SRFOE warns of bill limiting freedom of association in Paraguay

October 18, 2024

Washington D.C.- The Office of the Special Rapporteur for Freedom of Expression (RELE) of the Inter-American Commission on Human Rights (IACHR) expresses its concern over the approval of a bill whose application could hinder and restrict the operation of non-profit organizations in Paraguay. This Office urges the State, particularly the Executive Branch, to consider inter-American human rights norms and standards when analyzing the enactment or veto of this bill.

On October 9, the Senate of the Paraguayan Congress approved, with modifications made by the Executive, the bill “that establishes the control, transparency and accountability of non-profit organizations”. The norm would cover entities that receive or administer “public or private funds”, both national and international, and that seek to influence “public policies, plans and programs”, as well as “the activity of the State Powers” and other governmental entities.

The legislative initiative was presented on December 20, 2023 before the Chamber of Senators of the Paraguayan Congress, as the chamber of origin. After its approval last October 9, the bill is now being processed for enactment by the Executive Branch.

Article 12 of the bill stipulates that State entities may not “sign or execute agreements, loan agreements, donations or other legal instruments” with organizations that are not registered in the National Registry of Non-Profit Organizations. It also states that transfers of resources, goods and services must be “consigned in the General Budget of the Nation” and in that of the municipalities and other State agencies. According to civil society reports, this could threaten the autonomy and financing of human rights organizations, in addition to being used to silence political opponents and critics of the government.

The Rapporteurship warns that the bill introduces additional procedures and formalities to those already in place, which could generate excessive administrative burdens on organizations. Thus, for example, it establishes the creation of the National Registry of Non-Profit Organizations, in which all organizations included in the law, as well as foreign organizations operating in the country, must register (Article 7). In addition, the organizations are required to keep a record of the funds and assets they receive or administer, as well as the actions financed and executed with those resources, accompanied by their corresponding “legal vouchers” and other documents supporting the “use and destination” of the funds received (Article 8). They must also submit an “annual report” detailing the expenses of their activities, an accounting and balance sheet, and a list of all the professionals and entities, national or foreign, that have provided services to the organization during the corresponding period (Article 9). The imposition of such requirements could make it easier to obtain information on financial and operational aspects of the organizations, putting at risk the privacy and security of donors, beneficiaries and members of these organizations.

On the other hand, there is concern about the use of vague and ambiguous terms in the bill that could be interpreted to restrict the right to freedom of expression and association, contravening the standards of the Inter-American system, according to which any limitation to fundamental freedoms must be expressly, precisely and specifically provided for in the law. Thus, for example, it relates the identification of a non-profit organization with undefined concepts such as “public utility”, “social interest” and “cultural interest” (Article 2).

Finally, this Office points out that the sanctions for non-compliance with the obligations established in this bill and its complementary regulations could significantly restrict the operability of the organizations, with disproportionate sanctions, such as disqualification from holding office for up to five years and the suspension of the organization's activities for a period of three to six months. Furthermore, it warns about the absence of due process guarantees and adequate and effective remedies.

RELE recalls that freedom of association implies the right of organizations to establish their internal structure, activities and program of action without intervention by the authorities that restricts or hinders the exercise of this right. As the IACHR has noted, States must “promote and facilitate access by human rights organizations to both domestic and foreign financial cooperation funds, as well as refrain from restricting their means of financing,” as part of their obligations to respect and guarantee freedom of association. In addition, information requests to organizations must not exceed the limits of confidentiality necessary for their freedom of action and independence.

In view of the above facts, this Office recognizes the willingness of the Government to establish a dialogue on this project. In this context, the Office of the Special Rapporteur urges the State of Paraguay, particularly the Executive Branch, to take into account the aforementioned inter-American human rights norms and standards when evaluating the enactment or veto of this bill.

Additionally, the State is called upon to guarantee that any regulation on the functioning of civil society organizations complies with Inter-American standards on freedom of expression and association, as well as to adopt the necessary measures to ensure broad deliberation and participation of all sectors involved potentially affected by this regulation.

The Office of the Special Rapporteur for Freedom of Expression (RELE) is an office created by the Inter-American Commission on Human Rights (IACHR) to encourage the hemispheric defense of the right to freedom of thought and expression, considering its fundamental role in the consolidation and development of the democratic system.

No. R255/24

3:29 PM