The High Court on March 07, 2011 dismissed with costs the Order of Prohibition sought by Feed the Children, an International NGO seeking to stop the NGOs Co-ordination Board from investigating its accounts. The NGO had argued that the Board does not have the mandate to review or investigate its financial accounts and/or demand for documents relating thereto in the course of such investigation.
Inter alia the main issue for determination was: does the NGOs Co-ordination Board have jurisdiction to investigate financial accounts of NGOs?
On page 14 of the judgment and in response to the foregoing issue, the learned Judge ruled that the NGOs Co-ordination Board is empowered to prescribe rules and procedures for the audit of accounts of NGOs under Section 24(4) of the NGOs Co-ordination Act. Where the NGOs Co-ordination Board is of the view that the returns filed by an NGO are insufficient or contains insufficient information, it has a right to ask for additional information.
In his ruling Justice Daniel Musinga found that the Board was mandated under Section 7 of the NGOs Co-ordination Act to, where appropriate, conduct investigations. He further said: "considering that the applicant receives donations which it holds in trust for the benefit of the intended beneficiaries, it is against public interest to prohibit the NGOs Coordination Board from inspecting the applicant’s financial records."