Current situation CSOs in Azerbaijan Gubad Ibadoglu EITI

Current situation CSOs in Azerbaijan Gubad Ibadoglu EITI NGO Coalition Coordinator OSF Eurasia Strategy Convening on Good Governance, Transparency, and Accountability Budva, Montenegro, 20 November 2014

Approximate Number 2, 700 registered NGOs (as of May 2013) and estimated 1, 000 unregistered groups carrying out activities. Barriers to Entry Foreigners and stateless persons can be founders of an NGO in Azerbaijan only if they have permanent residence. Registration procedures are problematic, specifically due to centralized registration in Baku and the exercise of government discretion in denying applications. Barriers to Activities Foreign NGOs cannot conduct activities in Azerbaijan without registering with the Ministry of Justice. Legislative changes will lead to a reduction of grants issued by foreign donors. Most of NGOs are not able to operate. Barriers to Resources NGOs are required to provide an application letter and notarized copy of any grant agreement to the Ministry of Justice within 30 days of the date of the grant agreement. Cash donations (under 200 azn) can be received only by NGOs whose statutory purposes include charitable purposes. Anonymous donations are prohibited.

Trends towards tightening political space Maydan events and enhancement of relations with Russia Worsening West of relations with

Deteriorating enabling environment for CSOs Changes in attitude of government: we are the last of the Mohicans, first the government weakened the political opposition, then targeted free media, and now the independent NGOs. Establishing political and legal grounds for prohibition of work of democratic institutes and NGOs

First stage: complicating legal grounds regulating work of NGOs December 2013 – February 2014 Adoption of changes and amendments to laws regulating work of NGOs by Parliament on december 13. On February 4 th the President singned above mentioned changes. On February 16 th new regulations on registration of grants came on force.

RESULTS OF FIRST STAGE Complication of registration process of grants or refusal of their registration. Limitations to work of NGOs (prohibitions to giving venues for public events). Most of hotels and business centers refuse NGOs) to rent their halls and ask to grant a permission from administration of the President.

Second stage: Publication of articles disconsidering reputation of civil society March 2014 - to present Black PR in progovernmental papers. Preperation of TV programs on agents working in organizations getting funding from abroad. Governmental oriented newspapers and on-line resources publish dirty articles in Russian and Azeri. $32 million to turn Azerbaijan to Ukraine http: //haqqin. az/news/20415 Another $14 million for Azeri revolution http: //haqqin. az/news/20676

RESULTS OF SECOND STAGE Creation of foreign agent image for NGOs and their liders. Creation of “grant eating” image of NGOs in public. Disconsidering reputation of NGOs. Freezing bank accounts of NGOs (blocking of personal and organizations accounts).

Third stage: General inspections of NGOs April 2014 - present Preparation of “black list” of independent NGOs and donor organizations. Start of inspections by Tax agencies for checking financial activities of NGOs. Initiating 3 criminal cases against NGOss at Investigation Office of State Prosecutor’s Office and Anti-Corruption Agency.

RESULTS OF THIRD STAGE Calling and sentencing NGO liders and accountants to Prosecutor General's Office. General Prosecutor’s office launched a campaign to find ‘traitors’ (foreign agents) among NGOs. This includes home and office search of multiple NGOs Leaders and staff members of separate NGOs are being. Bank accounts of more than 40 leading independent NGOs’ are blocked or arrested. Closed court decisions and blocking of accounts of NGOs, their liders and all those having signature right. The bank accounts of the some members of EITI NGO Coalition and their leaders personal accounts have already been arrested by a decision of the Courts and by request of the Prosecutor’s office. The Ministry of Taxes has started to inspect the organization as well. Prohibitions for NGO liders to travel abroad. The current interrogation and inspections have definitely political nature. Thus, independent NGOs are accused in betrayal of the State as they received funding from foreign donor organizations.

New changes on the Law on Grants and NGO Law On 16 November the changes made to the Law on Grants and NGO Law last month has been published in official newspaper and has entered into force. Alongside with these changes, the President has issued two decrees on their implementation. Brief summary of these four documents are next slides.

1. Donations from foreign donors: a. Local NGOs can receive donations from foreign donors only if a foreign donor has an agreement with the Ministry of Justice (Mo. J) of the Republic of Azerbaijan. Here there is no requirement for a donor to register a representation as the law only requires having an agreement with Mo. J. b. A non-governmental organization, as well as branches or representations of foreign NGOs shall submit information on the amount of the received donations and donors to Mo. J and the Ministry of Finances (Mo. F). The procedure for such communication is yet to be adopted by the Cabinet of Ministers during next 2 months. c. No bank operations or any other operations on donations can be realized without submitting information about it. Probably there will be a new article in the Code of Administrative Offices envisaging a responsibility for this.

Registration of service contracts: a. NGOs must have a contract for provision of services and fulfilment of works. b. NGOs will have to register a service contract concluded with a foreign entity at the Ministry of Justice. It is not required to register a service contract if it is concluded with a local entity. The procedure for such a registration is yet to be adopted by the Cabinet of Ministers during next 2 months. c. NGOs providing services or fulfilling works without contract or on the basis of non-registered contract will be held responsible under the Code of Administrative Offences. The responsibility for such violation will be drafted by the Cabinet of Ministers during next 2 months.

Local donors: List of local donors was extended and the Cabinet of Ministers is instructed to draft such a list within next 2 months. All state bodies who want to provide grants to NGOs must coordinate with NGO Support Council.

Grants by foreign donors: a. Foreign legal entities may provide grants to Azeri NGOs if they have an agreement with Mo. J, have a registered branch or representation in Azerbaijan as well as after obtaining the right to give a grant in the Republic of Azerbaijan. b. An opinion on financial-economic expediency of the grant by the relevant executive body is needed for obtaining the right to give a grant. c. There is no mentioning of cases when a foreign donor is an inter-governmental organization or has a bilateral agreement with the Government of Azerbaijan. d. The procedure for becoming a registered donor is yet to be developed by the Cabinet of Ministers within next 2 months ‘by coordinating with the President’.

GENERAL OUTCOMES Limitation and stopping work of around 60 NGOs. Blocked bank account s more than 40 NGOs Forced leave and hide of more than 10 NGO leaders. Arrest of 8 NGO leaders.

Expected results The situation with the civil sector of Azerbaijan can be regarded as a deprivation of NGO independence. Political parties, independent media and NGOs, a pillar of democratization of the country, have to close. (What forces will be released to the scene? Instead of surviving democratic structures, radical forces will emerge. ) Reduce the cooperation between local and foreign organizations. The funds allocated by the government are not enough for the implementation of major projects.