PARAGUAY'S COUNTERDRUG AGENCY UNDER INVESTIGATION

UNCLAS ASUNCION 001031

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV SNAR PREL PA
SUBJECT: PARAGUAY'S COUNTERDRUG AGENCY UNDER INVESTIGATION



1. (U) Economic crimes prosecutor Arnaldo Giuzzio opened a
formal investigation of members of Paraguay's National
Counternarcotics Secretariat (SENAD) December 7 regarding
alleged irregularities involving a food services contract.
Giuzzio confiscated SENAD files pertaining to the alleged
failure of SENAD's management officer, Federico Cabral, to
follow proper acquisition procedures and regarding
allegations that he and others may have accepted bribes from
SENAD's regular food service vendors.


2. (SBU) Giuzzio, a USG-vetted prosecutor widely recognized
for his dogged anti-corruption efforts, gave the Embassy
advance notice of his investigation. Emboffs spoke to
Minister Hugo Ibarra, SENAD's director, December 7 and 10;
Ibarra assured the Embassy that he will cooperate fully with
Giuzzio and eradicate any corruption within his institution.


3. (SBU) COMMENT: While the allegations may have originated
with an ambitious SENAD official hoping to discredit Ibarra,
allegations of irregularities in SENAD's food service
contracts (now serving as the basis for Giuzzio's
investigation) surfaced periodically over the past four
months. Giuzzio's investigation is a positive development.
It will either affirm SENAD's otherwise spotless record or
confirm wrongdoing and put this matter to rest. In the
latter case, Ibarra assures us he will quickly clean house.
END COMMENT.

Please visit us at http://www.state.sgov.gov/p/wha/asuncion

CASON