How weak enforcement is fueling rise in illegal NGOs 

In August 2021, the National Bureau for NGOs made its most sweeping clamp-down of civil society organisations in Uganda, which it deemed to be operating illegally.

Up to 54 non-government organisations were targeted, with their operations shut down, as the bureau sent a strong message of intolerance to those who do not play by the book. Some of the prominent NGOs that were suspended included Chapter Four Uganda, Great Lakes Institute for Strategic Studies, just to mention a few.

While closing those NGOs, the bureau listed three critical factors to back its decision: the NGOs were operating with expired permits; the NGOs failed to file annual returns and audited books of accounts to the bureau; the NGOs are operating without registering with the bureau.

The NGO Bureau is a semi- autonomous body under the ministry of Internal Affairs and is the regulatory entity mandated to monitor, regulate and coordinate the activities of all NGOs in Uganda. The Bureau maintains an updated register of the NGOs permitted to operate in the country and regularly releases the register to the public.

THE FLIPSIDE

According to records, there are 2,170 NGOs permitted by the NGO Bureau, and yet unofficial records show there are more than 10,000 illegal NGOs operating in the country.

In fact, it can be argued that some of the NGOs drew the attention of the NGO Bureau because of dealing in controversial activities and their criticism of government.

So, more than 8,000 NGOs continue to operate illegally in the country, something that continues to expose the NGO world as a den of criminal activities such as fraud and money laundering.

For instance, the NGO called Grassroots Reconciliation Group (GRG) started operations in northern Uganda in 2007 to restore war-torn communities of the Lord’s Resistance Army (LRA) war. GRG, which is founded by Sasha Lezhnev, quickly managed to gain the trust of locals and several donors who believed in its noble cause.

According to their website, one of its key donors is The Sentry, an organization that was co-founded by Hollywood star George Clooney. The NGO also claims to use the donated funds to provide assistance to the victims of the war and help them rebuild their lives.

Everything about the NGO looks legitimate until you land on the most important fact; it is operating illegally in the country, according to NGO Bureau records. In its latest publication on February 6, 2023, NGO Bureau noted that GRG is not recognized as a valid NGO in Uganda.

The bureau requires NGOs to submit their audited annual books of accounts and annual report. However, records show GRG last published its annual report for the year 2019. So, it is not just GRG’s legality that is questionable; even the organization’s expenditures are suspicious.

In fact, some locals in Gulu, Amuru, and Nwoya where it operates had already started to question its real motives when it soon became clear that the organization was not using the funds for the intended purpose.

“We are suspicious we are dealing with fraudsters because they have failed to produce audited books of accounts for the past three years and their structure of operations in racist in nature. There is no single Ugandan on their board of directors and they have only been reduced to being staff,” said a top-level Gulu district official who preferred anonymity.

By 2019, GRG claims to have reached almost 2,000 direct beneficiaries through their conflict resolution work. However, there is no independent verification of these numbers because the organization has not published its 2020, 2021 and 2022 annual reports on its website. Publishing annual reports is part of strong corporate governance culture that builds trust within the public, especially if you receive money from donors.

Last year, local authorities in Gulu and Amuru launched an investigation into the NGO’s activities after being tipped off that the leaders of the organization could be siphoning off large amounts of money for their own personal use.

“We did not make much headway because the bureaucracy at the NGO Bureau. We were told I [NGO Bureau] needed more time to investigate the matter,” said the official. “We suspect the NGO is engaging in illegal activities but the process to verify that takes too long.”

Records from The Sentry’s tax filings of 2019 to the USA government show there is no proof to show that the organisation donated any money to GRG. According to the tax filings, whatever donations that The Sentry made, it went to support activities in the Democratic Republic of Congo. GRG says it only focusses on Uganda and South Sudan issues. Reached out for a comment on GRG’s phone number for donations [0779126937], the recipient asked for more time to consult before providing a comment.

The case of GRG is not an isolated one, according to several NGO Bureau officials approached, and there are hundreds of complaints of unregistered NGOs fleecing an unsuspecting citizenry.

In fact, such cases have sparked nationwide conversation about the importance of transparency and accountability in the non-profit sector. It has also led to greater scrutiny of illegal NGOs operating in the country and ways to prevent fraudulent situations from occurring in the future.

WHY IS IT HARD TO STOP ILLEGAL NGOS?

Stopping illegal NGOs from operating in Uganda has proven to be difficult for several reasons, in spite the tough legal regimen. Critics cite corruption for playing a significant role in enabling illegal NGOs to operate.

“The police and NGO Bureau officials are sometimes bribed to look the other way or to grant permits and licenses to organizations that should not receive them,” said an official from the ministry of Internal Affairs who preferred anonymity.

But according to Okello, the biggest hindrance is lack of resources to monitor NGOs countrywide as well as the absence of enough enforcement manpower.

“What we lack mostly is enforcement mechanisms in place to monitor the activities of NGOs, especially upcountry. This makes it easier for illegal organizations to operate without fear of punishment,” he said.

“We also have limited resources, including financial and personnel, to effectively monitor and regulate the activities of NGOs. This makes it harder to identify and stop illegal organizations from operating.”

A top-level official from the ministry of Internal Affairs who preferred anonymity reasoned that a lack of awareness affects their operations.

“The general public, including potential donors, may not be aware of the risks associated with illegal NGOs. They may not know how to properly vet organizations before making a donation, making them vulnerable to fraud and exploitation,” he said.

“The combination of lack of effective regulation, weak legal systems, corruption, lack of awareness, and limited resources can make it challenging to stop illegal NGOs from operating in Uganda.”

In the end, the story of GRG in northern Uganda is not an isolated case and serves as a cautionary tale of the dangers of illegal NGOs operating in the country because the NGO Bureau can only manage to monitor just 25 per cent of organizations operating in the country.

It also serves as a reminder of the importance of doing proper research before making a donation, and the need for greater transparency and accountability in the NGO sector.