Religious sector has been hailed as a moral regenerator, a builder of cultural diversity among communities across all races, delegates at a religious sector summit heard on Friday.
“From time immemorial churches have played a pivotal role in providing social education and to help us build a caring society. We will forever be indebted to the religious sector for the critical role they played during the liberation of our country from apartheid to freedom,” MEC for Social Development Boitumelo Moiloa said, in a speech delivered by Matlosana municipal member of mayoral committee, Irene Motetwane.
Despite the good deeds of the religious sector, many of faith based organisations across the country are not complaint with the provisions of Non Profit Organisation Act.
NPO Act requires NPOs to submit their annual reports, verify organizations compliance status, update both organisational and office bears details with the National NPOs database.
The National database of registered NPOs comprises of 214 743 of registered NPOs across all sectors. The North West population of the registered NPOs stood at the 12 225 across all sectors.
Out of the total number of registered NPOs as listed above, a total of 7 967 represents the category of non-compliant NPOs with the provisions of the NPO Act across all sectors.
The high levels of NPO’s non-compliance, Moiloa said, carry the risks that grant funding institutions both in government, private sector, international donors and individuals are likely to be found wanting to partner with ghost entities in a form of NPO’s who lacks legitimacy as it relates to compliance with the NPO Act.
“As result of non-compliance, some NPO’s, within the sector are at the risk of become susceptible to money laundering and terrorism activities,” Moiloa said.
South African Revenue services said they have identified compliance risks in some religious institutions which include illegal issuing of section 18A certificates to funders; non-payment of debts leading to interest, none registration as employers with SARS, benefits in kind offered to Directors of Religious Institutions (employees/ Directors) and they do not submit tax returns.
Athi-anathi Mbambato from Financial Intelligence Centre said faith based organization have multiple accounts with various banks. The accounts are credited by means of inter account transfers, electronic fund transfers from other NPO’s and cash deposits. The credits into the accounts were referenced as food parcels and blankets, whilst some references were cryptic and vague.
“NPO’s are vulnerable to abuse by criminals. Some criminals used NPO’s to clean there dirty money and these are money received from crimes. Some criminals like terrorists use NPO’s to raise money needed to conduct the criminal activity,” Mbambato said, adding that Financial Intelligence Centre would continue to enlighten churches on their functions which include identifying the proceeds of crime, Combating money laundering and terrorist financing.
The Department of Social Development has rolled out a national Know Your NPO status campaign to conscientise NPO to update their status. These campaigns are targeting NPO’s everywhere including far flung areas across the nine provinces.
strong>ENDS.
For Enquiries: Call Departmental Spokesperson – Petrus Siko
Tel : (018) 388 1426
Cell: 083 647 0668
Email : psiko@nwpg.gov.za
Issued by Department of Social Development/Lefapha la Tlhabololo ya Loago
