CODEL GRANGER IN PARAGUAY

UNCLAS ASUNCION 000588

SENSITIVE
SIPDIS
STATE FOR WHA/BSC MARY DASCHBACH

E.O. 12958: N/A
TAGS: PGOV OREP PREL PA SNAR
SUBJECT: CODEL GRANGER IN PARAGUAY


1. (SBU) SUMMARY: House Appropriations Committee Member Kay
Granger (R- Texas) led a delegation to Paraguay September 2-5.
Codel Granger conveyed U.S. support for Paraguay's fight against
corruption and drug trafficking. Meeting with a variety of law
enforcement and criminal justice partners throughout the visit,
Congresswoman Granger expressed an interest in helping Paraguay
overcome some of its greatest challenges. END SUMMARY.




2. (U) Codel Granger also included Commerce, Justice and Science
Appropriations Subcommittee staff John Blazey and Diana Simpson.
Air Force liaison Lt. Col. William Doug Hall and DEA legislative
relations staff members Mandy Lord and Sheldon Shoemaker also
participated.


-------------- --------------
--------------
PARAGUAYAN COUNTERNARCOTICS EFFORTS: A WORK IN PROGRESS
-------------- --------------
--------------

3. (U) Minister Cesar Aquino, the director of Paraguay's
Anti-Narcotics Secretariat (SENAD) lead Congresswoman Granger on a
tour of their headquarters in Asuncion. The building complex is a
small, underequipped facility that boards a few dozen SENAD agents.
The Minister spoke of the challenges faced by SENAD. With only
approximately 140 agents to combat drug trafficking nationwide,
SENAD suffers from a lack of personnel and resources. The Minister
claimed that SENAD was in line for a modest budgetary increase in
the upcoming fiscal year, but commented on the importance of
continued U.S. support.



-------------- --------------
BRINGING THE ACTORS TOGETHER
-------------- --------------




4. (SBU) Ambassador Liliana Ayalde hosted a small working
reception for key Paraguayan and Embassy law enforcement contacts.
Among the Paraguayans attending were representatives from SENAD,
the Chief of the Paraguayan National Police, the Director of
Paraguay's anti-money laundering secretariat (SEPRELAD) and the
Director of Paraguay's intellectual property enforcement unit
(UTE). The Ambassador asked each participant to reflect on their
major challenges. Consistent themes included the need for
additional specialized training and improved coordination between
agencies. Asked how many times the representatives of the
Paraguayan agencies present had met to discuss common enforcement
priorities, the answer was 'never'. The Ambassador commented that
it is not uncommon for the U.S. Embassy to be the catalyst for
inter-agency coordination on a number of important topics.
Congresswoman Granger's experience as the mayor of Fort Worth,
Texas was useful as she shared lessons learned from tackling
security issues in a city with roughly the population of Paraguay.


-------------- --------------
--------------
THE MINISTER OF INTERIOR AND THE TRI-BORDER
-------------- --------------
--------------




5. (SBU) Ambassador Ayalde joined the delegation for a breakfast
with Paraguayan Interior Minister Rafael Filizzola and his chief of
staff. Filizzola articulately described the challenges facing the
Paraguayan police. Claiming a budgetary success his predecessors
never had, Filizzola noted he was not waiting for assistance to
begin the generational task of reforming the police. Appreciative
of the many training programs offered by the Embassy, Filizzola
stated that more training would be of great value to an institution
seeking to transform itself. In addition, Filizzola added that the
U.S. could offer more assistance procuring needed equipment,
stating that Paraguay has the money to purchase equipment but not
the wherewithal to know what to order and how to procure it.
Filizzola said that, for example, in a case only days earlier, the
police had been unable to locate a kidnapping victim who was being
held in a home outside of Ciudad del Este. Although the ransom
negotiations took place over a matter of days and the victim never
moved locations, the police had been unable to pinpoint his

location because they do not have cellular direction finding
equipment. The 19-year old victim was murdered during a botched
ransom handover. Filizzola said that U.S. assistance procuring
this type of equipment could have saved a life and improved the
public perception of the police.




6. (SBU) The Congressional delegation also travelled to Ciudad del
Este, Paraguay. Best known as a hub for contraband smuggling,
intellectual property violations and as a source of possible
terrorism financing, Ciudad del Este sits on the border of
Argentina, Brazil and Paraguay. After a quick lay of the land,
Congresswoman Granger visited the dilapidated SENAD office in
Ciudad del Este. The office grounds contained a landfill-like pile
of seized assets unable to be used or sold under Paraguay's arcane
asset forfeiture laws. Agents spoke to the Congresswoman of their
successes, but also to being outmatched by the resources and
strength of the drug traffickers. Two counter-narcotics
prosecutors joined the delegation for lunch. Pointing fingers at
Paraguay's inefficient and corrupt justice system, the prosecutors
also spoke of their success working with DEA-sponsored SENAD vetted
units.


-------------- --------------
LAW ENFORCEMENT AND CONGRESS
-------------- --------------


7. (SBU) Over lunch with 12 Paraguayan senators and
representatives that form the bulk of the legislature's
counter-narcotics committee, the Congresswoman spoke of the need
for Paraguay to speak with one voice on matters related to
combating the illegal drug trade. Many Paraguayan congressman
noted progress combating marijuana cultivation would require a
serious and sustained commitment to addressing the underlying
social problems. Noting that poor farmers can earn far more money
growing marijuana than any other sustainable crop, the legislators
lamented the lack of a national program offering alternatives.
Other legislators added that the issue of demand needed to be
addressed in addition to supply. All agreed that focusing on
better cross-border cooperation with the major destination
countries of Brazil, Argentina and European countries would provide
a better chance of denting the ever-growing drug problem.



--------------
MONEY LAUNDERING
--------------




8. (U) Congresswoman Granger also met with the director of
SEPRELAD Oscar Boidanich. Director Boidanich noted that SEPRELAD
is a relatively newly created entity made up of personnel on
temporary detail from other agencies. Lacking a consistent and
well-trained staff, SEPRELAD is less effective than it otherwise
might be. Boidanich commented that he hopes the recently enacted
money laundering legislation will be a catalyst for an increased
focus on SEPRELAD's mission. He plans to institute a
fee-for-service system in which money remitters and banks pay
transaction fees to SEPRELAD thereby obviating SEPRELAD's need for
a piece of the national budget. The Congresswoman stated that she
saw much promise in SEPRELAD under Boidanich's leadership.



--------------
U.S. ENGAGEMENT CRITICAL

--------------



9. (SBU) COMMENT: Congresswoman Granger noted that U.S.
assistance in Paraguay seems uniformly well received. Given the
fragile nature of Paraguay's newly re-created law enforcement
institutions, any amount of U.S. assistance provides great impact.
Congresswoman Granger encouraged a continuous and sustained
commitment by the Embassy to assist Paraguay in overcoming some of
its greatest challenges. END COMMENT.


Codel Granger did not have an opportunity to clear on this message.
AYALDE