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Record Keeping and Property Rights in Nicaragua: A Minefield of Corruption and Uncertainty

A Complex Web of Corruption and Uncertainty

Managua, Nicaragua - Investors considering property investment in Nicaragua are warned to exercise extreme caution due to a complex web of corruption and uncertainty surrounding record keeping and property rights. The government’s lack of transparency and accountability has created an environment where false accusations, expropriation, and forced surrender of properties are common.

Lack of Transparency and Accountability

According to recent reports, President Ortega has declared that the government will not intervene in land disputes, leaving property owners vulnerable to exploitation by corrupt officials and organized crime groups. The situation is further complicated by a lack of reliable record keeping, making it difficult for investors to verify property ownership and secure their investments.

Corruption Plagues the Property Market

The country’s property market is plagued by corruption, with many properties being sold without proper documentation or titles. This has led to disputes and conflicts over land ownership, often resulting in the forced eviction of property owners.

International Criticism

The Nicaraguan government’s lack of transparency and accountability has also been criticized by international organizations. The US Department of State’s Investment Climate Statement 2017 warned that corruption is a significant obstacle to investment in Nicaragua, citing instances of bribery, embezzlement, and other forms of corruption.

  • The World Bank’s Doing Business 2017 report ranked Nicaragua 143rd out of 189 countries in terms of ease of doing business, citing issues with property registration and enforcement of contracts.

Local Perspective

“The situation is a nightmare for investors,” said a local businessman who wished to remain anonymous. “You can’t trust anyone, and even if you have the right documents, there’s always someone looking to take advantage of you.”

Chilling Effect on Civil Society

The lack of transparency and accountability has also had a chilling effect on civil society, with many organizations facing harassment and intimidation from the government.

  • “The media is heavily censored, and any criticism of the government is met with swift retribution,” said a local journalist. “It’s a very difficult environment to operate in, and many people are afraid to speak out.”

Advice for Investors

In light of these concerns, investors considering property investment in Nicaragua are advised to exercise extreme caution and thoroughly research any potential investments before committing.

Sources

  • US Department of State: Investment Climate Statement 2017
  • World Bank: Doing Business 2017
  • Bertelsmann Foundation: Transformation Index 2016
  • Freedom House: Freedom in the World 2016
  • Freedom House: Freedom of the Press 2016