Asunción Municipality Faces Contempt Charges Over Unpaid Compensation

The Municipality of Asunción is on the verge of a contempt of court charge as it has failed to pay a former employee the compensation ordered by the judiciary nearly two decades ago. Victorino Soto Mendoza, who worked for the municipality for over 10 years, won his case after being unfairly dismissed in January 2005.

The Supreme Court of Justice upheld the ruling, confirming that Soto Mendoza was indeed an employee with a fixed schedule and hierarchical duties, despite being hired under a contract for services. The court found the dismissal to be unlawful and ordered the municipality to pay G. 20 million, plus 20% annual interest since March 2005. Due to the prolonged delay, the debt has now ballooned to approximately 100 million guaraníes.

Despite promises to include the payment in the municipal budget, the process remains stalled. Soto Mendoza's lawyer, Raúl Mongelós, highlighted that public institutions often use such contracts to circumvent labor laws and employee protections. The ongoing failure to comply with the court's order places current municipal administrator Luis Bello at risk of criminal prosecution for contempt.