PBO Act commencement
The Public Benefits Organizations (PBO) Act, 2013 was finally operationalized on 14th May, 2024 after over ten years’ wait. The Act was operationalized vide legal notice number 78 of 2024. The Public Benefit Organizations Regulatory Authority (the authority) which notionally replaced the Non-Governmental Organization Co-ordination Board (the former board) upon commencement of the PBO Act, has a one year transition period.
Absence of PBO Act subsidiary legislation
In the intervening period, the major issue that has arisen since the PBO Act was operationalized is the absence of governing rules/regulations and the NGO code of conduct that give effect to the provisions of the PBO Act. Accordingly, compliance by the existing NGOs especially with regards to reporting obligations which must be in accordance to prescribed forms, has become a challenge.
No lacuna in compliance procedures
While interviewing officials from the new authority regulating PBOs, Nephine Law Advocates confirmed that even though the PBO regulations are yet to be formally adopted, all existing NGOs and the new PBOs are required to continue reporting and filing returns as per the prescribed forms under the repealed NGO Co-ordination Act until the PBO regulations are enacted.
Way forward
Consequently, the existing NGOs and the newly registered PBOs must comply with the duty to submit reports, returns, statement of audited accounts, financial statements and other reports on the activities of the PBOs as per the repealed Act’s forms until the PBO regulations are formally adopted.
