Welfare groups told to improve governance
Welfare agencies should set up performance benchmarks for corporate governance and transparency, a business leader says.
The call, by MTR Corporation chairman Raymond Chien Kuo-fung, comes after the government ended its tide-over grants to 165 welfare agencies in March and switched to a lump-sum funding system. The new system has drawn criticism from agencies, which have accused the government of passing on its financial responsibilities to the welfare sector.
Speaking at a forum titled 'Leading NGOs in the Time of Change' organised by the Social Welfare Department at the World Trade Centre in Causeway Bay yesterday, Dr Chien said that 'to maintain sustainability, welfare agencies should make themselves more accountable and transparent'.
'There are international accounting standards for business sectors ... It may not be easy for welfare agencies to set up a mechanism to assess their work in a quantifiable and measurable manner, but it does not mean that the agencies should not do it,' Dr Chien said.
In April, the department commissioned a private company to conduct training classes for the agencies to improve their financial, fund-raising, corporate governance and staff management skills. A total of 103 agencies have completed the course so far.
Director of Social Welfare Paul Tang Kwok-wai did not comment on the standard of corporate governance in agencies but said they were making improvements and changing their culture.
'Agencies have to meet our service standards before they can bid for funding to carry out new services. However, internal matters such as staff management have to be handled by the agencies. What the department has been trying to promote is better corporate governance and financial management,' Mr Tang said.
Dr Chien said the agencies should clearly identify their stakeholders - donors and service users - while the boards of directors needed to receive timely and accurate information from the management.
'Instead of simply taking the reports from the management, board members should observe the situation at the frontline and spend more time in direct communications with service users,' he said, adding that this did not imply the board did not trust management.
Meanwhile, Andy Lau Kam-kwok, chairman of Tung Wah Group of Hospitals, one of the city's largest and oldest charities, said the organisation had commissioned a private consultant in May to conduct a review aimed at improving corporate governance.
'We had a review in 1994, but we believe we need another this year to improve risk management and maintain a balance between our different stakeholders, including our service users, donors and our partners,' Mr Lau said.
