The Authority of Civil Society Organizations (‘ACSO’) has issued this Directive No. 1002/2024 to ensure that civil society organizations operate within the legal framework, fulfill their intended purposes, and contribute positively to society while being subject to appropriate monitoring and control measures.
Purposes of the Directive No. 1002/2024
1. To ensure that organizations carry out their work in accordance with the law and the purpose of their establishment;
2. Ensuring the greater benefit of the society by enabling the organizations to be transparent and accountable;
3. In any organization, when it is found that an act that deviates from the purpose of its establishment has been committed, investigate and take corrective action; and
4. Controlling, monitoring and investigation on organizations is to make it consistent and predictable, enabling them to develop a transparent and accountable operating system.
Monitoring and Supervision
ACSO will closely monitor civil society organizations (CSOs) to ensure they comply with the law and their founding purpose. This monitoring can be done on-site or remotely and may target specific issues or be more general in nature. It will be triggered by concerns raised by the public, government bodies, or information discovered by the authority itself. Red flags for closer scrutiny include inadequate financial controls, questionable personnel practices, a lack of systems to identify and address legal violations, suspicion of illegal funding sources, and non-transparent beneficiary selection processes. ACSO will also investigate situations where donor funds do not follow the legal and tax regulations.
Investigation
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ü Based on information from monitoring, public suggestions, or government bodies, the authority can launch investigations into specific organizations. CSOs are required to cooperate with investigations.
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ü ACSO must announce that an investigation will be conducted. However, it may conduct an emergency investigation keeping the matter confidential altogether upon ascertaining that disclosure would hinder the investigation process. If ACSO finds evidence of a criminal act while investigating, it must immediately notify the police or prosecutor as appropriate.
Sufficient ground for investigation
The presence of evidence of any
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Act against the law is considered to be sufficient reason to conduct an investigation;
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Committing of illegal acts;
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Opening and using a bank account unknown to the authority;
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Conducting corporate account activity in the name of an individual or operating a bank account that should be jointly operated in the name of an individual;
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Employing foreigners in the company without proper work permit; and
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Existence of illegal practices related to procurement and asset management and asset transfer, triggers investigation by ACSO.
Time frame for the investigation process
Any investigation shall be completed within a maximum of 30 (thirty) working days, unless otherwise authorized by the Director General of the Authority, considering the scope and depth of the investigation. If the authority does not complete the investigation within the time limit, he should terminate the investigation and allow the organization to return to normal daily activities.
The investigator appointed by the authority must be in a manner that does not endanger the day-to-day activities and existence of the organization during the investigation.
Administrative measures to be taken
If the organization is found to have violated the Proclamation, and if the action is minor, the Director General of ACSO will give a written warning to the organization to take appropriate corrective action or correct the defect within a certain period.
If the organization does not make corrections according to the warning given, or if ACSO believes that the offense committed by the organization is serious, or if any other violation is found, the Director General of ACSO will issue a strict warning to the organization.
If the organization does not correct its operations according to the strict warning given, the Director General of ACSO may decide to suspend the company, unless the Director General’s decision is revoked by the Board of ACSO or suspended by the court, if the organization does not make adjustments within 3 (three) months of the suspension decision, it will be dissolved by the Board's decision.
Corrective action taken includes amending the organization's bylaws. A written warning given must clearly indicate the violation of the law, the correction that must be made, and the time frame in which it must be corrected. The time given for correction should consider the severity of the defect or fault and the complexity of the case.
The members, founders, or officers of the organization whose dissolution decision was issued by the board may submit their complaints to the Federal High Court within 30 (thirty) days of the decision. A warning issued shall be filed in the organization's archives.
Conclusion
Directive No. 1002/2024 creates a system for monitoring and controlling CSOs in Ethiopia. Its aim is to ensure CSOs operate legally, achieve their goals, and contribute positively to society, all while being subject to oversight. The process involves monitoring activities of CSOs, followed by potential investigations if necessary. Based on the investigation’s findings, ACSO can issue warnings, suspensions, or even dissolve the organization. While safeguards like time limits and appeal rights exist.
Disclaimer
This legal update is for informational purposes only and does not constitute legal advice. Million Alemu Legal Service assumes no responsibility for any actions taken based on the information contained herein. If you require legal advice for your specific situation, please contact Million Alemu Legal Service. We are your trusted partner and can help guide you through the legal process. Feel free to reach out to us at Cette adresse e-mail est protégée contre les robots spammeurs. Vous devez activer le JavaScript pour la visualiser..
Compiled by Mahlet Dejene_Legal Associate at Million Legal Services
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 Directive of ACSO on Monitoring, Control, and Investigation of Civil Society Organization.pdf | 362 kB |