Charitable organisations must now submit annual reports to the Registrar of Companies

Parliament has unanimously passed the Companies Amendment Bill where organisations which are limited by guarantee and are of charity must disclose their annual accounts to the Registrar of Companies.

Prime Minister Voreqe Bainimarama says with COVID-19 and the increase in donations being made to entities for charitable purposes, there are serious concerns that many of the entities are not utilizing the donations for the purpose it was made.

He made these comments while supporting the bill and says that submissions for annual returns and reports for a charitable trust, public companies, large private companies and managed investment schemes will provide public transparency and accountability

Bainimarama says prior to COVID-19, a number of entities registered charitable organisations as private companies under the Companies Act.

NFP MP, Lenora Qereqeretabua says Sayed-Khaiyum had defended the COP 23 Trust Fund by saying that some donors do not want to be named and that is why they are not publishing the names and why the change in the situation.

She also questioned how the Prime Minister found that some entities do not use the funds for the intended use.

SODELPA MP, Aseri Radrodro says what is the need to amend the Companies Act to name and shame charitable organisations and why not amend the Charitable Trust Act.

He also questioned whether this includes religious organizations and school bodies who have formed charitable trusts. He says there are also land bank arrangements with TLTB.

Attorney-General Aiyaz Sayed-Khaiyum says after TC Winston they made tax and VAT exemptions if people brought in donated goods. However they found that those goods were being sold.

He says faith-based organisations do not register under the Charitable Trust Act but register under the Religious Bodies Registration Act.

Sayed-Khaiyum also says if a charitable organization is doing the right thing then what is wrong in simply providing the annual accounts.

He had said on Monday at the moment under the Charitable Trust Act any organisation set up for charitable purposes do not have to provide any annual accounts.

Sayed-Khaiyum said they had amended the Charitable Trust Act in 2013 where these organisations had to submit their annual accounts but the Registrar of Titles has not been very vigilant in enforcing that particular aspect of the law.

He added the reason for the amendment is that when the Act was initially introduced in 2013, lots of non-government organisations and charitable organisations registered themselves as companies and no longer provided annual reports.