PARAGUAY'S 2005 THIRD QUARTER INL REPORT

UNCLAS SECTION 01 OF 03 ASUNCION 001281

SIPDIS

SENSITIVE

STATE FOR INL ABBY SMITH

E.O. 12958: N/A
TAGS: SNAR KCRM PA
SUBJECT: PARAGUAY'S 2005 THIRD QUARTER INL REPORT


1. (U) Summary:

- QUARTERLY ACTIVITIES
- PROGRAM DISCUSSION
- QUARTRLY SENAD STATISTIC

QUARTERLY ACTIVITIES - COUNTERNARCOTICS


2. (U) On August 13, it was reported that retired police
officer Zunilda Roig, her brother Jaime Ruben Roig Baez and
12 other individuals were imprisoned after being arrested on
August 9, when SENAD seized 336 Kilograms (KG) of Marijuana
during raids on properties in Lambar, Villa Elisa, San
Lorenzo and Capiata. All 14 are suspected of being part of
an international drug-trafficking organization.


3. (U) On August 26, the Canine Unit detected and sized 7.3
Kilograms (KG) of cocaine and detained Pedro Adrian Venero
Murillo, a Mexican national, the cocaine with an estimated
value of USD 51,018, was woven into the clothing and found in
three (3) suitcases. SENAD believes the drugs were bound for
the United States via Mexico. According to a news report on
August 28, Colombian National, Julio Cesar Ramirez Gutierrez,
was also detained in connection with Venero Murillio.


4. (U) On September 27, during a routine inspection of TAM
airlines at Asuncion International Airport, the National
Anti-Drug Secretariat (SENAD) With the assistance and
detection by a Canine Unit, arrested Cristian J. Galeano
Oviedo for cocaine trafficking. Oveiedo was captured with 2
kilos of cocaine that were hidden in the compartments of
Oviedo,s luggage. According to SENAD agents the cocaine
destination was Valencia, Spain. The prosecutor in charge of
this case is Gilda Villalba of the district of Luque.


5. (U) On August 11, SENAD and Chilean law enforcement with
the assistant of Bolivian authorities, conducted the first
joint operations to capture members of an international drug
ring as part of a controled delivery. Law enforcement
officials in Santiago, Chile apprehended 13 suspects and
seized two (2) tons of marijuana. SENAD arrested 11 in
Asuncion and Colonel Oviedo, seizing 371 Kilograms (KG) of
Marijuana in Coronel Oviedo and 337 in Asuncion.
Additionally, SENAD seized four (4) vehicles and currency.
This operation began in Santiago in June, when authorities
learned of the truck hauling the drugs. The operation
demonstrated excellent cooperation and strengthened
intelligence sharing among Paraguay, Bolivia and Chile.


6. (U) On July 12, During a raid one block away from the
DCM's residence, SENAD captured Brazilian national, Luis
Alberto Da Cunha, alias Barba, who was on on Brazil's Ten
Most Wanted List. In cooperation with Brazilian National
Police, SENAD seized weapons, cars, cellular telephones and
false documents. Da Cunha was one of the largest drug
traffickers in the country and is connected to Ivan Mesquita.
Brazil is seeking extradition of Da Cunha.


Trafficking in Persons (TIP)


7. (U) On July 11, Paraguayan Ambassador to Argentina,
Orlando Fiorotto, announced that two minors exploited in the
sex trade would be returning to Paraguay soon. These young
girls were among 33 women and children rescued in the suburbs
of Buenos Aires. Two others were repatriated a week before,
one of whom was pregnant. According to Eugenio Ambrosi from
the International Organization of Migration (IOM),trafficking
of children and women has increased by 27 percent in the last
five years in Paraguay.

Intellectual Property Rights (IPR)


8. (U) The Ministry of Industry and Commerce (MIC)
announced that the INL-Funded IPR Enforcement Unit (UTE) had
seized pirated CDs, DVDs, PlayStation 2 games as well as
cases and labels with an estimated valued of $2 million USD.
UTE coordinated the operation with prosecutors, Finance
Ministry Officials and the National Police. Seven people were
detained and arrest warrants were issued for two others. MIC
Minister Raul Vera highlighted the operation as an evidence
of government,s continued resolve to fight IPR violations.


9. (SBU) On September 15, During a U.S. Treasury Department
training Course, Col. Felix Cruz, the director of the
Ministry of Industry and Commerce,s (MIC) INL-Funded
Specialized Technical Unit (UTE) coordinated with prosecutors
to arrest Customs official Luis Alberto Panza Benitez, a
member of the Customs Verification and Technical Unit
(UTAVE),on bribery charges. Panza is reportedly well
connected to former Senator and Ambassador to Spain, Nelson
Argana. A private sector dispatch agent who is a Colorado and
ran for a governorship in the last election was also arrested
as an accomplice to bribery. This success demonstrated that
US-trained investigators and vetted units could make a
dramatic difference.



10. (U) Program Discussion:

a. Demand Reduction

The Prevention Program continues to reach hundreds of schools
each month. The program is coordinated and directed by
Esmelda Acosta Ortega and eight program assistants. It
includes formal training, informal sessions, public seminars,
teacher-instructor sessions and the dissemination of
informative drug awareness materials. The drug awareness and
prevention talks are given to children from fourth to
eleventh grade. The last report records from September 2004
to September 2005 show that in the central district alone the
drug awareness program has reached a total of 44,710 students
and formal training was provided to 1,068 schoolteachers. A
total of 219 public educational institutions have been
reached.

b. Narcotics Detection Canine Program

The canine program continues to enhance the overall efforts
of SENAD,s drug interdiction program. The program consists
of a Coordinator, 12 guides and 12 canines, thanks to new a
canine that was added to the program in late August. This
should allow for enhanced efforts for specific operations.
The canines continue to be used in the international Airport
in Asuncion as well as checkpoints throughout the country,
including Ciudad del Este on the Paraguayan-Brazilian Border,
Mariscal Estigarribia and Pedro Juan Caballero
Paraguayan-Brazilian Border.


C. Law Enforcement

1.Counter Narcotics

The Government of Paraguay, through SENAD, has continued to
make advancements in its drug enforcement activities,
including the seizure of cocaine and marijuana and the
destruction of marijuana crops.


11. (U) Training

From September 12 to October 07, the U.S. Treasury
Department,s Office of Technical Assistance (OTA) provided
Basic Economic Crime Investigation training. This training
aims to teach investigative techniques that apply to complex
economic crime investigations in a variety of areas such as
trademark, copyright, piracy, tax evasion, corruption and
money laundering to select members of SENAD, SEPRELAD, the
Finance Ministry, the Revenue Department and Customs. INL
provided logistical and financial support.


12. (U) Miscellaneous Issues

Quarterly SENAD statistics

1st 2nd 3rd 4th


Cocaine 105.9 Kg 12.39 Kg 5.64 Kg 0
Seized (kg)

Marijuana
Seized (kg) 25.601Kg 26,737 Kg 9,000Kg 0

Marijuana
Crops 761 Ha 219 Ha 3000 Ha 0
Destroyed

Arrests
(total) 317 45 97 0

- Cocaine 10 11 25 0
- Marijuana
(cultivation) 0 1 1 0

- Marijuana 6 32 58 0

- Counterfeit 0 0 0 0
Currency

- Int'l Trafficking 1 0 0 0
Firearms

- Trafficking 0 1 2 0
Narcotics

- Illegal Entry 0 0 2 0

- Money Laundering 0 0 9 0

- Result of Investigation
KEANE