PARAGUAY POLITICAL AND ECONOMIC UPDATE, DECEMBER

UNCLAS ASUNCION 001260

SIPDIS

SIPDIS

STATE FOR WHA/BSC, INL/LP (JIM HIDES)
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

E.O. 12958: N/A
TAGS: PGOV PHUM PREL PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, DECEMBER
16 - 22



1. (U) SUMMARY:

-- Anti-Corruption Prosecutor Wins New Term
-- ID Director Fired After Robbery
-- Promoting Citizen Access to Public Information
-- Democracy Survey Results

PROMINENT ANTI-CORRUPTION PROSECUTOR WINS NEW TERM


2. (SBU) The Supreme Court unanimously confirmed
Anti-Corruption/Anti-Narcotics Prosecutor Arnaldo Giuzzio for
another five-year term on December 18. His confirmation by
the Colorado dominated Court had been thought in jeopardy in
the wake of his opening a high profile corruption case
against the Colorado President of the House of Deputies,
Victor Bogado. Regularly accused of political favortism, the
Court may have sought to avoid another round of criticism for
sacking a prosecutor widely viewed by the public as on the
front line - if not "The" front line - in the fight against
corruption.

ID DIRECTOR FIRED AFTER ROBBERY


3. (U) The Director of Indentifications, Principal
Commissioner Nestor Vera Plana, was fired December 19 and
replaced by Ireneu Domingo Gimenez, after an assault on a
National Police Identification Mobile Unit carrying
approximately USD 21,000. Vera had been personally involved
in the implementation of GOP's Threshold Program working with
Paraguay's national registries. Inasmuch as Vera served a
major partner for the MCA program's registry project, it is
likely that implementation of this component, which aims at
improving reliability and promptness of the currently chaotic
ID and passport issuance processes will face delays.

PROMOTING CITIZEN ACCESS TO PUBLIC INFORMATION


4. (U) USAID/Paraguay and the local World Bank office have
agreed to coordinate efforts to promote citizen access to
public information. USAID will be awarding approximately USD
100,000 in sub-grants to civil society organizations seeking
to increase the demand for, and provision of, public
information from government institutions. In addition, the
World Bank will be awarding USD 35,000 worth of small grants
for the same purpose. Each donor (USAID and the World Bank)
will manage their competitive and administrative processes
separately, but will publicly launch the grants/sub grants
competitions together to demonstrate unity behind the access
to public information cause.

DEMOCRACY SURVEY RESULTS


5. (U) A USAID funded Democracy survey, conducted by the
Center for Information and Development Resources (CIRD),was
recently released and indicates a significant level of
pessimism regarding the state of the national economy, the
lack of economic opportunities, and the wrant political
situation. On the other hand, many of those surveyed were
much more optimistic about their own personal economic
situation than in the past. The survey also showed positive
results that indicate a vast majority of respondents value
key democratic institutions. Twenty percent of the
respondents consider Monsignor Fernando Lugo (a Catholic
cleric who plans to run for President) a viable option for
bringing progress to the country, closely followed by Lino
Oviedo, an ex-General currently imprisoned for an attempted
coup in 1996. The most worrisome result may be that a
whopping 36 percent of respondents said they plan to leave
the country over the next three years.
CASON