Chinese desk scandal should not be whitewashed

Paraguay's Anti-Corruption Unit has asked a court to close a case initiated in March 2025 concerning the alleged misuse of funds in the purchase of furniture for 1,380 schools. The deal, valued at over 310.6 billion guaraníes (approximately $32 million), was financed by Itaipú Binacional, a binational hydroelectric company. The unit argues that after accounting for import, transport, assembly, insurance, taxes, and operational costs, the average price of $123 per desk-and-chair set was not higher than local market prices, thus causing no financial damage to Itaipú.

However, the decision to close the case has drawn sharp criticism. Opposition lawmakers had initially denounced the purchase, alleging "gross overpricing." They claimed the import cost from China was between $15 to $30 per set, significantly less than the $96 average paid. The furniture itself has also been criticized for its poor quality, with reports of desks already being discarded in one school.

Further complicating the matter are allegations of irregularities in the bidding process. The furniture was reportedly acquired from a Chinese merchant, Long Jiang, who is said to have ties to Vice President Pedro Alliana, as the merchant's private plane was allegedly used by Alliana. This same plane was reportedly used by President Santiago Peña and his family for a trip to Brazil. National steel and metallurgy industries claim the tender's conditions were manipulated to favor the winning bidder, Kamanya SA, a company primarily dealing in textiles. They argue that national manufacturers were excluded, and the Chinese bidder was the sole participant after others were disqualified due to specifications that were altered at the last minute.

The Anti-Corruption Unit's assertion that no harm was done to Itaipú's assets is contested by critics who point to the alleged preferential treatment in the bidding and the questionable quality of the goods. The decision to recommend closure, despite these concerns, raises questions about transparency and accountability in public procurement processes in Paraguay.