Business Corruption in Nicaragua

Rampant corruption within Nicaragua's political circles impairs the functioning of state institutions and limits foreign investment. International companies report widespread favouritism and impunity among public officials. The judicial system functions under heavy political pressure, and courts are susceptible to corruption and manipulation by politicians and criminal organisations. Foreign firms experience discrimination and extortion in courts, meaning there exists an unfair process of resolving commercial disputes. The protection of property rights is weak due to public authorities' failure to enforce court orders and to protect foreign business owners from illegal seizures. High-risk areas for bribery include Nicaragua's tax and customs sectors, which practice arbitrary treatment of companies in order to extort facilitation payments and kickbacks . Bribery , abuse of office , facilitation payments and gifts to public officials are illegal. Nicaragua's anti-corruption legislation is comprehensive and addresses all major forms of corruption; however, the law is not enforced effectively, allowing for pervasive corruption and creating a challenging business environment for foreign companies.

June 2015
GAN Integrity Solutions