PARAGUAYAN SENATE OVERRULES PRESIDENT ON PENAL CODE

UNCLAS ASUNCION 000425

SENSITIVE
SIPDIS

PASS TO DOJ KOCONNOR, USAID/LAC/SA AND MCC MKLADAKIS; STATE
FOR WHA/BSC MDRUCKER, CCROFT, KBEAMER; INL/P DGRAHAM;
INL/CCJ JSHOWELL; AND G/TIP BFLECK

E.O. 12958: N/A
TAGS: PTER KCRM PREL PGOV ECON PA
SUBJECT: PARAGUAYAN SENATE OVERRULES PRESIDENT ON PENAL CODE

REF: A. 07 ASUNCION 420

B. 07 ASUNCION 1069

C. 07 ASUNCION 994

D. ASUNCION 405


1. (SBU) SUMMARY: Paraguay's Senate overruled President
Duarte's partial veto of the revised penal code June 25 and
passed it into law, ending the penal code's 15-month journey
through the legislative process. Final passage is a success
for Paraguay, but it still has much to do to reform its legal
and judicial systems. Post recognizes the continued need for
RLA presence to push the companion criminal procedure code
through the same legislative process. The revised penal code
-- to take effect in 2009 -- will give the new Lugo
administration the legal framework it needs to advance law
enforcement and judicial reform, two of its main priorities.
END SUMMARY.


2. (U) The Paraguayan Senate overruled President Nicanor
Duarte Frutos' partial veto of the revised penal code June 25
and passed it into law, ending the penal code's 15-month
journey through the legislative process (refs A and B).
Congress is to publish the newly amended penal code within
two weeks, and all changes officially go into effect one year
later. Although Duarte January 16 approved 67 of the 70
amendments to the penal code, he delayed final passage of the
penal code by vetoing three statutes, arguing that they
watered down current laws -- statutes on pimping, child
pornography, and the conditional release of prisoners and
detainees. By overruling Duarte and passing it into law,
both the Senate and the Chamber of Deputies upheld the
amended penal code as originally approved by Congress in
December 2007. The penal code amendments include significant
new statutes on money laundering, intellectual property
rights (IPR),and trafficking in persons (TIP),among many
others.


3. (U) Final passage of the new penal code is a success for
Paraguay, but it still has much to do to reform its legal and
judicial systems (refs A and B). Paraguay must still make
substantial modifications to its criminal procedure code to
move its judicial system toward an accusatory criminal
justice system. These much-needed changes would enable
prosecutors and judges to investigate and prosecute cases
effectively under the penal code. The Justice Department's
Resident Legal Advisor (RLA) has been working closely and
creatively with the Paraguayan Congress to amend the criminal
procedural code. These amendments are currently pending with
the Chamber of Deputies Legislative Committee (ref C).
Without new funding for the position, the RLA's work is
currently set to end in October. Were that to happen, the
amended criminal procedural code would undoubtedly languish
in Congress without his guidance.


4. (U) Ambassador and the Country Team recognize the
continued need for RLA presence to push the companion
criminal procedure code (ref C). Post continues to seek
additional funding to allow the RLA to continue his work
through the Justice Department's OPDAT Program. In addition,
the RLA would shepherd a terrorism financing statute through
the legislature. (NOTE: Egmont Corporation just this week
suspended Paraguay due to its lack of a terrorist financing
law. Its passage thus will be a high priority for the Lugo
administration (ref D). END NOTE.) The RLA would also work
with Congress to draft and implement a new asset forfeiture
law to accompany the penal and criminal procedural codes.
These criminal judicial reforms make the RLA an integral --
and virtually indispensable -- member of the Country Team.


5. (SBU) COMMENT: The revised penal code will give the new
Lugo administration the legal framework it needs to advance
law enforcement and judicial reform, two of its main
priorities. Building on the success of the penal code, Post
will continue to work with the Paraguayan Congress to
implement further judicial reforms and support Paraguayan
fight against corruption. However, keeping the RLA at Post
is key to making this happen. END COMMENT.

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