NATIONAL ASSEMBLY POISED TO SILENCE INDEPENDENT

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000471 SIPDIS HQSOUTHCOM ALSO FOR POLAD EMBASSY BOGOTA FOR REF CORD (SHIGGINS) DEPARTMENT PASS TO AID/OTI (RPORTER) DEPARTMENT PASS TO DRL (SMOODY) E.O. 12958: DECL: 04/15/2029 TAGS: PGOV PHUM PREL KDEM SNAR PREF VE SUBJECT: NATIONAL ASSEMBLY POISED TO SILENCE INDEPENDENT NGOS REF: 06 CARACAS 01634 CARACAS 00000471 001.2 OF 002 Classified By: POLITICAL COUNSELOR FRANCISCO FERNANDEZ, REASON 1.4 (D) ¶1. (C) Summary. The National Assembly is reportedly poised to pass a revived version of the 2006 Law on International Cooperation. If promulgated in its current form, the law would severely limit the ability of foreign donors to support development, human rights, counternarcotics, and pro-democracy NGOs in the country. Under the proposed bill, NGOs would only be allowed to operate with prior approval of the Government of the Bolivarian Republic of Venezuela (GBRV),and all international funding would be managed and distributed directly by the GBRV. All NGO activities, funding sources, and even internal private records would be subject to public scrutiny. The GBRV could selectively enforce such a law to try to shut down USG support for local NGOs, especially DRL, NAS, USAID, and PAS partners. End Summary. -------------- National Assembly Considers NGO Law -------------- ¶2. (C) Civil society NGOs in Venezuela are raising serious concerns over the potential passage of a law that would give the GBRV wide powers to register and regulate NGOs working in Venezuela. The Law on International Cooperation, originally proposed over three years ago, was approved once in the National Assembly on June 13, 2006 (Note: Bills must be passed twice in the National Assembly before being passed to the Executive Branch for promulgation. End Note). In coordination with the USG, EU governments and the Canadian government expressed concerns about the law, and the National Assembly mothballed the draft at that time. National Assembly President Cilia Flores included the International Cooperation Law among her priorities for the legislature's 2009 session. The yet unpublished final bill is rumored to be virtually identical to the 2006 version. As such, the National Assembly could move very quickly to adopt the measure without requiring any additional public hearings. NGO leaders fear that this legislation could be passed as early as the week of April 20. ¶3. (C) The law, if passed, will broadly and vaguely define international cooperation and foreign financing, requiring that any and all donations from abroad be "managed" and "distributed" directly by the Government of the Bolivarian Republic of Venezuela (GBRV). The bill would also create a new government entity to manage any international cooperation with NGOs. In addition, all foreign groups interested in supporting Venezuelan NGOs would be required to register with the body, provide it with any and all information on demand, and route all funding through that entity (Reftel). Should the law successfully be passed, only GBRV approved and "registered" NGOs would be permitted to operate in the country. Older, more established NGOs expressed concern that with over 20,000 organizations potentially subject to new registration requirements, the GBRV could prevent any NGO critical of the GBRV from reopening. -------------- Freedom of Association Threatened -------------- ¶4. (C) Under the proposed law, any foreign groups interested in supporting Venezuelan civil society would also be required to register with the Government. NGOs fortunate enough to receive government registration would immediately be subject to restrictive regulations obliging them to share any and all information regarding financing, operations, and activities with any private citizen who requests access to internal records. The GBRV could selectively apply the law, preventing many NGOs with a history of working with the USG and like-minded nations from being registered. Local NGOs that partner with USAID, NAS, PAS, and DRL in Venezuela could be jeopardized. ¶5. (C) Pro-democracy and human rights NGOs COFAVIC, PROVEA and Sinergia briefed the diplomatic corps April 14 on the negative consequences the proposed International Cooperation law would have on civil society. A UNHCR representative also expressed concern about the effect this proposed law would CARACAS 00000471 002.2 OF 002 have on Colombian Refugees living in the border regions of Venezuela. The representative noted that five UNHCR refugees had been assassinated and expressed concern that the public scrutiny provisions of the law would destroy UNHCR's ability to protect refugees. According to a leading representative from a well respected human rights NGO, the Government will be able to pick and choose which NGOs to register, giving clear preference to pro-government NGOs and silencing independent organizations. Liliana Ortega from Cofavic expressed fear that the GBRV may try to apply the law retroactively, affecting even currently funded programs. -------------- NGOs Call for International Pressure -------------- ¶6. (C) With the legislation ready for a second reading and a final vote at the National Assembly possibly days away, Venezuelan civil society leaders are seeking an international campaign to persuade the GBRV not to pass the International Cooperation law. Pro-democracy and human rights NGOs are hopeful that both the European Union and Canada can rally their respective capitals in the next few days to raise the issue. Human rights activist Liliana Ortega urged the USG to raise the issue at the upcoming Summit of the Americas. While Canadian and European diplomats in Caracas have expressed concern about the proposed law privately to us, they have not given any indication that their capitals intend to raise this issue with the GBRV, as they did in 2006. ¶7. (C) Comment: The International Cooperation law appears to be part of President Chavez's efforts to further consolidate control following his February 15 referendum victory eliminating term limits. Venezuelan human rights and civil society NGOs are highly dependent on international, including USG, funding. The proposed law will virtually eliminate the political autonomy of Venezuelan NGOs. Leading pro-democracy and human rights NGOs might not receive future GBRV registration as required under the proposed bill or even be allowed to continue to operate in the country should the law be passed. Just as Chavez has chosen to use selective prosecution of opposition members, he could use the Law on International Cooperation to shut down any and all NGOs critical of his government. Moreover, implementing USAID, DRL, NAS, and PAS programs with local partners will become even more challenging. End Comment. CAULFIELD