PLRA faces G. 19 billion in lawsuits, treasurer says

The Liberal Radical Authentic Party (PLRA), Paraguay's main opposition party, is grappling with a severe financial and administrative crisis, burdened by over 260 lawsuits amounting to roughly G. 19 billion. Party treasurer Agustín Saguier explained that these financial woes stem from years of poor management and a lack of oversight in the issuance of bonds.

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I have 260 and so many lawsuits, we have a very important account that is also being sued, and the challenge is great, because it coincides with the elections, and this is a political party, it has to have resources to be able to face the elections.

Saguier indicated that the majority of these issues trace back to the tenure of former president Efraín Alegre. He detailed how bonds issued without sufficient control or traceability between 2018 and 2021 have ballooned into a "snowball" of debt due to accumulated interest and penalties.

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They are consequences of poor financial and administrative management. The party historically issued bonds, the issuances were made without much control, without much traceability, without much responsibility, and that has led us to have lawsuits for bonds corresponding to the year 2018, bonds corresponding to the year 2021.

The party's recent board meeting, held under a veil of secrecy, addressed the critical financial situation. Saguier emphasized the need for a strategic and discreet approach in negotiations with creditors and bondholders, especially with elections on the horizon. The party is actively working to identify all outstanding debts, the specific bondholders, and those responsible for the original bond issuances. Once this traceability is established, a report will be published to inform party members and allow for political accountability.

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The sum kept growing and turning into a snowball due to interest, fees, and penalties, which grew and today are on the order of approximately G. 19 billion.