Paraguay prosecutor seeks key documents in $61 million IPS fraud case

Paraguay's prosecutor Julio Ortiz is intensifying the investigation into a massive alleged G61 billion ($61 million) embezzlement scheme at the Institute of Social Welfare (IPS). Ortiz has formally requested crucial financial documents from the current IPS leadership, demanding authenticated copies of administrative resolutions that appointed spending officers between 2022 and 2025. The prosecutor also seeks all supporting documentation related to the application of Law No. 1535/99 on State Financial Administration.

This demand is a critical step following the indictment of former IPS presidents Vicente Bataglia and Jorge Brítez, along with seven other former officials. The charges stem from severe irregularities in the bidding and awarding of a contract to Neighpart S.A. for the provision and installation of modular operating rooms at the IPS Central Hospital. This project, initiated in 2019, has reportedly never been completed or become operational.

While most indicted individuals have presented themselves to judicial authorities and received precautionary measures, Bataglia's situation took a dramatic turn. After being a fugitive with an arrest warrant, he surrendered to the prosecutor's office. His hearing for the imposition of measures is scheduled for August 20. The prosecutor's office has warned of legal consequences under Article 281 of the Criminal Procedure Code for non-compliance with the document request, underscoring the urgency and seriousness of the ongoing investigation into the alleged financial malfeasance at the public health institution.