Senator denounces "patrimonial damage to the State" after agreement approved by Peña at IPS

Senator Yolanda Paredes has launched a strong accusation against a system of extrajudicial agreements within public institutions, alleging it facilitates a mechanism for lawyers to receive substantial fees while diminishing debts owed to the state. The legislator specifically pointed to cases involving the Paraguayan Social Security Institute (IPS) and the Attorney General's Office.

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We are no longer talking about an extrajudicial resolution and a reduction; we are talking about patrimonial damage against the Paraguayan state.

Paredes described the situation as a "fraudulent reception of fees" within the Paraguayan state. She linked the case of former IPS legal director José "Jos'i" González Maldonado to extrajudicial agreements that allegedly resulted in millions in losses for public coffers. "We are no longer talking about an extrajudicial resolution and a reduction; we are talking about patrimonial damage against the Paraguayan state," the senator stated during a session in the Senate.

These declarations follow reports revealing that González Maldonado admitted to acting with the direct approval of President Santiago Peña to finalize an agreement with Consorcio Hotelero Sudamericano SA. Documents indicate a key presidential advisor reviewed the opinions to legally and politically shield the operation. Paredes highlighted a pattern, noting that at IPS, a debt exceeding 10 billion Paraguayan guaranis (excluding interest) was reduced to 7.6 billion guaranis through an agreement, allowing lawyer José González Maldonado to earn fees of 412.5 million guaranis.

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There is a scheme within the Paraguayan state of lawyers, in collusion with the Judiciary, to discount and make reductions that are reaching 80% and 90%.

The senator also cited a similar case involving lawyer Marco Aurelio González and the insurance company Tajy SA, where an initial debt of over 4.3 billion guaranis was reduced by approximately 90%. "There is a scheme within the Paraguayan state of lawyers, in collusion with the Judiciary, to discount and make reductions that are reaching 80% and 90%," Paredes denounced. She directed a message to the president of IPS, Isaías Fretes, urging him to stop these debt reductions and refinancings, emphasizing that these funds are crucial for essential services such as health, maternity, retirement, disability, and pensions. "We cannot continue making reductions within IPS because this is affecting the availability of money for health and retirement," she affirmed.

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We cannot continue making reductions within IPS because this is affecting the availability of money for health and retirement.