Congressional Record, Volume 162 Issue 143 (Wednesday, September 21, 2016)

[Congressional Record Volume 162, Number 143 (Wednesday, September 21, 2016)]
[House]
[Pages H5779-H5782]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

NICARAGUAN INVESTMENT CONDITIONALITY ACT (NICA) OF 2016

Mr. ROYCE. Mr. Speaker, I ask unanimous consent that the Committee on
Foreign Affairs and the Committee on Financial Services be discharged
from further consideration of the bill (H.R. 5708) to oppose loans at
international financial institutions for the Government of Nicaragua
unless the Government of Nicaragua is taking effective steps to hold
free, fair, and transparent elections, and for other purposes, and ask
for its immediate consideration in the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
The text of the bill is as follows:

H.R. 5708

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Nicaraguan Investment
Conditionality Act (NICA) of 2016''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) In 2006, Nicaragua, under President Enrique Bolanos,
entered into a $175,000,000, 5-year compact with the
Millennium Challenge Corporation (MCC).
(2) After the 2008 municipal elections, the MCC stated that
there was a pattern of decline in political rights and civil
liberties in Nicaragua.
(3) In 2009, the MCC terminated the compact and reduced the
amount of MCC funds available to Nicaragua by $61,500,000,
which led to the compact ending in 2011.
(4) According to Nicaraguan law, the National Assembly is
the only institution allowed to change the constitution but
in 2009, Daniel Ortega circumvented the legislature and went
to the Supreme Court, which he controls, to rule in his favor
that Presidential term limits were inapplicable.
(5) The House Committee on Foreign Affairs convened a
congressional hearing on December 1, 2011, entitled
``Democracy Held Hostage in Nicaragua: Part 1'' where former
United States Ambassador to Nicaragua Robert Callahan
testified, ``First, that Daniel Ortega's candidacy was
illegal, illegitimate, and unconstitutional; second, that the
period leading to the elections and the elections themselves
were marred by serious fraud; third, that Daniel Ortega and
his Sandinista party have systematically undermined the
country's fragile governmental institutions''.
(6) From fiscal year 2012 until present, the Department of
State found that Nicaragua did not meet international
standards of fiscal transparency.
(7) On January 25, 2012, a press statement from Secretary
of State Hillary Clinton said: ``As noted by international
observers and Nicaraguan civil society groups, Nicaragua's
recent elections were not conducted in a transparent and
impartial manner, and the entire electoral process was marred
by significant irregularities. The elections marked a setback
to democracy in Nicaragua and undermined the ability of
Nicaraguans to hold their government accountable.''.
(8) According to the Department of State's 2015 Fiscal
Transparency Report: ``The government does not publicly
account for the expenditure of significant off-budget
assistance from Venezuela and this assistance is not subject
to audit or legislative oversight. Allocations to and
earnings from state-owned enterprises are included in the
budget, but most state-owned enterprises are not audited. The
supreme audit institution also does not audit the
government's full financial statements. Nicaragua's fiscal
transparency would be improved by including all off-budget
revenue and expenditure in the budget, auditing state-owned
enterprises, and conducting a full audit of the government's
annual financial statements and making audit reports publicly
available within a reasonable period of time.''.
(9) According to the Department of State's Country Reports
on Human Rights Practices for 2015: ``In 2011 the Supreme
Electoral Council (CSE) announced the re-election of
President Daniel Ortega Saavedra of the Sandinista National
Liberation Front (FSLN) in elections that international and
domestic observers characterized as seriously flawed.
International and domestic organizations raised concerns
regarding the constitutional legitimacy of Ortega's re-
election. The 2011 elections also provided the ruling party
with a supermajority in the National Assembly, allowing for
changes in the constitution, including extending the reach of
executive branch power and the elimination of restrictions on
re-election for executive branch officials and mayors.
Observers noted serious flaws during the 2012 municipal
elections and March 2014 regional elections.''.
(10) According to the Department of State's Country Reports
on Human Rights Practices for 2015 in Nicaragua: ``The
principal human rights abuses were restrictions on citizens'
right to vote; obstacles to freedom of speech and press,
including government intimidation and harassment of
journalists and independent media, as well as increased
restriction of access to public information, including
national statistics from public offices; and increased
government harassment and intimidation of nongovernmental
organizations (NGOs) and civil society organizations.''.
(11) The same 2015 report stated: ``Additional significant
human rights abuses included considerably biased policies to
promote single-party dominance; arbitrary police arrest and
detention of suspects, including abuse during detention;
harsh and life-threatening prison conditions with arbitrary
and lengthy pretrial detention; discrimination against ethnic
minorities and indigenous persons and communities.''.
(12) In February 2016, the Ortega regime detained and
expelled Freedom House's Latin America Director, Dr. Carlos
Ponce, from Nicaragua.
(13) On May 10, 2016, the Supreme Electoral Council
announced and published the electoral calendar which aims to
govern the electoral process.
(14) After receiving the electoral calendar for the 2016
Presidential elections, the Nicaraguan political opposition
raised concerns and pointed to a number of anomalies such as:
the electoral calendar failed to contemplate national and
international observations, failed to agree to publicly
publish the precincts results of each Junta Receptora de Voto
(JRV), and failed to purge the electoral registration rolls
in a transparent and open manner.
(15) Nicaragua's constitution mandates terms of 5 years for
municipal authorities,

[[Page H5780]]

which would indicate that the next municipal elections must
occur in 2017.
(16) On June 3, 2016, the Nicaraguan Supreme Court--which
is controlled by Ortega--instructed the Supreme Electoral
Council not to swear in Nicaraguan opposition members to the
departmental and regional electoral councils.
(17) On June 5, 2016, regarding international observers for
the 2016 Presidential elections, Daniel Ortega stated:
``Here, the observation ends. Go observe other countries . .
. There will be no observation, neither from the European
Union, nor the OAS . . .''.
(18) On June 7, 2016, the Department of State's Bureau of
Democracy, Human Rights and Labor posted on social media:
``Disappointed government of Nicaragua said it will deny
electoral observers requested by Nicaraguan citizens, church,
and private sector . . . We continue to encourage the
government of Nicaragua to allow electoral observers as
requested by Nicaraguans.''.
(19) On June 8, 2016, the Supreme Electoral Council--which
is controlled by Ortega--announced a ruling, which changed
the leadership structure of the opposition party and in
practice allegedly barred all existing opposition candidates
from running for office.
(20) On June 14, 2016, Daniel Ortega expelled three United
States Government officials (two officials from U.S. Customs
and Border Protection and one professor from the National
Defense University) from Nicaragua.
(21) On June 22, 2016, a Global Fellow from the Woodrow
Wilson Center chose to leave Nicaragua because of fear.
According to a media report, the fellow stated ``Police were
following me. I did not understand the reason why they were
following me, but it was clear to me what they were doing . .
. Of course (I felt fear), I was surprised especially because
the research I am doing is completely academic, not
journalistic, and that made me wonder why they would be so
interested in something like that.''.
(22) On June 29, 2016, the Department of State issued a
Nicaragua Travel Alert which stated: ``The Department of
State alerts U.S. citizens about increased government
scrutiny of foreigners' activities, new requirements for
volunteer groups, and the potential for demonstrations during
the upcoming election season in Nicaragua . . . Nicaraguan
authorities have denied entry to, detained, questioned, or
expelled foreigners, including U.S. government officials,
academics, NGO workers, and journalists, for discussions,
written reports or articles, photographs, and/or videos
related to these topics. Authorities may monitor and question
private U.S. citizens concerning their activities, including
contact with Nicaraguan citizens.''.
(23) On June 30, 2016, the Human Rights Foundation issued a
press release stating: ``. . . Daniel Ortega has used all
sorts of trickery to push for constitutional reforms and
illegal court rulings in order to extend his time in power
indefinitely . . . If the opposition is not allowed to
meaningfully compete, the upcoming elections in Nicaragua
cannot be considered free and fair and the Inter-American
Democratic Charter should be applied to the Sandinista
regime.''. The release continued, stating that ``The
principle of alternation of power is enshrined in the Inter-
American Democratic Charter (IADC) as an essential element of
democracy. Even though Ortega pushed through a constitutional
amendment allowing for indefinite re-election, he did so by
circumventing the separation of powers illegally. An
uncontested re-election of Ortega would clearly violate the
IADC, which was signed by Nicaragua in 2001. If that is the
case, Secretary General Almagro should activate the IADC and,
if necessary, call for the suspension of Nicaragua from the
OAS.''.

SEC. 3. STATEMENT OF POLICY.

It is the policy of the United States to support--
(1) the rule of law and an independent judiciary and
electoral council in Nicaragua;
(2) independent pro-democracy organizations in Nicaragua;
and
(3) free, fair, and transparent elections under
international and domestic observers in Nicaragua in 2016 and
2017.

SEC. 4. INTERNATIONAL FINANCIAL INSTITUTIONS.

(a) In General.--The President shall instruct the United
States Executive Director at each international financial
institution to use the voice, vote, and influence of the
United States to oppose any loan or other utilization of the
funds of the respective institution for the benefit of the
Government of Nicaragua, other than to address basic human
needs or to promote democracy, unless the Secretary of State
certifies and reports to the appropriate congressional
committees that the Government of Nicaragua is taking
effective steps to--
(1) hold free, fair, and transparent elections overseen by
credible domestic and international electoral observers;
(2) promote democracy, as well as an independent judiciary
system and electoral council;
(3) strengthen the rule of law; and
(4) respect the right to freedom of association and
expression.
(b) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs, the Committee on
Appropriations, and the Committee on Financial Services of
the House of Representatives;
(B) the Committee on Foreign Relations, the Committee on
Appropriations, and the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(2) International financial institution.--The term
``international financial institution'' means the
International Monetary Fund, International Bank for
Reconstruction and Development, European Bank for
Reconstruction and Development, International Development
Association, International Finance Corporation, Multilateral
Investment Guarantee Agency, African Development Bank,
African Development Fund, Asian Development Bank, Inter-
American Development Bank, Bank for Economic Cooperation and
Development in the Middle East and North Africa, and Inter-
American Investment Corporation.
(c) Termination.--This section shall terminate on the day
after the date on which the Secretary of State certifies and
reports to the appropriate congressional committees that the
requirements of subsection (a) are met.

SEC. 5. ORGANIZATION OF AMERICAN STATES.

(a) Findings.--Congress finds that, according to the
Organization of American States (OAS) report on the
Nicaraguan 2011 Presidential elections, Nicaragua: Final
Report, General Elections, OAS (2011), the OAS made the
following recommendations to the Government of Nicaragua:
(1) ``Prepare alternative procedures for updating the
electoral roll when a registered voter dies.''.
(2) ``Publish the electoral roll so that new additions,
changes of address and exclusions can be checked.''.
(3) ``Reform the mechanism for accreditation of poll
watchers using a formula that ensures that the political
parties will have greater autonomy to accredit their
respective poll watchers.''.
(4) ``Institute regulations to ensure that party poll
watchers are involved in all areas of the electoral
structure, including the departmental, regional and municipal
electoral councils and polling stations. Rules should be
crafted to spell out their authorities and functions and the
means by which they can exercise their authority and perform
their functions.''.
(5) ``Redesign the CSE administrative structure at the
central and field levels, while standardizing technical and
operational procedures, including the design of control
mechanisms from the time registration to the delivery of the
document to the citizens; the process of issuing identity
cards should be timed to the calendar and, to avoid
congestion within the process, be evenly spaced.''.
(b) Electoral Observation Mission.--The President shall
direct the United States Permanent Representative to the
Organization of American States (OAS) to use the voice, vote,
and influence of the United States at the OAS to strongly
advocate for an Electoral Observation Mission to be sent to
Nicaragua in 2016 and 2017.

SEC. 6. STATEMENT OF POLICY.

The Department of State and the United States Agency for
International Development should prioritize foreign
assistance to the people of Nicaragua to assist civil society
in democracy and governance programs, including human rights
documentation.

Amendment Offered by Mr. Royce

Mr. ROYCE. Mr. Speaker, I have an amendment to the bill at the desk.
The SPEAKER pro tempore. The Clerk will report the amendment.
The Clerk read as follows:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Nicaraguan Investment
Conditionality Act (NICA) of 2016''.

SEC. 2. FINDINGS.

[[Page H5781]]

``As noted by international observers and Nicaraguan civil
society groups, Nicaragua's recent elections were not
conducted in a transparent and impartial manner, and the
entire electoral process was marred by significant
irregularities. The elections marked a setback to democracy
in Nicaragua and undermined the ability of Nicaraguans to
hold their government accountable.''.
(8) According to the Department of State's 2015 Fiscal
Transparency Report: ``Nicaragua's fiscal transparency would
be improved by including all off-budget revenue and
expenditure in the budget, auditing state-owned enterprises,
and conducting a full audit of the government's annual
financial statements and making audit reports publicly
available within a reasonable period of time.''.
(9) According to the Department of State's Country Reports
on Human Rights Practices for 2015: ``In 2011 the Supreme
Electoral Council (CSE) announced the re-election of
President Daniel Ortega Saavedra of the Sandinista National
Liberation Front (FSLN) in elections that international and
domestic observers characterized as seriously flawed.
International and domestic organizations raised concerns
regarding the constitutional legitimacy of Ortega's re-
election. The 2011 elections also provided the ruling party
with a supermajority in the National Assembly, allowing for
changes in the constitution, including extending the reach of
executive branch power and the elimination of restrictions on
re-election for executive branch officials and mayors.
Observers noted serious flaws during the 2012 municipal
elections and March 2014 regional elections.''.
(10) According to the Department of State's Country Reports
on Human Rights Practices for 2015 in Nicaragua: ``The
principal human rights abuses were restrictions on citizens''
right to vote; obstacles to freedom of speech and press,
including government intimidation and harassment of
journalists and independent media, as well as increased
restriction of access to public information, including
national statistics from public offices; and increased
government harassment and intimidation of nongovernmental
organizations (NGOs) and civil society organizations.
(11) The same 2015 report stated: ``Additional significant
human rights abuses included considerably biased policies to
promote single-party dominance; arbitrary police arrest and
detention of suspects, including abuse during detention;
harsh and life-threatening prison conditions with arbitrary
and lengthy pretrial detention; discrimination against ethnic
minorities and indigenous persons and communities.''.
(12) In February 2016, the Ortega regime detained and
expelled Freedom House's Latin America Director, Dr. Carlos
Ponce, from Nicaragua.
(13) On May 10, 2016, the Supreme Electoral Council
announced and published the electoral calendar which aims to
govern the electoral process.
(14) After receiving the electoral calendar for the 2016
Presidential elections, the Nicaraguan political opposition
raised concerns and pointed to a number of anomalies such as:
the electoral calendar failed to contemplate national and
international observations, failed to agree to publicly
publish the precincts results of each Junta Receptora de Voto
(JRV), and failed to purge the electoral registration rolls
in a transparent and open manner.
(15) Nicaragua's constitution mandates terms of 5 years for
municipal authorities, which would indicate that the next
municipal elections must occur in 2017.
(16) On June 3, 2016, the Nicaraguan Supreme Court--which
is controlled by Nicaragua's leader, Daniel Ortega--
instructed the Supreme Electoral Council not to swear in
Nicaraguan opposition members to the departmental and
regional electoral councils.
(17) On June 5, 2016, regarding international observers for
the 2016 Presidential elections, President Ortega stated:
``Here, the observation ends. Go observe other countries . .
. There will be no observation, neither from the European
Union, nor the OAS . . .''.
(18) On June 7, 2016, the Department of State's Bureau of
Democracy, Human Rights and Labor posted on social media:
``Disappointed government of Nicaragua said it will deny
electoral observers requested by Nicaraguan citizens, church,
and private sector . . . We continue to encourage the
government of Nicaragua to allow electoral observers as
requested by Nicaraguans.''.
(19) On June 8, 2016, the Supreme Electoral Council--which
is controlled by Nicaragua's leader, Daniel Ortega--announced
a ruling, which changed the leadership structure of the
opposition party and in practice allegedly barred all
existing opposition candidates from running for office.
(20) On June 14, 2016, President Ortega expelled three
United States Government officials (two officials from U.S.
Customs and Border Protection and one professor from the
National Defense University) from Nicaragua.
(21) On June 29, 2016, the Department of State issued a
Nicaragua Travel Alert which stated: ``The Department of
State alerts U.S. citizens about increased government
scrutiny of foreigners' activities, new requirements for
volunteer groups, and the potential for demonstrations during
the upcoming election season in Nicaragua . . . Nicaraguan
authorities have denied entry to, detained, questioned, or
expelled foreigners, including United States Government
officials, academics, NGO workers, and journalists, for
discussions, written reports or articles, photographs, and/or
videos related to these topics. Authorities may monitor and
question private United States citizens concerning their
activities, including contact with Nicaraguan citizens.''.
(22) On August 1, 2016, the Department of State issued a
press release to express grave concern over the Nicaraguan
government limiting democratic space leading up to the
elections in November and stated that ``[o]n June 8, the
Nicaraguan Supreme Court stripped the opposition Independent
Liberal Party (PLI) from its long recognized leader. The
Supreme Court took similar action on June 17 when it
invalidated the leadership of the Citizen Action Party, the
only remaining opposition party with the legal standing to
present a presidential candidate. Most recently, on July 29,
the Supreme Electoral Council removed 28 PLI national
assembly members (16 seated and 12 alternates) from their
popularly-elected positions.''.

SEC. 3. STATEMENT OF POLICY.

SEC. 4. INTERNATIONAL FINANCIAL INSTITUTIONS.

(a) In General.--The President shall instruct the United
States Executive Director at each international financial
institution to use the voice, vote, and influence of the
United States to oppose any loan for the benefit of the
Government of Nicaragua, other than to address basic human
needs or promote democracy, unless the Secretary of State
certifies and reports to the appropriate congressional
committees that the Government of Nicaragua is taking
effective steps to--
(1) hold free, fair, and transparent elections overseen by
credible domestic and international electoral observers;
(2) promote democracy, as well as an independent judicial
system and electoral council;
(3) strengthen the rule of law; and
(4) respect the right to freedom of association and
expression.
(b) Report.--The Secretary of the Treasury shall submit to
the appropriate congressional committees a written report
assessing--
(1) the effectiveness of the international financial
institutions in enforcing applicable program safeguards in
Nicaragua; and
(2) the effects of the matters described in section 2 on
long-term prospects for positive development outcomes in
Nicaragua.
(c) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs, the Committee on
Appropriations, and the Committee on Financial Services of
the House of Representatives; and
(B) the Committee on Foreign Relations, the Committee on
Appropriations, and the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(2) International financial institution.--The term
``international financial institution'' means the
International Monetary Fund, International Bank for
Reconstruction and Development, European Bank for
Reconstruction and Development, International Development
Association, International Finance Corporation, Multilateral
Investment Guarantee Agency, African Development Bank,
African Development Fund, Asian Development Bank, Inter-
American Development Bank, Bank for Economic Cooperation and
Development in the Middle East and North Africa, and Inter-
American Investment Corporation.
(d) Termination.--This section shall terminate on the day
after the earlier of--
(1) the date on which the Secretary of State certifies and
reports to the appropriate congressional committees that the
requirements of subsection (a) are met; or
(2) 5 years after the date of the enactment of this Act.
(e) Waiver.--The President may waive this section if the
President determines that such a waiver is in the national
interest of the United States.

SEC. 5. ORGANIZATION OF AMERICAN STATES.

[[Page H5782]]

of the electoral structure, including the departmental,
regional and municipal electoral councils and polling
stations. Rules should be crafted to spell out their
authorities and functions and the means by which they can
exercise their authority and perform their functions.''.
(5) ``Redesign the CSE administrative structure at the
central and field levels, while standardizing technical and
operational procedures, including the design of control
mechanisms from the time registration to the delivery of the
document to the citizens; the process of issuing identity
cards should be timed to the calendar and, to avoid
congestion within the process, be evenly spaced.''.
(b) Electoral Observation Mission.--The President shall
direct the United States Permanent Representative to the
Organization of American States (OAS) to use the voice, vote,
and influence of the United States at the OAS to strongly
advocate for an Electoral Observation Mission to be sent to
Nicaragua in 2016 and 2017.

SEC. 6. STATEMENT OF POLICY.

SEC. 7. REPORT ON CORRUPTION IN NICARAGUA.

(a) Report Requirement.--Not later than 120 days after the
date of the enactment of this Act, the Secretary of State, in
consultation with the intelligence community (as defined in
section 3(4) of the National Security Act of 1947 (50 U.S.C.
3003(4)), shall submit to Congress a report on the
involvement of senior Nicaraguan government officials,
including members of the Supreme Electoral Council, the
National Assembly, and the judicial system, in acts of public
corruption or human rights violations in Nicaragua.
(b) Form.--The report required in subsection (a) shall be
submitted in unclassified form, but may contain a classified
annex. The unclassified portion of the report shall be made
available to the public.

Mr. ROYCE (during the reading). Mr. Speaker, I ask unanimous consent
to dispense with the reading of the amendment.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
The amendment was agreed to.
The bill was ordered to be engrossed and read a third time, was read
the third time, and passed.
The title of the bill was amended so as to read: ``A bill to oppose
loans at international financial institutions for the Government of
Nicaragua, other than to address basic human needs or promote
democracy, unless the Government of Nicaragua is taking effective steps
to hold free, fair, and transparent elections, and for other
purposes.''.
A motion to reconsider was laid on the table.

____________________