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IPS head: 'I have to close all mouths of corruption' before considering contribution hike
🇵🇾 Paraguay /Crime & Justice

IPS head: 'I have to close all mouths of corruption' before considering contribution hike

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The president of Paraguay's Social Security Institute (IPS), Isaías Fretes, stated his priority is to eliminate corruption before considering an increase in employee and employer contributions.
  • Fretes acknowledged the IPS is not in a good financial state, citing a significant shortfall in funds for medications, but expressed hope for improvement within three months through financial restructuring.
  • He addressed recent accusations regarding IPS funds deposited in Ueno Bank, stating he was unaware of the specific allegations and emphasizing adherence to clear banking regulations.

Isaías Fretes, the president of Paraguay's Social Security Institute (IPS), declared that his primary mission is to eradicate corruption within the institution before any discussion of raising employee and employer contributions can occur. Fretes emphasized his commitment to "redirecting" the social security system, acknowledging that the IPS is currently facing significant financial challenges.

I have to close all the mouths of corruption.

— Isaías FretesThe president of the Social Security Institute (IPS) stated his priority is to eliminate corruption.

Speaking to reporters before attending President Santiago Peña's management report, Fretes revealed that the IPS has approximately 44 billion Paraguayan guaranis allocated for medication purchases, falling far short of the estimated 150 billion guaranis needed. He also noted a debt of 176 billion guaranis. Despite these difficulties, he expressed optimism that a financial "reengineering" process would yield positive results within two to three months, potentially reversing the current situation and allowing for better staff compensation.

I have the firm hope that here in two to three months, in a reengineering process, we will have good results and be able to reverse the situation.

— Isaías FretesIsaías Fretes expressed optimism about improving the IPS's financial situation.

Fretes directly addressed recent concerns raised by Senator Rafael Filizzola regarding the deposit of substantial IPS funds into Ueno Bank, an institution linked to political powers. The senator claimed "hundreds of millions of dollars" were placed in the bank. Fretes stated he was unaware of Filizzola's specific accusations and invited the senator to discuss the matter directly. However, he did acknowledge that "two or three banks have reached the limit" for holding IPS deposits, mentioning Ueno Bank among them, and stressed that clear rules govern these decisions.

I am unaware of the senator's denunciation and urged him to communicate with me.

— Isaías FretesFretes responded to Senator Rafael Filizzola's accusations regarding IPS funds in Ueno Bank.

When questioned about whether the IPS is a weak point in the government, particularly due to the previous administration under Jorge Brítez, Fretes asserted that efforts are underway to restore the institution to its former strength. He maintained a hopeful outlook, stating, "I have the firm hope that here in two to three months, in a reengineering process, we will have good results and be able to reverse the situation."

There are two or three banks that have reached the limit of what could be depositaries of the IPS.

— Isaías FretesFretes acknowledged that certain banks have reached their deposit limits for IPS funds.
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.

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