Paraguay Municipality's Finances Lack Documentation, Audit Finds

The Comptroller General's Office (CGR) has flagged significant financial irregularities within the Bahía Negra Municipality in Paraguay, preventing a clean approval of its financial statements. An audit covering 2024 and the first five months of 2025, under the administration of Mayor Joao Ferreira, revealed numerous expenditures lacking proper legal documentation.

Key discrepancies include over G. 260 million allocated for street and road repairs within the municipality, for which no hiring commitment could be found. Additionally, G. 70.5 million spent on machinery rental and G. 24 million for consulting services were processed without the required social security compliance certificates or hiring commitments.

The audit also highlighted delays in transferring over G. 188 million to the Alto Paraguay Governorate, representing 15% of property tax revenue for 2024. Furthermore, more than G. 330 million paid for cleaning, sanitation, and fumigation services in 2024 lacked tax compliance certificates and hiring commitments.

These findings point to potential misallocation and delays in public fund transfers, expenditures without tax or social security backing, and vulnerable public works during Mayor Ferreira's tenure. The report comes as the community of Bahía Negra grapples with neglected infrastructure, particularly its unpaved roads, which become nearly impassable during the rainy season.