The Opinion of the PRWB on the Financial Reports Regarding the RA Draft Law on “Making Amendments and Supplements to the RA Law on Non-Governmental Organizations

On September 14 of 2019, the Protection of Rights without Borders NGO presented an opinion on the draft law related “Making Amendments and Supplements to the RA Law on Non-Governmental Organizations presented during the public discussion held at the RA State Revenue Committee on August 30 of 2019.

As prescribed by the draft law, changes were made in the Article 24 of the RA Law on “Non-Governmental Organizations” defining an obligation for all the non-governmental organizations to publish annual report, including also on the financial activities, regardless the independent financial resources.

BY the presented opinion, the Organization reaffirmed its approach, that the intended regulations contradict the proportionality control requirements of the unions and are considered an intervention to the activities of the non-governmental organizations and contradict to the international criteria.

1. Particularly, the legislative control over the activities of the non-government organizations should be conducted by the state in accordance with the review and the obligations undertaken exclusively by the Convention[1]. That is, it should be proportionate and pursue a legitimate aim.
2. According to the general principal, the organizations which received public financial support should be accountable for the usage of those means. This means, that the non-governmental organizations should reasonably present reports on their expenditures. Nevertheless, the demand to present such reports should not impose unnecessary burden on the organizations for the submission of the detailed information on the expenditures and activities of the organization[2].
3. According to the domestic legislation, all the expenditures of the organizations are registered in the databases of the tax body and the financial revenues in the bank databases. That is, the access of those information is already ensured and from the scope of the efficient administration, the state should not impose a demand on the organization to resubmit the same information.
4. Carrying out an examination in regard to the submission of additional reports on financial and content activities of the Organization is acceptable only in case, when there are sufficient grounds for it. An examination based on suspicion is unacceptable and reasonable justifications should be available[3]. In the outcomes of the policy conducted by the state, unnecessary or inadequate burden should not be imposed by the Organizations regarding the provision of additional information on their activities.

The Opinion of the PRWB on the Financial Reports Regarding the RA Draft Law on “Making Amendments and Supplements to the RA Law on Non-Governmental Organizations