PARAGUAY POLITICAL AND ECONOMIC UPDATE, JULY 8 -

UNCLAS ASUNCION 000729

SIPDIS

SIPDIS

STATE FOR EB/IFD/OIA AND INL - ABBY SMITH
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 PREL SNAR KCRM PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE, JULY 8 -
14 2006

REF: ASUNCION AND PRECEDING


1. (U) SUMMARY:
-- Cocaine Seizure and Arrest of Trafficker's Son
-- Judges Renounce Their Political Parties
-- Lugo Will Not Run in 2008

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Cocaine Seizure and Arrest of Trafficker's Son
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2. (U) On 7/9, SENAD (the National Antidrug Secretariat)
seized 120 kg of cocaine near Pedro Juan Caballero, in the
Department of Amambay, and arrested three men. A major drug
trafficker who is wanted in Paraguay and Brazil, Erineu
Domingo-Soligo (aka Pingo),was involved. However, he
escaped during a shoot-out and chase that ensued when SENAD
teams moved in to make the arrests. Domingo-Soligo's son,

Jonathan Wink Soligo (aka Lico),was arrested along with
Ediney Jara de Oliveira and Antonio Ramos Crivelli. The
cocaine was seized on Domingo-Soligo,s ranch near Pedro Juan
Caballero. On the ranch officials also discovered radios
possessing the frequencies used by SENAD. SENAD officials
are currently searching for Domingo-Soligo, who was wounded
in the shoot-out. Domingo-Soligo heads a Paraguayan arms and
drug trafficking organization, along with Aldo Mariano Rocha
(aka Aldo Rojas) that has ties to several similar
organizations including the Brazilian arms and drug
trafficking organization headed by Luis Fernando Da Costa
(aka Beira Mar). There are indications Domingo-Soligo
supplies ammunition to the FARC in Colombia in exchange for
cocaine. (Comment: This operation represents another example
of SENAD's expanding professionalism. End comment.)

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Judges Renounce Their Political Parties
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3. (U) Under the Judicial Ethics Code, the development of
which USAID funded in 05 and 06, 600 of the 650 judges around
the country have renounced their membership in political
parties. The deadline for all judges to renounce their
political party affiliation was June 30th. For those that
failed to comply the Code allows for sanctions to be imposed.
Of course, renouncing one's party affiliation does not
guarantee a judge will necessarily act independent of party
interest. Nonetheless, this is a step in the right direction
of seeking to depoliticize the justice sector and instilling
confidence that decisions made in the judiciary are not
linked to political interests.

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Lugo Steps Down as Leader of the Opposition Movement
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4. (U) On 7/11, the opposition officially formed the
Political and Social Concentration. Monsignor Fernando Lugo,
affirming that he had served his purpose of bringing together
the disparate political parties and social groups that make
up this new group and producing a draft declaration of its
goals, announced that we would be stepping down as its
principal leader. The group's leaders have eight days to
study the draft declaration on the group's goals and decide
whether they are ready to agree to its terms. On 7/12, in a
meeting with the President of Congress, Victor Bogado, the
Papel Nuncio stated that Lugo had agreed with the Paraguayan
Episcopal Conference (CEP)not to run as a presidential
candidate in the 2008 elections. In his own statements, Lugo
was more ambiguous about his possible candidacy for the
presidency. There is some concern within the group whether
it can remained united absent Lugo's leadership.
CASON