The Hindu Business Line : Help regulate foreign donations: Chidambaram

The Finance Minister, Mr. P. Chidambaram, with the Home Secretary, Mr V.K. Duggal, at a seminar on `Foreign Contribution Regulation Act, 1976' organised by ICAI and the Ministry of Home Affairs in the Capital on Saturday. — Ramesh Sharma

New Delhi , June 25

THE Finance Minister, Mr P Chidambaram, has urged civil society to cooperate and work with the Government to "reasonably regulate" foreign contributions and ensure that such donations are utilised only for the purposes for which they are made by well-meaning organisations and donors.

"While we regard representatives of civil society like you (NGOs and voluntary organisations) as modern agents of change, we urge you to understand the compulsions of government, especially in an age where large private capital flows seem to be determining the direction in which the world economy is moving", Mr Chidambaram said in his valedictory address at the two-day seminar on Foreign Contribution Regulation Act 1976 (FCRA).

Noting that the bulk of the capital flows today were private capital flows, Mr Chidambaram pointed out that such flows now seemed to determine the ways in which domestic economies in different countries responded. He highlighted that there was an underlying common purpose among legislations such as the Prevention of Money-Laundering Act, FCRA and the Foreign Exchange Management Act (FEMA). "These are Acts designed to achieve different objectives but there is an underlying common thread i.e capital flows must be carefully regulated," he said.

The Finance Minister also said NGOs, bankers and chartered accountants should not look upon the requirements of "accounting" and "reporting" as invasion or restriction of their private rights.

"Reporting and accounting are fundamental for civil society organisations that handle money and therefore any law or any move made that requires you to account for or report for money should be accepted as part and parcel of your functioning," Mr Chidambaram said.

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Help regulate foreign donations: Chidambaram