Kalonzo’s foundation among 957 NGOs facing ban over cash

A foundation associated with former Vice-President Kalonzo Musyoka and the prominent rights defender, Kenya Human Rights Commission (KHRC) are among 957 organisations which have 14 days to submit their audited accounts to the NGOs Coordination Board or be deregistered.

NGOs Co-ordination Board chief executive Fazul Mahamed issued what he termed the final warning to the organisations, saying they had failed to account for Sh23 billion out of Sh140 billion received from donors.

The Kalonzo Musyoka Foundation faces deregistration for allegedly not accounting for Sh64 million and operating two parallel accounts without the authority of the board. The regulator has accused the KHRC of not having accounted for Sh1.2 billion.

Addressing the Press Thursday in Nairobi, Mr Mahamed said the NGOs have failed, refused, neglected  and  declined to account for the funds they received despite the numerous reminders issued to them by the board.

“We wrote to the concern NGOs on September 3, we later gave them a 21 days’ notice but they have not obliged. They now have 14 days from today to oblige or be deregistered,” said Mr Mahamed in Nairobi Thursday.

He said some of the NGOs were involved in money laundering and terrorism activities but declined to name them.

Mr Mahamed added that the board had forwarded the list all the NGOs to Central bank of Kenya and Kenya Bankers Association to freeze the bank accounts of the deregistered civil society groups.

“The board has also forwarded the list of the deregistered NGOs to the financial reporting centre and the Directorate of Criminal Investigations for further investigation and possible prosecution,” he said.

However, he said, the NGOs that would comply with the law would be spared deregistration.

Mr Mahamed added that the board was also concerned with some NGOs, which in conjunction with certain lenders open, operate and close bank accounts without the requisite approval.

“We wish to advise the banks that any NGO account opened or closed without a letter of authority from the board is an illegal account and must therefore be immediately regularised and the board has already written to the banks on the same,” said the chief executive.

Africa Development Solutions is accused of not failing to account for Sh9.7 billion, Ahadi Trust, known for its anti-jiggers campaigns, (Sh84 million), Deaf Aid (Sh164 million), JISDO (Sh203 million) and African Population and Health Research Centre (Sh5.8 billion).

Mr Mahamed said the audit was conducted for 10,015 NGOs.