Identifier
Created
Classification
Origin
07ASUNCION403
2007-05-18 16:16:00
UNCLASSIFIED
Embassy Asuncion
Cable title:  

PARAGUAY POLITICAL AND ECONOMIC UPDATE MAY 12-18,

Tags:  PGOV PHUM PREL ECON PA 
pdf how-to read a cable
VZCZCXYZ0000
RR RUEHWEB

DE RUEHAC #0403/01 1381616
ZNR UUUUU ZZH
R 181616Z MAY 07
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC 5742
INFO RUCNMER/MERCOSUR COLLECTIVE
RUMIAAA/USCINCSO MIAMI FL//SCJ3/SCJ33/SCJ34/SOCSO LNO//
RHEHNSC/WHITE HOUSE NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
UNCLAS ASUNCION 000403 

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 ECON PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE MAY 12-18,
2007

REF: ASUNCION 0383

UNCLAS ASUNCION 000403

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 ECON PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE MAY 12-18,
2007

REF: ASUNCION 0383


1. (U) SUMMARY:

-- Building a Transparent Court
-- Paraguay Attracting Call Centers
-- Health Ministry Milk Program Under Scrutiny
-- New Judges (Again) for Ycua Bolanos Panel
-- MCC Director Visits Paraguay

MCC DIRECTOR VISITS PARAGUAY


2. (U) MCC Threshold Programs Director Maria Longi visited
Paraguay last week to review progress under the GOP,s USD 35
million MCA Threshold Program dedicated to fighting
corruption and informality. Longi conducted a wide range of
meetings with top level GOP counterparts, private sector
leaders, civil society representatives, and other key
multilateral donor institutions. The meetings gave Longi an
on-the-ground look at program performance and outstanding
challenges. Apart from specific discussions on the ten
Threshold program components, GOP reps stressed the
country,s keen interest in qualifying for an MCA compact and
a planned trip of Minister Carlos Walde and other GOP reps
(week of June 11) to Washington to report on progress in
addressing MCC indicators.

HEALTH MINISTRY MILK PROGRAM UNDER SCRUTINY


3. (U) The Controller General's investigative support unit
audited the Ministry of Health's milk program for pregnant
women and malnutritioned children and discovered
irregularities. The Health Ministry paid nearly 50 percent
of the value of the contract (approximately USD 1 million) to
JVL Meta SRL, the company that won the contract, without
receiving any milk. The case is still under investigation.
(NOTE: The Controller General's investigative support unit is
funded by USAID. END NOTE.)

NEW JUDGES (AGAIN) FOR YCUA BOLANOS PANEL


4. (U) German Torres, Blas Cabriza and Bibiana Benitez are
the most recent set of judges selected to preside over the
second Ycua Bolanos fire case May 13 (reftel). Torres is set
to be the President of the Court. There has been no
indication that any of them will recuse themselves. (NOTE:
More than 58 judges recused themselves, 3 of them just three
weeks ago. END NOTE.)

BUILDING A TRANSPARENT COURT


5. (U) Alicia PuCHETTA, the President of Paraguay,s Supreme
Court, and the USAID Director publicly launched a new service
designed to provide citizens with greater access to clear and
timely information regarding basic legal rights and public
services. The service will also help answer general
questions on judicial operations and proceedings. The Court,
with USAID assistance, is now providing both on-site and
call-in information services for citizens designed to
demystify and make more transparent Paraguay,s opaque
judicial system.

PARAGUAY ATTRACTING CALL CENTERS


6. (U) At least three companies have recently invested or
announced future investments in call centers in Paraguay.
Spanish company Bouncopy began operations in early 2007 and
currently employees 70, with a goal of expanding to 750
employees by the end of 2008. According to local press
reports, Spanish company Angel PC has also opened a call
center with 300 employees, and the Minister of Industry and
Commerce is courting Spanish firm Atento, which is also
considering establishing a call center in Paraguay. Most of
the operations are established under Paraguay,s maquila law,
which confers significant tax benefits. (NOTE: The MCC
Threshold Program has a component supporting the GOP,s


efforts to attract maquila operators and thus create more
legitimate employment. END NOTE.)
CASON