SENAD UNDER POLITICAL FIRE

UNCLAS ASUNCION 000230

SIPDIS

SENSITIVE
SIPDIS

TO WHA/BSC KBEAMER, INL/LP DGRAHAM

E.O. 12958: N/A
TAGS: SNAR PREL PA
SUBJECT: SENAD UNDER POLITICAL FIRE


1. (SBU) Leading daily ABC Color ran a series of articles from
August to December 2007 alleging administrative irregularities
within Paraguay's Anti-Narcotics Secretariat (SENAD). Two former
SENAD administrators (Brunilda Salomon and Federico Cabral) were
alleged to be involved in administrative misconduct for not
following acquisition regulations (conducting unjustified direct
purchases) and for receiving kick-backs from vendors. Salomon was
separated from SENAD; she plea-bargained her case. Public
prosecutor Arnaldo Guizzio opened an investigation of Cabral in
December 2007 and formally accused him of failing to follow
acquisition regulations (related to SENAD's contracts with four
separate food vendors) and of receiving kickbacks. Cabral was also
separated from duty; the criminal case against him is ongoing.

2. (SBU) ABC Color ran a second series of articles in mid-March,
repeating the previous allegations and asserting new ones. ABC
charged that SENAD officials improperly submitted duplicate purchase
orders for food in January and February 2007. One vendor, Marina
del Sol, made a cash payment of three percent (USD 633) of the
awarded contract to Miguel Angel Aveiro as head of SENAD's
cafeteria. The investigation is ongoing and no formal indictments
have been made. On March 28, ABC Color asserted yet another charge
-- that Cabral forged documents to justify operations that never
occurred; that case is also pending investigation. Given the new
allegations, Paraguay's Comptroller General may open an
investigation.

3. (SBU) COMMENT: The latest string of articles repeats previous
(somewhat flimsy and unfounded) allegations, and the new charges
appear to be more a political tactic to discredit SENAD as part of
President Duarte's administration than an effort to root out
corruption. (NOTE: ABC Color is widely viewed as anti-Colorado. END
NOTE). Another theory is that a disgruntled former employee (unhappy
with SENAD's Minister Ibarra) may be the source of the allegations.
In any case, Ibarra continues to cooperate with all investigations
and has promised to quickly address any corruption issues. If the
Comptroller General investigates SENAD, Ibarra has promised it
unlimited access. The Ambassador has stated publicly that the
Embassy's cooperation with SENAD will continue, and that the Embassy
trusts that if there has been any wrongdoing, the Public Ministry
(which the Embassy also supports) will uncover same during its
investigation. END COMMENT.
CASON