Six municipalities blocked for failing to submit financial reports to Paraguay’s Finance Ministry

Six Paraguayan municipalities have been blocked from receiving state transfers after their mayors failed to submit required financial accounts and reports to the Ministry of Economy and Finance.

The ministry distributed G. 2.33 trillion in royalties and other compensation through the end of August, according to a report from the Directorate General of Departments and Municipalities. The 17 departmental governments received G. 1.599295 trillion, while municipalities received G. 739.961 billion.

The funds come from royalties, value-added tax, gaming taxes and other state compensation. The municipalities that received no transfer were Asunción, led by Luis Bello; Paso Barreto, led by Milciades Arce; Juan de Mena, led by Fabio Díaz; Valenzuela, led by Mirtha Fernández; Villa Hayes, led by Sol Núñez; and Fuerte Olimpo, led by Moisés Recalde.

To access the funds, mayors and governors must submit accounts and four-month reports to the Finance Ministry and the Office of the Comptroller General. They must also be up to date with required contributions by municipal employees to the Municipal Staff Retirement and Pension Fund. The National Treasury must suspend transfers when these legal requirements are not met, and can resume them only after the filings and reports are regularized.