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Powers of NGO Bureau—indefinite suspension of an NGO—Decision irregular due to lack of timeframes for the indefinite suspension.
The Applicant filed an application for judicial review to challenge the decision of the National Bureau for Non-Governmental Organizations (NGO Bureau) to indefinitely suspend its permit to operate as a Non-Governmental Organization (NGO). The Bureau had also ordered the Applicant to cease operations with immediate effect to enable it to conduct a comprehensive investigation in its operations. The Court found that the decision to indefinitely suspend the Applicant was irregular because of its indefinite nature yet it was intended to allow ‘comprehensive investigations into the Applicant’s operations.
The Applicant was issued with a permit to operate as an NGO on November 25, 2016, for 60 months. On August 18, 2021, the NGO Bureau made and communicated a decision to the effect that the NGO permit of the Applicant had been indefinitely suspended to enable the Bureau to conduct a comprehensive investigation into the operations of the Applicant, and that the Applicant should cease operations with immediate effect. The Bureau copied the Applicant’s bankers, the Financial Intelligence Authority, and Uganda Registration Services Bureau, directing them to halt all transactions with the Applicant. This decision was premised on the allegation that the Applicant had neglected to file its annual returns for the year 2020. The Applicant, being dissatisfied with the decision, filed an application for judicial review.
The major issue for determination was:
The Court held that the decision to indefinitely suspend the Applicant was irregular because of its indefinite nature yet it was intended to allow ‘comprehensive investigations into the Applicant’s operations. The Respondent was ordered to accord the Applicant a hearing and conclusively deal with the issues at hand justly and fairly.
The court reasoned that the Applicant proved that the indefinite suspension was irregular due to lack of any timeframe, yet it was intended to allow comprehensive investigations into the Applicant’s operations to enable the Bureau to determine whether or not to revoke the NGO permit and cancel registration.
The Court also reasoned that public functionaries should approach the decision-making process with an open mind. Reason and justice, and not arbitrariness, must inform every exercise of discretion and power conferred by statute.
The power to suspend the permit should be checked with a timeframe within which it must end to check its potential abuse. The action of the Respondent in suspending the Applicant’s permit indefinitely was irregular since it lacked a specific time frame, and it was not rationally justified.
This decision establishes an important precedent that clarifies the powers of the NGO Bureau to indefinitely suspend NGOs and sets clear guidelines on the processes that must be followed before the decision to suspend an NGO can be arrived at.
