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DNCP Continues Verifying Failed Petropar Contract, Plans Inquiry into Qatari Firm
๐Ÿ‡ต๐Ÿ‡พ Paraguay /Economy & Trade

DNCP Continues Verifying Failed Petropar Contract, Plans Inquiry into Qatari Firm

From ABC Color · (8h ago) Spanish Critical tone

Translated from Spanish, summarized and contextualized by DistantNews.

TLDR

  • Paraguay's National Directorate of Public Procurement (DNCP) is still verifying a failed contract between state oil company Petropar and Qatari firm Doha Holding.
  • The DNCP plans to open an administrative inquiry once Petropar submits pending documents to determine responsibilities and potential sanctions against the Qatari company.
  • The contract was for 100,000 metric tons of gasoil worth over $61 million, but Doha Holding failed to deliver any fuel, leading Petropar to execute a performance guarantee.

The National Directorate of Public Procurement (DNCP) is diligently continuing its preliminary investigation into the failed contract between Petrรณleos Paraguayos (Petropar) and the Qatari firm Doha Holding Group LLC. This situation, involving a significant sum of over US$61 million for 100,000 metric tons of gasoil, has raised serious concerns about accountability and the vetting of international suppliers.

Director Agustรญn Encina confirmed that the process is ongoing, awaiting crucial documents from Petropar. Once these are received, a legal opinion will be issued, paving the way for an administrative inquiry into Doha Holding. This inquiry is essential to ascertain the full extent of responsibilities and to determine appropriate sanctions, which could range from hefty fines to a ban on future government contracts for the Qatari company and its associated individuals.

Petropar was forced to rescind the contract and execute a performance guarantee of US$3,050,000 after Doha Holding failed to deliver any of the contracted fuel, despite multiple extensions. The state oil company also rejected the firm's claim of "force majeure" due to Middle East conflict, as no documentation was provided to substantiate the existence or shipment of the product. This highlights a critical lapse in due diligence, particularly concerning the guarantee, which was reportedly issued only in late December 2025.

This case underscores the importance of robust oversight in public procurement. The DNCP's thorough verification process, even if it takes time, is vital to ensure that taxpayer money is protected and that companies engaging with state entities are held to their commitments. The potential sanctions against Doha Holding send a clear message about the consequences of non-performance and the commitment to transparency in Paraguay's public contracts.

No terminรณ aรบn la investigaciรณn previa porque estamos pendientes del envรญo de documentos por parte de Petropar; una vez enviados estos documentos se harรก el dictamen jurรญdico pertinente y se abrirรก el sumario administrativo a la empresa.

โ€” Agustรญn EncinaDirector of the DNCP, explaining the delay in the investigation due to pending documents from Petropar.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.