The Ortega regime introduced before the National Assembly—controlled by regime operators and collaborationist deputies— a bill to change the legal status of 29 civil entities, turning them from Non-Profit Organizations (NPOs), to commercial companies.
The legislative initiative was filed by the political operator of the dictatorship and president of the National Assembly, Gustavo Porras. The legislator, sanctioned by the United States, in his statement of reasons, points out that these civil entities were created as non-profit associations, but that in practice they operate as commercial companies.
Most of the organizations included in this list operated as small finance companies that grant flexible loans to low-income sectors.
The blueprint is called Special Law for the Change of Legal Regime of Non-Profit Organizationseither. The organizations affected by the change are:
- Association for the Promotion of the Development of Nicaragua
- Jinotega Global Village Project Association
- Martin Luther King Association
- Association of Opportunity and Economic Development of Nicaragua
- Center for the Promotion of Local Development and Overcoming Poverty
- Association Fund of the Nicaraguan Development Institute
- Women and Community Economic Development Foundation
- Foundation for the Development of Women
- Foundation for Rural Socio-Economic Development
- Foundation for the Development of the Atlantic Coast
- Nicaraguan Fund Association for Community Development
- Foundation for the Development of Nueva Segovia
- Leon 2000 Foundation
- Foundation for the Promotion and Development
- Local Development Fund Association
- Foundation for the Support of Microenterprises (FAMA)
- Foundation for Research and Development and Support for National Microenterprises
- Association Peoples in Community Action
- Joseph Nieborowski Foundation
- Foundation for Promotion and Local Development
- Foundation for Research and Development of the City of El Rama
- Esperanza del Jicaral Peasant Development Association
- Research Promotion and Advisory Center for the Agricultural Sector
- Foundation for Small, Medium and Microenterprises
- Association for Integral Development San Isidro de Chacaraseca
- Association for Economic Development with Equity
- pro-woman
- The Neo Foundation
Regulate civil associations that provided loans
“The purpose of this law is to establish the procedure for changing the legal regime of entities whose activity is to provide financial or microfinance services, all in accordance with the law on the matter and that were constituted under the figure of association or foundation without for profit”, cites the text of the bill.
“The commercial companies created are successors without continuity solution to the corresponding non-profit associations or foundations and can continue their economic activity, complying with the constitutional concept of freedom of enterprise,” it adds.
Upon changing their status as NPOs, the registrations of these organizations with the Ministry of the Interior will be canceled and in order to continue operating, they will have to register as commercial companies with the financial entities that regulate this type of operation.
The initiative makes an exception in the case of Promujer and The Neo Foundation: “Due to their status as foreign legal entities, the General Directorate of Registration and Control of Non-Profit Organizations of the Ministry of the Interior will proceed to cancel them in the corresponding registry” , referring to the registry of foreign civil companies.
A similar initiative was filed last May, to transform the legal status of five social clubs, and they were registered as commercial companies. These clubs are: the Nicaraguan Spanish Association, the Terraza Club Association, the Nejapa Country Club Association, the Chinandega Country Club and the Cocibolca Equestrian Center Association (Asoceco).
The regime of Daniel Ortega and Rosario Murillo accumulates to date 2681 civil organizations, national and foreign, eliminated since 2018. However, of this total, 2,607 have been canceled between January 19 and November 4, 2022.
The United Nations calls on the regime
The United Nations Human Rights Committee (CCPR, for its acronym in English), made extensive observations on the fourth periodic report presented by Nicaragua, analyzed in the review on October 19, 2022.
The Committee issued 17 recommendations on different issues, including: the independence of the Judiciary, deaths due to police violence, the situation of prisoners in Nicaraguan prisons, freedom of expression, violence against women, the situation of indigenous peoples and freedom of association.
On this last point, the Committee said that the State of Nicaragua it must “refrain from canceling the legal personalities of civil society organizations, including human rights organizations, opposition groups and professional associations; between these medical associations, universities and entities linked to the Catholic Church; for legitimately exercising their rights and adopting all the necessary measures to re-establish these organizations and return their assets to them.”
