SECTION SEVEN SUPERVISION OF CHARITIES AND SOCIETIES
84. Power to Institute Inquiries
1/ The Agency may from time to time institute inquiries with regard to Charities or Societies or a particular Charity or Society or class of charities or societies, either generally or for particular purposes.
2/ For the purposes of any such inquiry, the Agency may by order require any Charity or Society or an officer or employee thereof:
a/ furnish accounts and statements in writing with respect to any matter in question at the inquiry, being a matter on which that person has or can reasonably obtain information, or to return answers in writing to any questions or inquiries addressed to him on any such matter;
b/ to furnish copies of documents in his custody or under his control which relate to any matter in question at the inquiry;
c/ to attend at a specified time and place and give evidence or produce documents.
3/ The Agency may use, for the purpose of the inquiry, any source of information including reports from the public, reports from government agencies including the reports of Charities and Societies.
85. Power to Cause the Production of Documents and Search Records
1/ The Agency may, for the purpose of discharging its functions under this Proclamation, by order, require any Charity or Society or an officer or employee thereof:
a/ to furnish orally or in writing the Agency with any information in her/his possession which relates to any Charity or Society; or
b/ to furnish the Agency with a copy of or extract from the document ; or
c/ to transmit the document itself to the Agency for its inspection unless the document forms part of the records or other documents of a court or public authority.
2/ The Agency shall be entitled without payment to keep any copy or extract furnished to it under Sub-article (1) of this Article.
86. Notification of Meetings
Any Society shall notify the Agency in writing of the time and place of any meeting of the General Assembly of the Society not later than seven working days prior to such meeting.
87. Disclosure of Information
Subject to any express restriction imposed under any other law any person may disclose to the Agency or to any sector administrator any information received by him for the purpose of enabling or assisting the Agency or the sector administrator to discharge its functions.
88. Administrative and Operational Costs
1/ Any charity or society shall allocate not less than 70 percent of the expenses in the budget year for the implementation of its purposes and an amount not exceeding 30 percent for its administrative activities.
2/ Notwithstanding subarticle (1) of this Article, the government may confer various incentives to a charity or society that allocate more than 80% of its total income for its operational purposes or demonstrates outstanding performance.
89. Employment of Expatriates
1/ No Charity or Society shall employ expatriates unless a work permit is granted in accordance with the relevant law.
2/ Notwithstanding the provision of Sub-article
(1) of this Article there shall be no restriction on the entitlement of Foreign Charities to designate country representatives.
90. Protection of Property
1/ Where, at any time the Agency has upon an inquiry or investigation with respect to any Charity or Society and is satisfied that there is or has been any misconduct or mismanagement in the administration of the Charity or Society and where it is necessary to act for the purpose of protecting the property of the Charity or Society the Agency may take the following measures:
a/ suspend the officer responsible for the misconduct or mismanagement and order the appropriate organ of the Charity or Society to assign another person;
b/ order the Charity or Society to improve its system of operation.
2/ Until the Charity or Society acts upon the Agency’s orders given pursuant to Sub-articles (1) (a) and (b) of this Article, the Agency may:
a/ prevent the Charity or Society from entering into certain obligations or making certain types of payments;
b/ order any person who holds any property on behalf of the Charity or Society or any debtor, not to part with the property or not to pay his debt without the approval of the Agency or to deposit the payment in a certain place or bank.
91. Removal and Replacement of Officers
1/ The Agency may order the appropriate organ of the Charity or Society to remove an officer who falls short of any of the requirements set forth under Article 70 and to assign another person as an officer.
2/ Until the replacement an officer mentioned under sub article 1 of this article by another officer, the Agency may order the suspension of an officer.
92. Suspension and Cancellation of License
1/Any Charity or Society:
a/ that fails to comply with the Agency’s orders under Article 73(2) of this proclamation within the time limit set by the Agency;
b/ that has submitted falsified accounts and reports to the Agency;
c/ without prejudice to Sub-article 2(c) of this Article that contravenes the provisions of this Proclamation or Regulations and Directives issued thereunder or orders of the Agency or its own rules;
d/ that fails, within the appropriate time, to provide the Agency with information required by this Proclamation; may be suspended by the agency until it comes into compliance.
2/ The license of any Charity or Society shall be canceled where:
a/ its registration has been procured by fraud or misrepresentation;
b/ it has been used for unlawful purposes or for purposes prejudicial to public peace, welfare or security;
c/ it fails to rectify the causes for suspension within the time limit set by the Agency in accordance with Sub-article (1) of this proclamation; or
d/ it fails to renew its license in accordance with Article 76 of this proclamation;
e/ It commits a crime by violating the
provisions of the criminal code or that of this Proclamation.
93. Dissolution of Charities and Societies
1/ A Charity or Society may be dissolved by the
a/ the appropriate organ of the Charity or Society decides to dissolve it in accordance with its rules;
b/ the Agency cancels the license of the Charity or Society in accordance with Article 92 of this Proclamation; or
c/ the Charity or Society has become insolvent.
2/ The dissolution of Ethiopian Charities and Societies in accordance with Sub-article (1) of this Article shall be effected by the decision of the Federal High Court.
94. Effects of Dissolution
1/ Where an order or decision of dissolution against any Charity or Society is given:
a/ the property of Charity or Society shall forthwith vest in the liquidator appointed for the purpose of winding up in the dissolution order or decision;
b/ the liquidator or that other officer shall proceed to wind up the affairs of the Charity or Society and, after satisfying and providing for all debts and liabilities of the Charity or Society and the costs of winding up, shall transfer the surplus assets, if any, of the Charity or Society to a Charity or Society with a similar purpose or to any Charity or Society by the order of the Agency.
2/ The Agency or the court may appoint the officers of a Charity or Society as liquidators for the Charitiy or Society dissolved.
3/ A Charity or Society that is being dissolved shall not perform activities other than those necessary for its liquidation unless the Agency authorizes it to undertake activities that are related to its objectives and cannot be discontinued.
4/ The Charity or Society shall retain its legal personality until its liquidation is complete and its registration is cancelled.
SECTION SEVEN SUPERVISION OF CHARITIES AND SOCIETIES