THE MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON. Z. ZIYAMBI) on behalf of THE MINISTER OF PUBLIC SERVICE, LABOUR AND SOCIAL WELFARE (HON. J. MOYO): I rise on behalf of the Minister of Public Service, Labour and Social Welfare to deliver his Second Reading Speech on the Private Voluntary Organisation Amendment Bill. The Bill before you today is a very necessary measure to improve the administration, accountability and transparency of charities in our country. The legal word for charity in our country is Private Voluntary Organisation. Under our law, every charity that uses money collected from the public or donated from a foreign Government or agency is required to be registered as a PVO in terms of the Private Voluntary Organisation Act, which Bill is before you and that is the Bill we seek to amend.
Let me say from the onset that our country benefits very much from the work of those PVOs which operate lawfully within our borders. PVOs provide support for communities in a wide range of areas where the national or local Government want for resources or expertise have been deficient for any reason. I am speaking of support and assistance in the form of programmes, projects, services, goods and money in such sectors as health and education provision, assistance to widows and orphans for the relief of poverty and hunger and empowerment of youth, women and the disabled.
We, as Government, are very grateful for the help given by the PVOs. The best PVOs have access to resources, experience and expertise solely needed by the people they benefit. Therefore, from the bottom of my heart and on behalf of the Government, I would like to applaud you for the great work you are doing. Accordingly, Mr. Speaker Sir, this Bill does not speak to those law abiding PVOs I have just mentioned, but to the few who may be tempted to use the guise of charity to carry out undesirable, harmful and criminal activities. For instance, when this Bill was first introduced, we had received communication from the Financial Action Taskforce which is the world’s police against money laundering that some charitable trusts are being misused as a means for channeling funds to fund terrorism and other criminal activities or to launder the proceeds of criminal activities by buying properties in Zimbabwe and other countries.
We are also, as the Government, aware that some so-called charities act in a politically partisan manner by directing money to favoured political parties or candidates at the expense of other political parties or candidates. Partisan assistance using foreign money or money collected from the public under the guise of charity must never be allowed to influence the outcome of national or local elections. In many developed countries, this kind of behaviour is understood to be harmful to the very idea of charity. In the United States for example, you cannot register any organisation as a non-profit organisation for tax purposes if that organisation campaigns or canvasses for any political candidate or party.
It is in this context that this Bill seeks to clean up the space within which the PVOs may operate. For some time now, the Government has noticed that some so called charities have completely bypassed the Private Voluntary Organisations Act by forming “trusts” sanctioned by the Registrar of Deed, Companies and Intellectual Property. This is a devise that is specifically permitted by the Act because originally, Government did not want to discourage families or individuals from forming family or private trusts to benefit family members or member of the public using their own wealth. It is still not our intention to impose registration on these kinds of private trusts. However, it appears that any trust is using for “charity purposes,” foreign money not generated by their own activities or investments, or using money collected from members of the public at large, then they must be required somehow to register as a PVO under the Private Voluntary Organisations Act. We want such trusts to be accountable in the eyes of the public on the sources of their funds and the use to which they are put.
Mr. Speaker Sir, it was realised that the procedures for registration under the Act need to be streamlined and expedited. This is why some of these charities have chosen the route of forming trusts sanctioned by the Registrar of Deeds, Companies and Intellectual Property. We cannot run the risk of charities of a public character being used as a cover for theft, embezzlement, tax evasion, money laundering or partisan political activity.
Mr. Speaker Sir, I will not at this stage, undertake a clause by clause analysis of this Bill. The Explanatory Memorandum to the Bill admirably suits that purpose, I encourage Hon. Members to read it carefully.
With those words, I urge Hon. Members to support this Bill which is intended to promote a better, safer and more conducive environment for the operation of PVOs in our country. I move that the Bill be now read a second time, Mr. Speaker. I thank you.
