the power to freeze assets is within the ambit of Article 6(1) (l) of the CSO Proclamation
which vests the Agency with the power to “carry out such other activities necessary for
the attainment of its objectives.”
10. The first Complainant appealed to the Federal High Court against the Board’s
decision. The appeal challenged the Board’s factual findings and interpretation of
various provisions of the relevant law and regulations. The Federal High Court found
that there was no error of law and consequently upheld the decision of the Board.
Among others, the Court held that the first Complainant could not transfer the funds
collected from foreign sources to its new status as re-registered because in terms of
Article 18(2) of the Council of Ministers Regulations a foreign or Ethiopian Resident
charity that converts to an Ethiopian charity or society shall not transfer the assets that
are from foreign sources to the converted charity or society. The Court also held that the
CSO Agency properly invoked and used the power to freeze assets because the first
Complainant had contravened the law.
11. The first Complainant lodged a further appealed to the Cassation Bench of the
Federal Supreme Court against the decision of the Federal High Court. On 19 October
2012 the Cassation Bench of the Federal Supreme Court upheld the decision of the
Federal High Court.
12. The Complainants aver that several provisions of the CSO Proclamation
contravene the Charter. Among others, Article 88(1) of the CSO Proclamation provides
that organisations working on seven rights-based themes cannot receive more than 10%
of their funding from international sources. Further, 70% of the annual budget must be
allocated to program activities, and 30% for administrative costs. By Article 98(1), all
domestic fundraising activities must be permitted by the CSO Agency. Article 77(3)
prohibits anonymous donations and requires information clearly identifying all
benefactors of charities and societies, members’ details and donors, to be submitted to
the Government. The CSO Agency has broad discretionary powers to interfere in the
organisational and administrative affairs of charities and societies. For example, under
Article 85 of the CSO Proclamation it can enter premises of any charity or society
without a court warrant to search the property, take away original documents and
interrogate employees. The CSO Agency can also take all necessary measures for
purposes of attaining its objectives. The Complainants cite several other provisions of
3|Page