Villarrica mayor denounces financial collapse at municipality

Villarrica’s municipal government has been left without readily available funds, while nearly G. 3 billion remains blocked by Paraguay’s Ministry of Economy and Finance because of missing supporting documents, Mayor Ovidio Cuevas said.

Cuevas took office on July 3 after Magín Benítez resigned to seek re-election. He said the municipality executed G. 21.854 billion between January 2 and July 3. Even during the first three days of July, the municipality collected more than G. 726 million in ordinary revenue, yet the municipal treasury was almost empty when the administration changed hands.

The new administration is trying to determine and document where the money spent under the previous government went. Cuevas identified financial reports as one of the main obstacles, saying the municipality does not have all the receipts, invoices and other documents needed to justify certain transactions.

The missing paperwork has led the Economy and Finance Ministry to withhold nearly G. 3 billion in Fonae and royalty transfers. Cuevas said those funds represent an important source of financing for the municipality’s obligations, and their absence has already affected employees.

The municipality has paid June salaries, but some workers are still waiting for their July and August pay. Teachers at the Municipal School of Arts and Dance have also been affected because their wages depend on municipal funds. The administration is relying largely on daily revenue to keep up with payments.