The Honourable Minister of Finance Neal Rijkenberg meets with CANGO Directors Forum

On 12 June 2024, the CANGO NGO Directors Forum, which is comprised of the leadership of the various CANGO member organisations had a meeting with the Hon. Minister of Finance Neal Rijkenberg & other esteemed Ministry of Finance (MoF) officials. This meeting was supported by UNDP in Eswatini. The meeting sought to establish a channel of engagement on tax and NGOs, anti-money laundering and terrorist financing risks for NGOs. 

The Chairperson of CANGO, Nohlanhla Dlamini thanked the Hon. Minister for availing himself & making time for this important engagement. The Chairperson also spoke on tax relief for NGOs as NGOs are dependent on donor support and are not profit-making entities. The Chairperson also highlighted that the relevant authority to engage in tax matters is the Eswatini Revenue Service (ERS) & the MoF. The Chairperson further pointed out the challenges that NGOs face whilst carrying out their respective mandates. 

In his address to the forum, the Hon. Minister of Finance unpacked the importance of the work NGOs do & contribute to society. The Minister then emphasized on the importance of compliance to tax laws such as the Income Tax Order and the Value Added Tax Act. The Minister also encouraged proactive engagement by NGOs with the Eswatini Revenue Authority on their respective challenges. An example was made that there are some NGOs which generate income for the purpose of financing their non-profit activities such as selling goods to raise funds. In these cases, the respective NGO is to engage the ERS to receive guidance on how to move forward regarding taxes. 

The Hon. Minister also informed the forum that the ERS has a certain right to write off a tax penalty & the Minister also has a certain right to write off the interest. The Hon. Minister further stated that he is willing to consider tax write off requests that come from NGOs. The Minister stated that remitting VAT & PAYE is mandatory, and the Minister can consider writing off those two taxes upon certain occurrences such as liquidation. The Minister further advised NGOs experiencing cashflow problems to approach the issue proactively rather than reactively and engage ERS in good time. 

The meeting was very informative and engaging. The ERS made a presentation on the importance of income tax & how these funds are utilized by the state on social goods & services. Furthermore, the Eswatini Financial Intelligence Unit (EFIU) also made a presentation on the risks NGOs face from being used as conduits to fiancé terrorism. The EFIU is an important agency which safeguards the country’s financial system from illicit use. The EFIU further informed the forum that the Financial Action Task Force (FATF) found that terrorism threats to Non-Profit Organisations continue to be a threat. The FATF leads global action to tackle money laundering, terrorist and proliferation financing.  The FATF also researches how money is laundered, and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action. FATF makes recommendations to Eswatini for combating money laundering and the financing of terrorism. The EFIU is actively addressing the recommendations made by the global body. 

This meeting between the Hon. Minister of Finance, and the CANGO NGO Directors Forum is a critical step towards strengthening collaboration & cooperation of NGOs & the MoF. The CANGO board & members are grateful for the Hon. Ministers active participation & engagement. In line with CANGOs strategic objective of establishing & strengthening strategic relationships, the CANGO Board will continue meaningfully engaging the MoF on a range of issues which are of national importance.