Friendly Societies will “escape” Government’s proposed legislation to regulate Non-Profit Organisations (NPOs) which was further adjusted yesterday to regulate different sizes of similar organisations in different ways.
“It’s different sizes to fit different (NPO) people,” Attorney General Faris Al-Rawi said in final (Committee) stage discussions on the bill in the Senate on Thursday.
Al-Rawi proposed a number of amendments to the bill. Concern had been expressed about the bill by various NPOs and non-governmental organisations in days leading up to Tuesday’s start of the debate in the Senate.
The bill which required a simple majority vote for passage was en route to being passed last night, with 23 of its 29 clauses approved by 7.10 pm - despite Opposition objections.
Al-Rawi said since debate of the bill began, he had met various NPOs and they had agreed on numerical and other changes to the bill, including addressing Friendly Societies.
He said Friendly Society representatives had pointed out that such organisations are catered for in other legislation.
Al-Rawi, therefore, amended the bill to exclude that category.
Another amendment changed the proposed scrutiny of NPOs. Al-Rawi said those with gross revenue under $500,000 would not be subject to regulations as those with higher revenue would be. Those with gross revenue of $500,000 and over will be subject to Financial Intelligence Unit scrutiny.
Those with gross revenue of $500,000 to $10 million would not require mandatory submission of the audited financial statement. But those with gross revenue over $10m must submit such statements annually.
Al-Rawi said “companion “ legislation to the NPO bill which will be presented later on, deals with bigger issues in the sector. He also said the Financial Action Task Force regulations (FATF) - which require NPOs to be regulated - also call for credit unions and co-operatives to be regulated. He said they will be subjected to aspects of regulatory action ahead and the Public Utilities Minister is discussing a policy paper on the issue with the sector.
Committee chairman Nigel de Freitas had to suspend Committee deliberations for 15 minutes following clashes between Al-Rawi and the Opposition.
During the suspension, Al-Rawi told reporters proposed legislation - requiring three- fifth’s majority vote for passage - is in the works, regarding no bail for people violating restraining orders. A call for this was made yesterday by Equal Opportunities Commission chairperson Lynette Seebaran-Suite.
Next Monday, the Senate will debate the “Explain Your Wealth “bill which was passed in the House of Representatives on April 8.