Itakyry Municipality Faces Allegations of Financial Irregularities

Municipal councilors in Itakyry, Paraguay, are preparing to file a formal complaint with the Comptroller General's Office, citing a series of alleged irregularities discovered within the municipality following the interim appointment of Mayor Verónica Ayala. These alleged discrepancies primarily involve improper exemptions from vehicle and commercial taxes, which may have benefited individuals close to the outgoing mayor, Miguel Soria.

Councilor Fabio Mendoza reported that the administrative review identified significant tax exemptions granted to affluent individuals, contravening the Organic Municipal Law. These exemptions, which should legally be limited to non-profit institutions like fire departments or health posts, were reportedly extended to family members of the former mayor. The detected financial damage from these exemptions alone is estimated at G. 152 million over a six-month period.

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We found that there were many exemptions for very wealthy people.

Further complicating the situation, the council has also flagged advance payments made to companies for road construction projects that have not yet been executed. Mendoza expressed concern that funds were transferred, sometimes even before contracts were signed, for work that may not have been completed. These findings add to the growing list of financial concerns surrounding the municipality's management. Miguel Soria resigned to seek re-election but failed to secure enough votes to maintain his political bloc's control, leading to a coalition of opposition councilors appointing Ayala.

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Some transfers of very large amounts were made in the last days of June for the repair and adaptation of roads. We don't know if those works exist.