Former Paraguayan Social Security chief ordered to house arrest over alleged $10.2 million fraud

Vicente Bataglia, who led Paraguay's Social Security Institute (IPS) between 2021 and 2023, has been placed under house arrest. A Paraguayan judge issued the order, which includes the use of an electronic ankle monitor, as Bataglia faces accusations of causing significant financial harm to the institution. He is among nine individuals indicted for alleged patrimonial damage estimated at $10.2 million.

The charges stem from the alleged granting of unjustified extensions and initial payments to a company tasked with installing modular operating rooms at the IPS Central Hospital in Asunción. The Public Prosecutor's Office claims that payments totaling 53 billion guaranis (approximately $8.8 million) were authorized without proper justification. Subsequently, additional payments brought the total to 61 billion guaranis ($10.2 million), despite known issues with contract execution due to a lack of planning and prior evaluation of the building's infrastructure.

Bataglia returned to Paraguay from Italy on August 12 and appeared before the Public Ministry, which had requested the lifting of a prior arrest warrant. However, Judge Rodrigo Estigarribia noted that Bataglia's entry into the country was not formally registered, raising concerns about his potential to comply with judicial processes if granted conditional liberty. In a separate but related case, another former IPS head, Jorge Brítez, was granted conditional liberty on August 6, citing his age and a property guarantee.