Pakistan

Funds misuse by NGOs: USAID files complaint to NAB

Officials express concerns over mismanagement in distribution of foreign aid funds in areas hit by natural disasters.

Zahid Gishkori November 26, 2010

ISLAMABAD: The United States Agency for International Development (USAID) on Thursday formally approached the National Accountability Bureau (NAB), filing complaints of misappropriation of funds by non-governmental organisations (NGOs).

According to officials, a delegation of USAID called upon the NAB chairman Justice (retd) Syed Deedar Hussain Shah and sought his help in investigating corruption, as the number of complaints about misuse of funds by the NGOs is on the rise. These organisations are being funded under the Kerry Lugar Aid Programme this fiscal year.

A spokesperson for the NAB told The Express Tribune that USAID officials expressed their concerns over mismanagement in the distribution of funds in areas hit by natural disasters.

The delegation was headed by Daniel P Altman and Charles D Zimmerman, who provided preliminary details about irregularities in the distribution of funds in different social sectors, he said.

The NAB chief has decided to take prompt action against NGOs dealing with US funds for social welfare. Officials from the NAB said that the delegation requested an order for an inquiry against NGOs whose names were mentioned in the complaint.

NAB officials assured the visiting delegation that the bureau will play its due role and ensure transparent use of aid coming into Pakistan. They underscored the need to check acts of corruption and the initiation of strict action against those who cheat the public for personal gains.

Interestingly, the delegation in its complaint also mentioned the involvement of US nationals in the improper and dishonest use of such funds, according to the official statement.

It was also decided that a meeting between NAB chairman and USAID inspector general will take place next month to further strengthen the cooperation between the two organisations and to further probe the matter.

International donors have expressed their concerns in the past as well over the mechanism of distribution of money to NGOs who were reportedly involved in irregularities involving delivery of funds to the target areas.

Published in The Express Tribune, November 26^th, 2010.

COMMENTS (5)

Farooq | 13 years ago | Reply There were only two such NGOs and matter is under investigation, no need to worry about. In "land of pure" this is far below the normal.

Gohar Abbas | 13 years ago | Reply NGOs that sprouted from nowhere like the monsoon frog during the Zia regieme did no good but depolitising minds of the people besides earning quick buks. Their bottomless money sacks consume huge chunk of foriegn aid being given to the poor people of Pakistan but the output is nothing except fake documents and misleading media with fudged figures. Preying on the poorest of the poor like a parasite, NGOs have always absolved themselves of being accountable to anyone. There are some technical faults as NGOs are registered under the companies act of 1980s. the government needs to revise its laws pertaining to the governing of NGOs. Legislation needs to be done at warfoot basis if these 'white collar criminals' are to be reined in.