PARAGUAY POLITICAL AND ECONOMIC UPDATE, AUGUST 14

S E C R E T SECTION 01 OF 02 ASUNCION 001053 SIPDIS STATE FOR WHA/BSC AND EB/IFD/OIA STATE PASS TO USAID FOR LAC/AA STATE PASS TO USTR FOR LYANG NSC FOR SUE CRONIN TREASURY FOR OSIA MAUREEN WAFER TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR COMMERCE FOR ITA SARAH COOK SOUTHCOM FOR POLAD DAN JOHNSON E.O. 12958: DECL: 08/19/2010 TAGS: PGOV PHUM PREL SNAR KCRM PA SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, AUGUST 14 - AUGUST 20 REF: A. ASUNCION 936 ¶B. ASUNCION 1000 Classified By: DEPUTY CHIEF OF MISSION KEVIN M. JOHNSON, FOR REASONS 1. 5 (B) AND (D) ¶1. (U) Summary: -- Delay in Prosecution of Terrorist Supporter -- Candia is the New Attorney General -- Former Police Officers Imprisoned -- Entry of Cubans Concerns GOP -- New Immigration Security Measures Planned -------------- Delay in Prosecution of Terrorist Supporter -------------- ¶2. (S) Hattem Barakat, brother of Assad Barakat, who is accused of falsifying documents and tax evasion was to go to trial on August 17 but his case was postponed until September ¶22. Manuel Rojas Rodriguez, the prosecutor, wants to go after Hattem with the full weight of the law but Norma Gamarra de Martinez, the Judge assigned to this case, has postponed this case (3 or 4 times),in attempt to convince the prosecutor to accept a plea deal that will result in community service and restitution but no prison time. The prosecutor has refused each request to a plea. Embassy sources state that the Judge is on the take and is stonewalling for as long as she can until the prosecutor agrees to the plea deal. (NOTE: Embassy sources indicated that Gamarra was involved in a botched plan to bring Assad Barakat to court as a witness in another case, where an escape would take place. Nothing was ever revealed about her involvement in public. End Note.) -------------- Candia is the New Attorney General -------------- ¶3. (U) On August 18, Ruben Candia Amarilla was confirmed by the Senate to be the new Attorney General for the GOP. The current Minister of Justice, Candia was President Nicanor Duarte Frutos' choice for attorney general. He was criticized sharply by the opposition for being dishonest and unqualified for the job. The President and the multiparty bloc, which includes members of the leading Colorado Party and dissident members of the Authentic Radical Liberal Party (PLRA) and the Country in Solidarity Party (PPS),continue to consolidate their power and influence gaining the support of opposition UNACE Senators for Candia's election. The press speculated that UNACE's support signals revived discussions with the GOP over a deal to eventually Free Gen. Lino Oviedo -------------- Former Police Officers Imprisoned -------------- ¶4. (U) On August 13, it was reported that retired police officers Zunilda Roig, her brother Jaime Ruben Roig Baez, and 12 other individuals were imprisoned after being arrested on August 9 when the National Anti-Drug Secretariat (SENAD) seized 336 kilograms of marijuana during raids on premises in Lambare, Villa Elisa, San Lorenzo, and Capiata. All 14 are suspected of being part of an international drug-trafficking organization. -------------- Entry of Cubans Concerns GOP -------------- ¶5. (U) The press has reported that since May some 60 to 70 Cubans have been entering Paraguay per month. There are competing theories for the supposed influx of Cubans. First some GOP security officials believe that some of these individuals have entered as Cuban spies under the guise of tourists or as medical personnel. Second, there is speculation that these people are members of international crime syndicates. Third, the Cuban nationals are here to use Paraguay as a "trampoline" to enter a third country, mainly the US. The Cubans have come under increased suspicion because of recent incidents in Brazil and Venezuela, where other Cubans were involved in questionable activities. According to some reports, a number of Cubans, who were forced to leave Venezuela because of problems they had caused in that country, have entered Paraguay. The Cuban Ambassador to Paraguay remarked that she was unaware so many Cubans had been entering Paraguay and expressed concern -- bordering on the comic -- about how these individuals had been able to get out of Cuba noting that it is rather difficult and expensive to do so. -------------- New Immigration Security Measures Planned -------------- ¶6. (U) On July 27, Director General Carlos Liseras announced plans to implement new immigration security measures that will be funded in part with $650,000 USD in technical and financial assistance from South Korea. One of the measures involves developing a system that will enable GOP officials to take digital imaging photographs, fingerprints, and iris scans of all Paraguayans and visiting foreign nationals entering the country. (Note: On July 26, during a meeting with a visiting TIP Assessment Team, Director Liseras provided more information about the biometric immigration security system as well as the agreement between South Korea and Paraguay. He stated that the system would be implemented in various ports of entry such as Ciudad del Este and Encarnacion by December 2005.) KEANE