Estado Ladrón: How Ortega’s Regime Uses Confiscations as Tools of Repression and Revenue in Nicaragua
The Case of Oswaldo Rivas
In late May 2026, Nicaraguan photojournalist Oswaldo Rivas, now in exile in the United States, was shocked to find that the house he had painstakingly built over 20 years was listed for sale for USD 255,000 on a digital platform called Encuentra24. The listing, attributed to a realtor named Moreno Merlo, featured photos that Rivas himself had taken before moving abroad due to threats from the government.
The home, situated on the old road to León in Managua, was occupied by police just a day after Rivas received warnings about imminent arrest. “We built it from scratch, with pure sweat,” Rivas told La Prensa. This story isn’t an isolated incident; it’s part of a larger trend identified by the Observatory for Transparency and Anti-Corruption (OPTA), which describes the regime’s actions as the “new Ortega-Murillo piñata”—a ruthless system of illegal confiscations that has made the Nicaraguan state a principal predator of private property since 2018.
Roots of the Repression
The origin of this aggressive confiscation strategy can be traced back to the massive citizen rebellion of April 2018, when hundreds of thousands protested against Ortega and his wife, Rosario Murillo. The regime’s violent crackdown led to more than 300 deaths and thousands of arrests.
In addition to physical repression, Ortega’s government has constructed a legal framework designed to economically target perceived enemies. This blatant disregard for the Nicaraguan Constitution, particularly Article 44—which expressly prohibits confiscation—reflects a calculated maneuver by the regime to eliminate legal obstacles.
Legislative Changes and Their Implications
In February 2023, the regime amended Article 20 of the Constitution to allow for the confiscation of the property of anyone deemed a “traitor to the homeland.” This reform set the stage for widespread property theft disguised as legal action. An OPTA study documented 135 confiscated properties, valued at around USD 250 million, but this figure is considered just the tip of the iceberg due to the secretive nature of the public administration and the fear instilled in victims.
The government has targeted a diverse array of sectors, including political dissidents, non-governmental organizations (NGOs), religious institutions, and businesses. For instance, 222 political prisoners were expelled to the U.S. in early 2023, all stripped of their assets, including pensions and bank accounts.
The Broader Impact on Society
By April 2026, Nicaragua’s government had shuttered approximately 5,700 NGOs, and rights advocates estimate that the Catholic Church has lost at least 43 properties. Other groups, including 30 NGOs, have faced similar fate, with total confiscated assets for the business sector nearing USD 163.4 million. One of the most glaring examples is the confiscation of properties belonging to the Superior Council of Private Enterprise (COSEP) and prominent business figures like Piero Coen, whose holdings were valued at USD 100 million.
The Taking of Media Properties
Media organizations have not been spared; La Prensa, Nicaragua’s oldest newspaper, had its facilities seized in August 2021, leading to over USD 20 million in losses. This situation underscores a troubling trend where confiscated properties are repurposed for state-run centers, often inaugurated amid pomp but falling into disuse.
Recent Developments
Recent government actions reveal a systematic approach to this policy. The establishment of the State Properties Committee aims to manage, classify, and auction off assets held by the state. Legal reforms permit the immobilization of bank accounts and assets without judicial authorization, further expanding governmental power to control dissent.
Critics assert that these measures deepen the logic of “enemy criminal law,” where the state views individuals as objects to persecute, stripping them of their basic rights.
In an editorial, La Prensa describes the phenomenon as an “Estado ladrón,” echoing Colombian writer Carlos Lemos Simmonds‘ observation about states transitioning from public administrators to entities that exploit private resources through excessive taxes, inflation, or corruption.
Conclusion: Risks of Property Acquisition
This environment poses serious risks for anyone considering purchasing any property offered by the regime, as these transactions lack legal legitimacy. Future owners of confiscated properties may face claims from original owners once political conditions change.
Oswaldo Rivas remains vigilant from exile, determined to reclaim his home when circumstances allow. Encounters like Rivas’ illustrate the ongoing struggle between citizens and a state increasingly perceived as a thief rather than a protector of rights and resources.