FIU CHIEF YEGROS FIRED

C O N F I D E N T I A L ASUNCION 000650 SIPDIS SIPDIS PASS TO WHA/BSC, S/CT, EB, WHA/EPSC, INL E.O. 12958: DECL: 08/08/2027 TAGS: EFIN KCRM PAC PTER SNAR PA SUBJECT: FIU CHIEF YEGROS FIRED REF: ASUNCION 609 Classified By: Pol/econ Chief Joan Shaker; reasons 1.4 (b) and (d). This cable is being retransmitted as a correction. ¶1. (U) After weeks of speculation, President Duarte announced the removal of SEPRELAD (Paraguay's FIU) chief Carlos Yegros late August 7. Embassy contacts reported that Yegros resigned July 30, but that Minister of Industry and Commerce Jose Maria Ibanez did not immediately accept his resignation. According to press reports, Duarte fired Yegros in the wake of the July 31 airport currency exchange house robbery. Yegros' successor is former Central Bank of Paraguay President Angel Gabriel Gonzalez. ¶2. (C) COMMENT: It's unclear at this time what Yegros' role was (if any) in the July 31 robbery. It's likely that the press reports are a fig leaf meant to move him out of the way. Due to his incompetence, negligence and acts of commission, the Embassy had lost confidence in him (reftel). Yegros' replacement is a long-awaited, positive step. With Gonzalez in place, we will quickly move forward with cooperation with SEPRELAD on pending issues. END COMMENT. CASON