LETTERS: The public has demonstrated remarkable compassion and generosity in response to the war in Gaza, reflecting the deep philanthropic values in Malaysian culture.
While this altruism is commendable, it also raises concerns about the need for better regulatory oversight of charitable bodies. The potential for entities to collect funds under the pretext of charity, without proper regulation, needs to be addressed.
Allegations of misuse of funds not only betrays donors' trust but also deprives beneficiaries of much-needed aid.
At the moment, the Malaysian Anti-Corruption Commission (MACC) is investigating a charity organisation following allegations of mismanaging RM70 million.
Although investigations are ongoing and no conclusive judgments have been made, the situation has, nevertheless, impacted public trust and perception.
Mismanagement in charity organisations is not an isolated phenomenon.
Cases like these emphasise the potential vulnerabilities in the charitable sector and the importance of establishing more robust oversight mechanisms.
It is, therefore, imperative to revisit the idea of establishing a Charities Commission in Malaysia.
Besides a few studies on the matter, the call was mooted again in 2020 by Datuk Seri Dr Wan Azizah Wan Ismail (when she was deputy prime minister), aimed at enhancing efficiency, transparency and good governance in the social finance sector.
Such a commission would ensure that donated funds reach their intended recipients and are utilised effectively. This would not only align with global best practices in charity governance but would also aid in improving wealth redistribution.
Currently, Malaysia lacks a specific law that governs charities.
To improve the regulation of third-sector entities in Malaysia, it is essential to establish and implement a comprehensive legislative framework that requires the registration and reporting of these organisations.
Transparency and accountability should be balanced with reporting and auditing tailored to the size and income of each charity. The proposed regulatory body should be robust yet flexible, well-resourced, and trained to enforce laws across a diverse range of charities.
While considering the complexity of many types of charity organisations in Malaysia, enhancing public access to information on their operations and finances is crucial.
Promoting good governance practices will strengthen transparency and trust across the sector.
The establishment of a charities commission is not just a regulatory necessity but a moral imperative to safeguard the generous spirit of our people.
By aligning with international standards, addressing local complexities and putting the current government's noble concept of Madani as the main thrust, Malaysia can foster a more transparent, accountable and equitable charity sector.
DR ZATI ILHAM ABDUL MANAF, ASSOCIATE PROFESSOR DR ZURAIDAH ALI
Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times