In a major decision that is likely to have wide-ranging repercussions, the Ministry of Home Affairs (MHA) has cancelled the Foreign Contribution Regulation Act (FCRA) registration of Public Health Foundation of India (PHFI), barring it from receiving foreign funds. PHFI is a public-private initiative that aims to strengthen training, research and policy development in public health. The NGO was launched by the then Prime Minister Manmohan Singh in 2006.
The MHA order listed a six-point violation of the FCRA accusing the prominent NGO of misusing foreign funds by working with the anti-tobacco lobby.
The home ministry alleged PHFI had opened multiple accounts without disclosing it to the ministry, possessed two PAN cards and also misreported the foreign donations received in three years.
Notably, the PHFI has been collaborating with a range of institutions, including the Ministry of Health and Family Welfare and Bill and Melinda Gates Foundation, to improve public health in India and advance global public health.
Top ministry sources said the order cancelling the NGO's registration under the FCRA was served to PHFI last week.
Incidentally, the MHA had extended the FCRA registration of PHFI only in August last year, extending its validity till 2021.
PHFI President K Srinath Reddy, in his response to queries from THE WEEK, said the order has been received by his office. The NGO has replied to each issue flagged by the ministry, he said. He added he was unsure about what has changed between August 2016, when the FCRA registration was extended by the government, and now, when the registration was summarily cancelled without notice.
"We have requested a speedy review and hope there is a fair examination of the clarifications provided. We look forward to an early resolution ," Reddy said.
He said the Rs 43 crore grant, mentioned by the MHA as allegedly used for anti- tobacco lobbying, was in fact related to work involving HIV-AIDS control. The clarification has been submitted to the ministry, he said.
Reddy said undertaking 'anti-tobacco' projects was in line with the government's national health policy and several of these activities were in partnership with the health ministry and the WHO. “Dissemination of information about these projects does not mean lobbying for anyone," he emphasised. "We have been working jointly with the ministry of health and are fully aligned with the national health policy of the government and its programmes," he said.
Reddy also said the Income Tax department was aware of the two PAN cards, since the first one was erroneously issued listing it as a corporate entity rather than a society. "We applied for the new PAN card and after the second card was issued, the first one was surrendered,” he said.
A representative of PHFI told THE WEEK that the organisation had submitted the requisite information and documents to the MHA and provided necessary clarifications on the funds received that were fully accounted for.
"PHFI provides technical assistance to central and state governments in several areas of engagement including HIV prevention, access to drugs, tobacco control, immunisation, environmental health, universal health coverage, public health care development and capacity building of primary care physicians. All of these are in consonance with the objectives of the National Health Policy and serve public interest. Many of these activities were in partnership with the Ministry of Health and Family Welfare. PHFI would like to assure its partners and stakeholders that it will continue to focus its efforts on working towards a healthier India," the spokesman stated.
