This paper will examine the challenges of transparency and accountability in the relationship between non-profit companies (NPC) in the Gaza Strip (GS) and their overseeing authorities, in light of the legislative developments occurring to the legal framework governing this sector. Specifically, the Decree Law No. (42) of 2021 on companies, the Non-Profit Companies Regulation No. (20) of 2022, and the amended Regulation No. (14) of 2025. The paper aims to analyze the effects of this legal and administrative system on the work environment of NPCs in the GS. It will also identify the gap between the legal texts and actual practice, and examine the impact of all this on the principles of transparency and accountability.
This paper relied on the descriptive-analytical approach by analyzing relevant legislation, reviewing legal and human rights literature, and conducting in-depth interviews with a legal expert and several directors of NPCs operating in the GS, in order to track the practical challenges these companies face in obtaining funds and projects’ implementations. In addition, the researcher also conducted an interview with the Companies Registrar at the Ministry of National Economy (MoNE) in Ramallah. The aim of the interview was to understand his perspective, as the relevant authority, regarding fund approval procedures and the governing administrative system, as well as the challenges raised by the companies. Furthermore, we obtained the viewpoints of main parties involved, which contributed to more balance and objectivity in analyzing the paper's results.
The paper concluded that the main problem is not the existence of the government oversight system per se, but in the transformation of this oversight into a wide system of pre-approvals (i.e., numerous parties involved in the decision-making). It is also in the lack of transparency in the approval process, and weak accountability and grievance safeguards. These issues led to prolonging procedures, increased the uncertainty for these companies, and delayed the arrival of funding, hence negatively affecting the ability of these bodies to carry out their programs, especially in GS given the exceptional circumstances there. Also, according to the researcher, the legal texts aren’t the only reason for some of these challenges, some have been attributed to administrative practices that went beyond the system's provisions, through procedures that became daily routine.
To address this gap, it is recommended that provisions of the non-profit companies’ law be revisited and revised to include: Limiting approval procedures to the authorities specified by law, adding provisions that regulate the right to appeal and challenge administrative decisions, acknowledge legal effects concerning delay of decisions within the specified timeframes, and review restrictions related to salaries and operating expenses. The paper also suggested creating an online platform that operates under the “single window” concept to track requests and boost transparency, in away that balances between legitimate oversight requirements protection of NPCs rights and their ability to carry out their developmental and human rights roles.
