collect charitable funds or seek collection the charitable funds unless it is registered under this Act.



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