Civic Space Report
In this second article we look at the regulation pertaining to the funding and receipt of funds by national organizations and present our findings and analysis on some of the important changes/elements that have been introduced.
This article comes as the second article in a series of five articles that seeks to provide an understanding of some important provisons in these new regulations and the differences from the previous set of regulations (2013 regulations) which they have replaced. The article assumes some familiarity on the part of the reader with the old set of regulations.
Whereas the previous 2013 regulations had dedicated a little under one page on issues relating to funding, the new set of regulations have dedicated 3 pages of provisions related to the receipt of funds by national organizations.
APPLICATION OF THE REGULATION
Article 3, titled Application, asserts that the regulation applies to any funding that is received by national organization for their programs from (i) the government of Sudan; (ii) or any other source be that national or foreign.
In the previous (2013) set of regulations, articles related to funding applied to both national as well as international organizations that were registered under the SVHWA of 2006. In this new regulation it applies only to national organizations. Issues related to funding for international organizations are dealt with through one article that is embedded in a separate regulation pertaining to the registration of international organizations.
REQUIREMENTS FOR APPLYING/REQUESTING APPROVAL TO RECEIVE FUNDING
The regulation maintains that all national organizations are eligible to receive funding from national or foreign entities (Article 4.1) but that any such funding needs to be through a projects document that is to be submitted to the HAC (Article 4.2) and that includes –
A description of the project, the target communities – the overall budget for the project, the source of funding – the names of any partners involved in project implementation – the geographic scope of the project – and a copy of the funding letter or the project proposal submitted to the donor/funding entity (Article 5).
Within a period of one month the Commissioner would notify the applicant/national organization of his/her decision either approving or rejecting the project funding application, and in the event of a rejection he/she would explain the grounds upon which the rejection decision was made (Article 6.1).
The one month timeframe for the Commissioner to respond can be extended for a further period of one month (Article (6.2). If the project funding application is approved the Commissioner will issue a letter to the relevant implementation authorities to facilitate and ease procedures (Article 6.3)
CONTROLS – BANKING ACCOUNTS – SANCTIONS
The new regulations have come with three (3) who new sections (not in the previous 2013 regulations) titled Controls, Banking accounts and Sanctions.
The controls section is made up of Article 7.1. through 7.4 and require national organizations receive funds from foreign sources to observe Sudan’s foreign currency regulations and to apply the provisions of the anti-money laundering laws of Sudan (Article 7.1).
National organizations are also required to submit to the HAC Commissioner reports showing project implementation and how the funding received was spent (Article7.2).
The frequency and timing of any such reports is to be determined by the Commissioner, but under no circumstance to exceed one year from the start of the project (Article 7.3).
The following section titled ‘Banking Accounts prohibits national organizations from transacting through any of the organizations members or the executive committee members (Article 8.2) and requires all financial transactions relating to funding received take place through the organizations bank accounts (Article 7.1).
The final section on sanctions punishes the president of an organization or any of its members who receives funds for the organization without observing these regulations with either a warning (Article 9.1.A) or prohibition from embarking on any activity organized under the law or its regulations (Article 9.2.B)