New Charge Filed Against Miguel Prieto Over Alleged Diversion in Hospital Construction

Former Ciudad del Este mayor Miguel Prieto Vallejos faces a new formal accusation over alleged breach of trust in the construction and improvement of the city’s Regional Hospital. Prosecutors say the municipality paid for work that differed substantially from what contractors actually completed.

The accusation was filed by prosecutors Yeimy Adle Monges, María Verónica Valdez and Silvio Corbeta Dinamarca of Paraguay’s Specialized Economic Crimes and Anti-Corruption Unit. They also accused Sebastián Martínez Insfrán, identified in the filing as a municipal director, and councilwoman Valeria Fabiana Romero Escobar as alleged accomplices.

According to the prosecution document, Prieto transferred a total of G. 11,295,555,300 to the Local Health Council between 2019 and 2022. The money came from fees, rents and charges collected at the bus terminal. It was intended to fund medical equipment, supplies and improvements to the Regional Hospital’s buildings.

Prosecutors allege that the council, chaired by Walter García, failed to follow the required planning, contracting and oversight procedures. They say that process led to eight contracts with SERVMAQ and M&M CONSTRUCTORA outside the normal scrutiny mechanisms.

Later inspections allegedly found significant differences between the amounts paid by the municipality and the work completed at the medical center. A prosecutorial expert assessment estimated that inadequate oversight, a lack of effective compensation and payments for uncertified work caused an economic loss of about G. 757,166,276 to the Ciudad del Este municipal treasury. Prieto is also currently facing a public trial in another alleged corruption case known as “Tía Chela.”