Paraguay's 'free rein' bill for state company transfers faces scrutiny

A contentious bill in Paraguay that would permit the "exceptional" transfer of thousands of employees from the financially troubled state-owned telecommunications company, Copaco S.A., to other government institutions has hit a roadblock. The Commission for Accounts and Control, led by César Cerini, avoided issuing a ruling on the controversial legislation, which critics argue grants politicians unchecked power.

The proposed law, championed by Congressman José Rodríguez, aims to allow Copaco employees to move to different state entities without undergoing the standard competitive selection process. This has raised alarms, with opponents suggesting it could become a "blank check" for politicians to place allies in public service, bypassing merit-based hiring. The move is seen as a potential "golden business" for political operators who could facilitate these transfers.

Furthermore, the bill is seen as contradicting the recently enacted Public Function and Civil Service Law (Law No. 7445/2025). The proposed legislation explicitly states that these transfers will not be considered new public service entries, thus circumventing the mandatory public competitive examination requirement. This creates a privileged pathway for Copaco employees, allowing them to retain their current rights, obligations, seniority, and contributions.

Despite the significant opposition and concerns about its legality and potential for political patronage, the risk of the bill's approval remains high. It was previously on the agenda but failed to be debated due to a lack of quorum, indicating ongoing political maneuvering around the legislation. The "free rein" or "canilla libre" nature of the proposed transfers continues to be a major point of contention.