Violation of SECP laws by GADO and defrauding citizens

In 2007, this organization was referred to as the local support organization (LSO) under section 5 of Companies Ordinance as a nonprofit entity authorized to carry out wide-ranging activities including rural banking to uplift the people from poverty. And there is no question the authority failed to exercise its due prudence from that day to now as several government employees joined it as founder, directors and member in the board even being not allowed by government. Most of them school teacher playing as NGO mafia and continued to be so. Under Civil Servant Act 1973 and Removal from Service Ordinance 2000 and the rule made therein, government employees are strictly not allowed. But being in the remote area, these people having strong hold and influential formed a lobby and network which plays as the NGO mafia. These people hijacked GADO and its mega international donors funding projects and still continue to embezzle millions of rupees in donor’s funds. Statutory bodies like Fund Management Authority, Management Committee and Chief Executive Officer (CEO) do not exist . Board of Director includes illiterate village people or school teacher (private and government) which is almost dis-functional and just by name. The Chairman being a CT teacher is not eligible for the position and as such there is an element of illegality ab initio. The Annual General Meeting (AGM) of this company has only been called once in 2010 and the registration of this company was not renewed from 2007 to 2014. Both of which should be on annual basis. Without budget approval form AGM funds are spent. This is the only company I have seen ever where I see the top position is just Manager and CEO does not exist. Chairman and Directors have themselves appointed project officers and embezzled huge funds. The newly-appointed BOD member for finance told me that he has proof of huge corruption made by the Ex-Manager . The question is not how the Mafia playing inside GADO like organizations but the question is what Securities Exchange Commission of Pakistan is doing in regulating Non- Profit organizations. Is SECP a failed authority in exercising its mandate? If not then why the donor funds being misused and the blood of poor masses in this country has always been sucked. It is hoped that the Securities Exchange Commission of Pakistan will take notice of this issue and will regulate Garam Chashma Development Organization (GADO) for the ultimate benefit of the ultra-poor community in that remote and backward part of this country. Khairuddin Shadani]]>

Leave a Reply

Your email address will not be published. Required fields are marked *