Scandal Over Secret Agreement with Brazil: President of Paraguay Might Face Trial

RIO DE JANEIRO, BRAZIL – The president of Paraguay, Mario Abdo Benítez, said on Tuesday that he was prepared to take part in a trial regarding the negotiations of a terminated hydropower agreement of the Itaipú power plant with Brazil.

The opposition accuses the right-wing politician of concluding a secret bilateral agreement on the Itaipú hydropower plant to the detriment of Paraguayan interests. After the Three Gorges Dam in China, Itaipú is the world’s largest hydroelectric power plant. It is located on the border between Paraguay and Brazil.

In front of hundreds of supporters of the ruling Colorado party, Benítez demanded on the central democracy square in the Paraguayan capital Asunción that the motion for a political trial against him be dealt with in the National Congress “as soon as possible”. Only in this way can peace be restored in the country. “I have nothing to fear. I am ready to face a trial,” he said.

Embattled Benítez insists on a parliamentary debate on a possible corruption trial in the knowledge that the opposition does not have the necessary votes to initiate such a trial.

Since last week, social movements and opposition parties have been demanding the resignation of the president over the scandal surrounding the agreement with neighboring Brazil. According to Paraguayan newspaper ABC Color, police violently attacked government opponents during demonstrations.

ABC Color last week published transcripts of private talks between Benítez and Pedro Ferreira, former head of the National Energy Agency (ANDE). It shows that the head of state was aware of the questionable terms of the agreement. ANDE is said to have suffered losses of up to US$250 million (R$1 billion).

A 172-page motion for removal from office is supported by some 32 MPs. They question the actions of the president, vice-president Hugo Velázquez, and Finance Minister Benigno López in the negotiations with Brazil on the Itaipú hydropower plant.

Paraguay withdrew from the treaty on August 1st. The opposition suspects that the unfavorable conditions for Paraguay were caused by corruption.