They don't "conflict". A conflict for example would mean that there's a law or regulation but it isn't applicable because of what's happening in reality, however on paper everything seems fine. With respect to this passage, it could be something along the lines of a law existing for these institutions but not being applicable because that law doesn't apply in those grey zone where they primarily exist (this is just an hypothetical example).
However, what really is happening is that these institutions can be legally operated in these grey zones without officials doing their routine checks which are required for documentation. So when these institutions are asked for documentations and they don't have any, officials put the blame on them. This shows a lack of accountability, thus option 3.
They don't "conflict". A conflict for example would mean that there's a law or regulation but it isn't applicable because of what's happening in reality, however on paper everything seems fine. With respect to this passage, it could be something along the lines of a law existing for these institutions but not being applicable because that law doesn't apply in those grey zone where they primarily exist (this is just an hypothetical example).
However, what really is happening is that these institutions can be legally operated in these grey zones without officials doing their routine checks which are required for documentation. So when these institutions are asked for documentations and they don't have any, officials put the blame on them. This shows a lack of accountability, thus option 3.
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