Asunción Municipality Faces Allegations of G. 5 Billion Shortfall and "Parallel Cash Boxes"

Candidates for the Municipal Council in Asunción have raised alarms over a purported scheme of institutional evasion and the existence of "parallel cash boxes" within the municipality. They allege that substantial funds, particularly from major public events, are being diverted, causing a significant financial deficit.

Mauricio Maluff and Noelia Díaz, candidates from the "Unidos por Asunción" alliance, presented findings based on public information requests. Their analysis indicates a potential loss of at least G. 5 billion for the municipality. They highlighted that while the municipality declared only G. 600 million in revenue from public events in 2023, this figure inexplicably quadrupled to G. 2.5 billion in 2025, a year marked by administrative changes.

Maluff explained that a mandatory tax on ticket sales for public events has been in place for decades. However, the declared revenue from recent mega-events appears suspiciously low compared to their scale and attendance. Even with conservative estimates, assuming half-capacity crowds and the lowest possible tax rates, the municipality should have collected at least G. 7.5 billion. The discrepancy points to a significant amount of money unaccounted for.

The candidates expressed frustration over the lack of transparency, noting that formal requests for information on ticket sales and revenue collection were met with generic responses. They argue that despite Asunción experiencing a boom in commercial activity and attracting tourists, its public infrastructure, such as sidewalks and public transport, remains inadequate, further exacerbating the issue of lost revenue.