ISTANBUL
The US Treasury Department announced Thursday it imposed sanctions on Paraguay’s former President Horacio Manuel Cartes Jara and current Vice President Hugo Adalberto Velazquez Moreno for corruption.
It also imposed sanctions on four entities – Tabacos USA Inc., Bebidas USA Inc., Dominicana Acquisition S.A., and Frigorifico Chajha S.A.E. – for being owned or controlled by Cartes.
The decision follows visa restrictions imposed on Cartes and Velazquez last year amid Washington’s whole-of-government approach to fight corruption and illicit finance.
“Treasury is committed to addressing systemic corruption around the world, even in its most entrenched forms and at the highest levels of public office,” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said in a statement.
“Today’s action exposes the endemic corruption undermining Paraguayan democratic institutions and highlights the pressing need for the Government of Paraguay to act in the best interest of its citizens, not line the pockets of its political elites,” he added.
The Treasury alleged that Cartes engaged in corruption before, during, and after his term in the office, which involved “providing financial investments and incentives to induce [his] political party,” “making cash payments to officials” and “bribing legislators.”
The department argued that Velazquez engaged in “corrupt practices to interfere with legal processes” that included “bribing and threatening those who could expose his criminal activity.”
“Cartes and Velazquez both have ties to members of Hizballah, [which] has regularly held private events in Paraguay where politicians make agreements for favors, sell state contracts, and discuss law enforcement efforts in exchange for bribes,” it said in a statement.
