PUBLIC VIEWS DUARTE ADMINISTRATION MOST CORRUPT IN

UNCLAS ASUNCION 001057

SIPDIS

SIPDIS

PASS TO WHA/BSC KREAD

E.O. 12958: N/A
TAGS: PGOV ECON PA
SUBJECT: PUBLIC VIEWS DUARTE ADMINISTRATION MOST CORRUPT IN
DECADES


1. (U) SUMMARY: Transparency International/Paraguay's (TP)
2007 corruption survey indicated that the public considers
the Duarte administration the most corrupt since 1997. The
survey published a variety of corruption indicators revealing
that Paraguayans' primary concerns are corruption,
unemployment, crime, poverty and hunger. The survey
explained Paraguayans disapprove of the Duarte administration
particularly because of corrupt political use of state
resources. END SUMMARY.


2. (U) Transparency Paraguay's annual corruption survey
released November 6 indicated that the public considers the
Duarte administration more corrupt than any administration
since the Wasmosy era (1992-97). While only 6.8 percent of
the public perceived the Duarte government as corrupt in
2004, that figure rose to 37.7 percent this year. The survey
also indicated that the public considers the Duarte
administration more corrupt than those of former dictator
Alfredo Stroessner (5.8 percent); Gonzalez Macchi (25.6
percent),who was convicted of embezzling USD ten million
from two failed Paraguayan banks in 2000; Cubas Grau (1.1
percent); and former president and alleged drug trafficker
General Andres Rodriguez (1.1 percent).


3. (U) The TP survey included 40 corruption indicators
measuring the public's perception of corruption and its
affect on society and public institutions. The survey,
conducted between July and August, analyzed the opinions of
1,232 participants. The survey revealed that Paraguayans'
primary concerns include unemployment (74.2 percent),crime
(55.8 percent),poverty and hunger (41.1 percent),the
influence of corruption (23.5 percent),public health (18.1
percent),and education (13.6 percent). The survey also
showed that Paraguayans believe that the country's most
corrupt institutions include the national police (73
percent),the Duarte administration (62.6 percent),Congress
(59.7 percent),political parties (49.5 percent),the
judiciary (38.4 percent),immigration officials (33.4
percent),and public employees (26.9 percent). The survey
identified the least corrupt institutions as the Catholic
Church (65.8 percent),television-based media (58.2 percent),
civil society (44.1 percent),and the written press (43.4
percent).


4. (U) The TP survey's outcome differs from the Millennium
Challenge Corruption's corruption indicators, which indicate
that Paraguay rose from the eighth percentile among Low
Income Countries (LCIs) in 2004 to 30th in 2007. The MCC
analyzed data from various sources, including Transparency
International, the World Bank, the World Economic Forum,
Global Insight, Freedom House, and the Economist Intelligence
Unit to determine Paraguay's performance and benchmarked it
against other LCIs.


5. (U) COMMENT: The TP survey underscored some reasons why
Paraguayans disapprove of the Duarte administration.
Although public perceptions soften over time -- leading to
increased scrutiny of the current administration and
nostalgia for past governments -- the Duarte administration
has repeatedly been plagued by credible accusations that it
has misappropriated public resources. TP's survey indicates
that Paraguayans characterize the Duarte administration as
corrupt for its misuse of public funds (particularly Itaipu
Dam resources) for political campaigns, commandeering of
government aircraft and vehicles by political candidates, and
acquisition of large personal fortunes by government
officials during their terms in office. Whether corruption
allegations will move voters in the April elections to unseat
the Colorado Party is another matter entirely. END COMMENT.

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