Fake NGOs: Means for siphonig off funds

Fake NGOs must be in tens of thousands in India and in millions all over the world. As movers and shakers some NGOs have performed in an excellent manner in their specific areas of focus, ranging from conservation of nature, human rights, to space exploration. There are as many NGOs as there are issues, and many issues have thousands of NGOs working on them, and with good results.

NGOs have been able to attract vast resources in terms of funds, and dedicated manpower and acquire in their processes of working a great deal of influence and bargaining power. Infact there are many areas where one may say they have even supplanted trade unions (whose clout has been diminishing worldwide in the last two decades) as pro poor, pro worker, especially as supporters of unorganized labour force.


Voluntary workers have ensured that many of the NGOs are less pyramidal, more flat in their organizational structure and have given a great deal of leeway for individual initiatives. This has also attracted many to prefer NGOs as a career and a profession. Economics of scale has ensured a fairly viable career with the added attraction of independence of action. Job satisfaction is an added bonus that appears to come with the turf.

Their ability to deliver humanitarian aid to inaccessible areas especially in disaster struck zones in an effective manner has ensured their acceptance as dependable conduits in ensuring that aid reaches the appropriate areas and affected people directly. This has over a period of time changed the mindset of many governments to accept that NGOs can be trusted (still to some extent only) to help in advancing their own plans for social uplift and fulfilment of promises at the grass roots level.

This change in the mindset of governments has allowed the canalization of funds through NGOs.

When money is around can crooks be far behind?

Canalization of funds through NGOs for social activities has attracted over a period of time a grate number of fly by night operators have set up shops. The ease with which an NGO can be set up(as it should be) has encouraged the formation of NGOs to work in different areas.

However the systems that exist in the government departments and even international agencies like the UN has also ensured the setting up of NGOs with the primary motive of siphoning off of government funds.

How many fake NGOs will be there? Hundreds, thousands, millions all over the world?

How are these to be stopped? Only effective audit of allocation and effective use of funds can stop this. Who will audit the auditors?

an extract from Mail Today

Police declare 400 NGOs as fake in Jharkhand

THE special branch of Jharkhand Police has declared over 400 Non- Government Organisations in the state as fake. In a detailed report, the Special Branch has divulged that more than 400 NGOs in the state exist only on paper and the addresses given by them to obtain registration were found to be fake.

The investigating wing alleged that about Rs 5billion, that had presumably been received by them so far from different sources in the name of social activities, had been misused. Many of them are entitled to obtain aids from the Centre too, the report says. During investigations, either dilapidated buildings or school premises were found at the addresses given by these NGOs. The special branch has sought report from the deputy commissioners of various districts about NGOs being run in their areas.

One Response

  1. There are several such fake NGOs in Bangalore. Their mode of operation is simple..parade several ‘hired’ kids in front of foreign donors and claim that they are orphans. The money is then siphoned off using fake bills. The whole operation is managed by family and friends to prevent outsiders from knowing about it. Most of these fake NGOs also have credible websites complete with photos and accomplishments. I came across one such NGO in Bangalore named some “…..Trust”. Please check the backgrounds of the people who claim to run such organizations.

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