Proclamation to Determine the Administration of Non-governmental Organizations, No. of 145 of 2005

(a) quarterly project progress reports; and

(b) annual progress reports by January of the coming year; (4) submit to the Ministry within four months after the financial year, an annual financial report drawn by an independent audit firm, showing a detailed record of money received and spent on administration and beneficiaries; (5) ensure, in the ever unfailing effort to maxuruze relief and rehabilitation support to beneficiaries, that overhead costs never exceed ten (10%) percent of the over all budget; (6) ensure that foreign exchange dealings and transactions are executed through the banks of Eritrea in accordance with the law; (7) ensure that the procurement of goods and services is effected with transparency and competitively; (8) regarding the recruitment of employees: (a) submit to the Ministry a document establishing the appointment of a person as the representative of the International NGO; (b) ensure that a foreign representative or an employee or volunteer worker of an international NGO holds a work permit;

(c) ensure that vacant posts are filled with priority to Eritrean citizens and ascertain that the rights of recruited employees are observed pursuant to the provisions of Labour Proclamation No 118/2001;

(d) ensure where vacant posts are filled by Eritrean citizens that the said citizens have satisfied their national duties and hold official discharge papers;

(e) present to the Ministry evidence of efforts made to fill vacant posts where adequate Eritrean labour is not available; and

(f) ensure that a foreign professional enters Eritrea after obtaining a visa through the Ministry of foreign Affairs where the Ministry decides after verifying the level of education and experience of the said professional on whose behalf a request has been submitted; (9) pay taxes and/or duties on all goods which they import into Eritrea; 5 (10) ascertain that an employee pays income tax on income earned from employment; (11) immediately report to the Ministry criminal offences such as theft or embezzlement committed against them by their employees and be responsible for liability incurred by their employees in the discharge of their duties; and (12) where they terminate their activities for different reasons: (a) settle their debts and the claims of employees and report the same to the Ministry; and (b) hand over to the Ministry programs or projects in progress and property held. PART FOUR Activities of NGO's Article-7: Scope of Activities of NGO's (1) The activities of every NGO shall be limited to relief and/or rehabilitation works. (2) Any NGO wishing to change programs may do so only after applying to the Ministry in writing and obtaining approval for the same. (3) The permit of any NGO which violates the provisions of this Proclamation or engages in activities outside relief and/or rehabilitation work and, in particular, in political or economic sabotage or subversive activities against the State of Eritrea or Eritrean national interests shall be revoked and the representatives or employees of such NGO responsible for such illegal activities on behalf of the NGO shall be held liable under the relevant provisions of the Penal Code of Eritrea. (4) Notwithstanding the provisions of sub-Article (1) hereof, any NGO or other agency desiring to engage in development work as a development partner in Eritrea in any sector of the economy can do so by concluding an agreement with the concerned ministry or agency. 6 Article -8: Activities of Local NGO's (1) Local NGO's may be authorized to engage m relief and/or rehabilitation work if: (a) they prove that they have been incorporated and registered as non-profit associations to engage in relief and/or rehabilitation work pursuant to the provisions of Articles 404-482 of the Transitional Civil Code of Eritrea; (b) they are ready to work within the scope of relief and/or rehabilitation policies and priorities in cooperation with the Government of Eritrea; and (c) they establish that they have at their disposal in Eritrea one million US Dollars or its equivalent in other convertible currency, or technical or other capacity amounting to it, in order to enable them launch small-scale work aiming towards the achievement of their objectives. (2) Local NGO's shall be accountable to donors, the Ministry, other Government entities and beneficiary communities. (3) The utilization, distribution and implementation of financial and in- kind support, collected locally or from abroad for relief and/or rehabilitation work shall satisfy programs and directives issued by the Ministry in consultation with the beneficiary communities. (4) A beneficiary community shall participate in the distribution of relief and rehabilitation aid or support. (5) No Local NGO may engage in relief and/or rehabilitation work with funds earmarked to Eritrea by the United Nations or its affiliates or through bilateral agreements. (6) Local NGO's shall immediately declare publicly and officially inform the Ministry on all donations made. Article -9: Activities of International NGO's (1) No international NGO may engage in Eritrea in relief and/or rehabilitation work except through the Ministry or other concerned Government entity. 7 (2) Notwithstanding the provisions of sub-Article ( 1) hereof, where the Ministry or the concerned Government entity cannot carry out the task or where any other serious cause justifies it, an international NGO may directly engage in the activity by agreement. (3) The provisions of Article 8(2) to (6) hereof shall also be applicable to, or as the case may be, in the case of international NGO's. (4) The programs of international NGO's shall contain institutional capacity building and training components. (5) International NGO's shall prove that they have at their disposal in Eritrea two million US Dollars or its equivalent in other convertible currency, or technical or other capacity amounting to it, in order to enable them launch small-scale work aiming towards the achievement of their objectives. PART FIVE Miscellaneous Provisions Article-IO: Registration (1) NGO's shall submit the following information for registration: (a) legal documents pertaining to its Grganization and operations; (b) books and registers of their financial accounts and their fixed or movable assets; (c) documents that ascertain the availability of monetary or other capacity equivalent to it, as stipulated in Articles-9 (1) (c) and 10 (5) for initial engagement in work activities; (d) a written application clarifying the reasons for engaging in relief and/or rehabilitation work and the type of activity they wish to engage in and providing background information. (2) All NGO's shall register anew on the basis of the provisions of this Proclamation. They shall also renew their registration annually. Article-11: Appeal (1) An NGO aggrieved by a decision of the Ministry rejecting its Application to register and engage or renew registration in relief and/or rehabilitation work in Eritrea may appeal to the High Court within thirty (30) days from the date of the rendering of the decision. 8 (2) The decision of the High Court shall be final. Article -12: Transfer of Assets and Liabilities All assets, liabilities and rights of the Eritrean Relief and Refugee Commission are hereby transferred to the Ministry of Labour and Human Welfare. Article -13. Power to Issue Regulations The Minister may issue regulations for the better implementation of the provisions of this Proclamation. Article-14: Effective Date This Proclamation shall enter into force as of the date of its publication in the Gazette of Eritrean Laws. Done at Asmara, this 11 th day of May, 2005 Government of Eritrea. 9