US donors sue NGO over misuse of needy funds
The duo Engage Now Africa and Freedom Now International, accuse Kyampisi Childcare Ministries, an NGO based in Mukono District, of conversion and fraud of donor funds. File photo
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The petitioners go on to state that on November 30, 2016 the defendants jointly by false pretences of payment of medical bills for the young women rescued from Saudi Arabia requested the donors, which money was converted to other uses among other monies that were misrepresented.
The petitioners further contend that the NGO’s action of conversion and refusal to account for funds received, has the grave effects on them such as suspension or withdraw of the tax exempt status they currently hold as US Charitable Organizations.
Two US based donor charitable organisations have petitioned the Commercial Division of the High Court seeking it to order a local Non-Government Organisation (NGO) to give accountability of the funds they donated through it for combating human trafficking activities and help the needy.
The duo Engage Now Africa and Freedom Now International, accuse Kyampisi Childcare Ministries, an NGO based in Mukono District, of conversion and fraud of donor funds.
This local NGO is accused alongside its Executive Director, Mr Peter Ssewakiryanga for failing to expend and account for more than Shs200m meant for over 10 programs.
The funds in question, according to M/S J.L Oulanyah & Co. Advocates, who represent the foreign NGOs, had been dispatched to the local NGO restrictively and strictly on pre-agreed activities as a vote and after use the donors had to receive accountability.
Among funds that were neglected include those that the donors sent after signing a memorandum of understanding with Uganda Police Force to work with the NGO to combat human trafficking and child sacrifice in Uganda.
The monies were sent through the NGO whose director had to spend it as per vote and account thereafter, but he failed to give that report.
According to the court documents, the NGO on August 23, 2016 by false pretences of follow up on case involving and Eritrean trafficked women deceived, requested and received with mission to defraud $3,082 (about Shs11m) which was wired on Mr Ssewakiryanga’s account.
“Work was never executed and which monies were converted to other uses by the NGO and Mr Ssewakiryanga, and have remained unaccounted for despite several requests from donors,” reads the statement in the court documents.
The court documents further read: “On November 19, 2016 the defendants (NGO and Ssewakiryanga) jointly by false pretences of following up on counselling for Uganda young women rescued from Saudi Arabia, with intension to defraud, requested and received from the donors $9,965 (about Shs37m) which work was never done.”
The petitioners go on to state that on November 30, 2016 the defendants jointly by false pretences of payment of medical bills for the young women rescued from Saudi Arabia requested the donors, which money was converted to other uses among other monies that were misrepresented.
The petitioners further contend that the NGO’s action of conversion and refusal to account for funds received, has the grave effects on them such as suspension or withdraw of the tax exempt status they currently hold as US Charitable Organizations.
