Identifier
Created
Classification
Origin
08ASUNCION840
2008-12-17 18:40:00
CONFIDENTIAL
Embassy Asuncion
Cable title:
FORMER ITAIPU DAM DIRECTOR INDICTED FOR CORRUPTION
how-toVZCZCXYZ0004 OO RUEHWEB DE RUEHAC #0840 3521840 ZNY CCCCC ZZH O 171840Z DEC 08 FM AMEMBASSY ASUNCION TO RUEHC/SECSTATE WASHDC IMMEDIATE 7456 INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
C O N F I D E N T I A L ASUNCION 000840
SIPDIS
STATE FOR WHA/BSC MDASCHBACH, MDRUCKER
E.O. 12958: DECL: 12/31/2033
TAGS: PGOV ECON PHUM PA
SUBJECT: FORMER ITAIPU DAM DIRECTOR INDICTED FOR CORRUPTION
Classified By: DCM Michael J. Fitzpatrick for reasons 1.4 (b) and (d).
C O N F I D E N T I A L ASUNCION 000840
SIPDIS
STATE FOR WHA/BSC MDASCHBACH, MDRUCKER
E.O. 12958: DECL: 12/31/2033
TAGS: PGOV ECON PHUM PA
SUBJECT: FORMER ITAIPU DAM DIRECTOR INDICTED FOR CORRUPTION
Classified By: DCM Michael J. Fitzpatrick for reasons 1.4 (b) and (d).
1. (SBU) Paraguayan prosecutors indicted former Itaipu
Binational Enterprise (EBI) director (and current Colorado
Senator) Victor Bernal Garay December 11 on corruption
charges related to the alleged misuse of Itaipu Dam funds.
Judge Patricia Gonzalez, who oversees Bernal's case,
indicated December 11 that she would ask that the Paraguayan
Senate strip Bernal of his political immunity and clear the
way for him to be prosecuted. (NOTE: Bernal enjoys
political immunity as a senator. The Senate could not remove
Bernal from office until he is convicted of a crime. END
NOTE.) Once Gonzalez submits her formal request, the Senate
would have to vote on whether to strip Bernal of his
immunity. (Such a vote would not happen, in any event, until
Congress reconvenes in March).
2. (SBU) Lead prosecutor Gustavo Gamba asserted December 11
that Bernal compromised his position as EBI director for
failing to account for USD 76,000 in funds allocated to a
public works project in Minga Guazu, Alto Parana Department,
that was not completed. In addition to the Minga Guazu case,
prosecutors are investigating Bernal for other possible
improprieties, including siphoning Itaipu Dam funds set aside
for the NGO Fundacion Tesai, diverting Itaipu Dam funds to ad
agency Sistema Siete -- controlled by then-president Nicanor
Duarte Frutos -- to finance this year's Colorado Party
campaign, and personally enriching himself and his family.
Bernal called Gamba's case "aberrant" and "extravagant," and
claimed that he is being persecuted for political reasons.
3. (C) COMMENT: The indictment of Bernal -- one of the
highest-profile public figures during the last Colorado
government -- represents a high-profile test case for the
Lugo administration in its fight against corruption. Former
president Nicanor Duarte Frutos, who is also under
investigation -- but has not yet been indicted -- could be
next. However, unless some real progress is made on judicial
reform, the current Supreme Court, still firmly under
Colorado Party control, will likely send these cases to the
proverbial Paraguayan judicial "freezer." Such a move
itself, however, will only increase the social and political
pressures for wholesale political reform -- starting with the
membership of the Supreme Court itself. END COMMENT.
Please visit us at http://www.state.sgov.gov/p/wha/asuncion
AYALDE
SIPDIS
STATE FOR WHA/BSC MDASCHBACH, MDRUCKER
E.O. 12958: DECL: 12/31/2033
TAGS: PGOV ECON PHUM PA
SUBJECT: FORMER ITAIPU DAM DIRECTOR INDICTED FOR CORRUPTION
Classified By: DCM Michael J. Fitzpatrick for reasons 1.4 (b) and (d).
1. (SBU) Paraguayan prosecutors indicted former Itaipu
Binational Enterprise (EBI) director (and current Colorado
Senator) Victor Bernal Garay December 11 on corruption
charges related to the alleged misuse of Itaipu Dam funds.
Judge Patricia Gonzalez, who oversees Bernal's case,
indicated December 11 that she would ask that the Paraguayan
Senate strip Bernal of his political immunity and clear the
way for him to be prosecuted. (NOTE: Bernal enjoys
political immunity as a senator. The Senate could not remove
Bernal from office until he is convicted of a crime. END
NOTE.) Once Gonzalez submits her formal request, the Senate
would have to vote on whether to strip Bernal of his
immunity. (Such a vote would not happen, in any event, until
Congress reconvenes in March).
2. (SBU) Lead prosecutor Gustavo Gamba asserted December 11
that Bernal compromised his position as EBI director for
failing to account for USD 76,000 in funds allocated to a
public works project in Minga Guazu, Alto Parana Department,
that was not completed. In addition to the Minga Guazu case,
prosecutors are investigating Bernal for other possible
improprieties, including siphoning Itaipu Dam funds set aside
for the NGO Fundacion Tesai, diverting Itaipu Dam funds to ad
agency Sistema Siete -- controlled by then-president Nicanor
Duarte Frutos -- to finance this year's Colorado Party
campaign, and personally enriching himself and his family.
Bernal called Gamba's case "aberrant" and "extravagant," and
claimed that he is being persecuted for political reasons.
3. (C) COMMENT: The indictment of Bernal -- one of the
highest-profile public figures during the last Colorado
government -- represents a high-profile test case for the
Lugo administration in its fight against corruption. Former
president Nicanor Duarte Frutos, who is also under
investigation -- but has not yet been indicted -- could be
next. However, unless some real progress is made on judicial
reform, the current Supreme Court, still firmly under
Colorado Party control, will likely send these cases to the
proverbial Paraguayan judicial "freezer." Such a move
itself, however, will only increase the social and political
pressures for wholesale political reform -- starting with the
membership of the Supreme Court itself. END COMMENT.
Please visit us at http://www.state.sgov.gov/p/wha/asuncion
AYALDE