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. Please visit us at http://www.state.sgov.gov/p/wha/asuncion Cason