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Senator Denounces $157 Million Overpricing in Public Works Projects, Demands Minister's Explanation
🇵🇾 Paraguay /Elections & Politics

Senator Denounces $157 Million Overpricing in Public Works Projects, Demands Minister's Explanation

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Senator Ever Villalba has denounced alleged overpricing totaling $157 million in 12 public works projects by Paraguay's Ministry of Public Works and Communications (MOPC).
  • Villalba claims the ministry disqualified cheaper bids to favor proposals with over 80% cost overruns, potentially implicating Minister Claudia Centurión.
  • The senator warned of referral to the Public Prosecutor's Office if satisfactory explanations are not provided, suggesting bid documents may have been prepared for specific companies.

Senator Ever Villalba has raised serious allegations against Paraguay's Ministry of Public Works and Communications (MOPC), denouncing a potential financial loss of $157 million due to overpricing in 12 public works contracts. Villalba claims that the ministry systematically disqualified the most economical bids, opting instead for proposals with cost overruns exceeding 80%.

Our team has conducted an investigation and we have detected that in several tenders, awards were made for amounts several times higher than the reference price, which is an indication of overpricing.

— Ever VillalbaExplaining the findings of his investigation into public works contracts.

Villalba directly challenged Minister Claudia Centurión, demanding explanations for these alleged discrepancies. He indicated that if the ministry fails to provide a convincing response, the case will be escalated to the Public Prosecutor's Office. "Our team has conducted an investigation and we have detected that in several tenders, awards were made for amounts several times higher than the reference price, which is an indication of overpricing," Villalba stated.

If there is no additional service to what they established, we are facing a possibility of breach of trust.

— Ever VillalbaCommenting on the potential legal implications if no extra value was received for the higher costs.

The senator further suggested that the tender documents might have been manipulated to favor specific companies. He pointed out clauses that prevented awarding multiple lots to a single company, which he believes led to the rejection of cheaper offers and the selection of more expensive ones. "In the tender documents, there are elements that indicate it was prepared for a specific company, which would be a friendly company," he added, raising concerns about potential favoritism and breaches of trust.

In the tender documents, there are elements that indicate it was prepared for a specific company, which would be a friendly company.

— Ever VillalbaSuggesting that tender processes may have been rigged to favor certain businesses.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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