PARAGUAY POLITICAL AND ECONOMIC UPDATE JULY 14-27,

UNCLAS ASUNCION 000632 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 JULY 14-27, 2007 REF: 2007 ASUNCION 00582 ¶1. (U) SUMMARY: -- Yeehah! Prosecutors Praised -- Utave: Too Little, Too Late -- SENAD In Action -- United Nations Funds Family Health -------------- YEEHAH! PROSECUTORS PRAISED -------------- ¶2. (U) Ambassador Cason held a "white hat" ceremony on July 20 applauding the efforts of the Economic Crimes and Anti-Corruption Unit of the Attorney General,s (AG) Office. Ambassador Cason presented a white cowboy hat to Carlos Arregui, head of the unit, to express U.S. support for the unit,s anti-corruption activities. Ambassador Cason explained that the "good guys" who fought for justice in the Wild West wore white cowboy hats and were not unlike the unit,s hard work in the "rough territories" of Paraguay. Arregui,s unit has brought cases against many high profile politicians, including an ongoing corruption case against former foreign minister Ruben Melgarejo Lazoni and prosecutor Juan Claudio Gaona. This event garnered huge media attention and widespread public support for the beleaguered prosecutors. It may also have forestalled nefarious efforts to sack all crime-busters. -------------- UTAVE: TOO LITTLE, TOO LATE -------------- ¶3. (SBU) According to a Customs report, the defunct customs enforcement institution Utave seized over USD 715,000 worth of contraband goods between the months of October 2006 and May 2007. However, its successor, Detave, estimates that it seized approximately USD 1 million in contraband since it became operational in late in April. In accordance with Component 7 of the MCC Threshold Program and with USG support, GOP Customs formed Detave in September 2006. Unlike its predecessor, Detave utilizes the combined efforts of GOP Customs, Navy, and National Police to combat contraband. In spite of Detave's recent success, post has learned that a substantial portion of recent travel vouchers submitted by Detave agents do not reflect actual amounts spent, indicating the possibility of fraud. The Finance Ministry will shortly begin an investigation into the matter. -------------- SENAD IN ACTION -------------- ¶4. (U) The National Anti-Drug Secretariat (SENAD) seized ten kg. of cocaine en route to Ciudad del Este and three kg. of cocaine en route to Madrid, Spain in the past month. SENAD confiscated two kg. of cocaine and arrested six individuals on July 17, one of whom worked for the National Police's Special Operations Group (SOP). SENAD seized another transshipment of cocaine on July 18 in the amount of eight kg. and arrested a Bolivian citizen. SENAD confiscated three kg. of cocaine in Asuncion,s Silvio Pettirossi International Airport on July 23 destined for Madrid, Spain. Police arrested one individual. According to its quarterly reports, SENAD seized 468.6 kg. of cocaine and 42,795 kg. of marijuana in the first half of 2007. (reftel). -------------- UNITED NATIONS FUNDS FAMILY HEALTH -------------- ¶5. (U) The United Nations Population Fund (UNFPA) donated on July 17 USD 200,000 to the Ministry of Health. Health Minister Oscar Martinez explained that the funds will be used to reduce the country,s infant/mother mortality rate and to provide training in the areas of general health, family planning, and HIV/AIDS prevention. CASON