Modi government puts Ford Foundation on Home Ministry watchlist; organisation denies wrongdoing

In a fresh crackdown on foreign fundings to NGOs, the Union Home Ministry has put the Ford Foundation of the USA on its "watch list" and ordered that all funds coming from the international organisation have to be routed only with its nod due to "national security concerns".

The Home Ministry said it has decided to keep a watch on all activities funded by Ford Foundation and by exercising the powers conferred under Section 46 of Foreign Contribution Regulation Act 2010, directed Reserve Bank of India to ensure that funds coming from it be brought to the notice of the Home Ministry.

"RBI is requested to instruct all the banks and their branches to ensure that any fund flow from the above mentioned agency to any person, NGO, organisation in India may be brought to the notice of the (Home) ministry so that funds are allowed to be credited into the accounts of the recipient only after clearance of of this ministry," the order said.

The Ministry said it wanted to ensure that funds coming from Ford Foundation is utilised for "bonafide welfare activities without compromising on concerns of national interest and security".

The move came after Gujarat government asked the Home Ministry to take action against Ford Foundation as it alleged that the US-based organisation was "interfering in the internal affairs" of the country and also "abetting communal disharmony" through an NGO run by social activist Teesta Setalvad.

There have been allegations that the recipient NGOs have not filed mandatory annual reports and balance sheets with the government.

The Home Ministry in its order also said that government organisations can avail of foreign funding from Ford Foundation only with the clearance of the Department of Economic Affairs.

"Any instance of government organisation receiving funds directly from this agency may be withheld and brought to the notice of this Ministry," the order said.

Early this month, the Home Ministry has frozen seven bank accounts of Greenpeace India and barred it from receiving foreign funds for allegedly violating FCRA and "prejudicially" affecting the country's public and economic interests.

Meanwhile, according to NDTV, Ford Foundation in a statement said that it had not received any communication from the government of India, and issued this statement:

Ford Foundation

In light of recent communication from the Ministry of Finance, our nodal ministry in the Government of India, the Ford Foundation has officially learned that the Ministry of Home Affairs is reviewing information related to their ongoing investigation of Sabrang Communications and Publishing Pvt Ltd. We have not been contacted directly by MHA and have no information about latest news reports. Over many decades, the foundation has built strong relationships with the people, institutions, and governments of India, and has contributed to the remarkable growth and development of the nation. We have been and continue to be deeply respectful of the laws of the land and, therefore, of the process now underway. As the current inquiry progresses we will continue to respond fully to official queries directed to us. We are confident in our work and compliance with the law and look forward to the outcome of this inquiry. If the Government suggests methods by which we can strengthen and improve our grant-making processes, we will take appropriate steps to incorporate them. As a charitable foundation with a global presence, everything we do is transparent and readily available on our web site, fordfoundation.org and in the public domain. This information includes highlights from across our history both in India and globally.