MercoPress. South Atlantic News Agency

Paraguay: President Peña signs into law controversial bill on NGOs

The measure has drawn criticism from the opposition

Paraguayan President Santiago Peña signed into law on Thursday the controversial bill creating a regulatory framework for Non-Government Organizations (NGOs), providing for their control, transparency, and accountability. The measure is also referred to as the “anti-NGO club law.”

Approved in Congress over a year ago, it has drawn strong criticism from international organizations, political opposition, and legal experts who warn it could be used by the ruling Cartista group to stifle dissent and target those critical of the government.

International political analysis firms, including the Economist Intelligence Unit (EIU) and Oxford Analytica, have expressed concern that the law restricts the freedom of action for NGOs and signals a “shift toward authoritarianism” in the South American country.

The Special Rapporteurship for Freedom of Expression (RELE) of the Inter-American Commission on Human Rights (IACHR) also voiced concern, stating that the law's application will “hinder and restrict” the functioning of non-profit entities, urging the government to adhere to inter-American human rights standards.

Prominent jurist Manuel Riera argued that the law's true objective is to “kill by starvation” civil society organizations that monitor government corruption. He highlighted that by subjecting private funds to state control, the law encroaches upon a private sphere where public activity should not interfere.

Under the new norm, NPOs must register or update their data within 30 to 90 days after the necessary administrative system (SIARA) is operational.

Organizations must also submit an annual report by June 30 of each fiscal year detailing activities, finances, personnel, as well as a full balance sheet (Forms A through E).

Failure to comply can result in a warning and subsequent suspensions of activity lasting between three and six months. Directors of organizations suspended three times face ineligibility to hold leadership positions for up to five years.

Riera noted that the severe sanctions for individuals, including written warnings and up to five years of ineligibility for office in the event of recurrence, create a “disincentive” for people to work with NPOs. The regulation does, however, include provisions to respect existing rules on the treatment of sensitive data.