Paraguay: The political struggle between the Executive and Legislative

Last week, the president of Paraguay, Fernando Lugo, vetoed two expansion budget requests from the Superior Court of Electoral Justice (TSJE), worth US$ 50 million.

Lugo’s decision was based on a recommendation from the Minister of Finances, who rejected the millionaire budget boost for the Electoral Court.

The decision was not well accepted by some sectors, such as the Colorado Party, who led Paraguay for five decades. The rejection of the Paraguayan Executive regarding the budget expansion request may cause reprisals from the TSJE towards the government in Congress. Although Fernando Lugo claims that such action would be “unwise”, the climate in Parliament is not good for President.

The strategy of Paraguay’s president to avoid further problems in Congress – the government is a minority in the legislative branch since the beginning of his government – is trying to convince the population that his decision is in the country’s best interests, despite contrary opinions from important congressmen and senators.

Paraguay: Senate and the Judiciary in institutional crisis

A conflict between the Judiciary and the Senate lead the Paraguayan Supreme Court to report to the OAS (Organization of American States) a violation of the constitutional order in the country.

The court’s president, Victor Nunez, filed a complaint to President Fernando Lugo, so that he would communicate the alleged violation to the international body with urgency.

The controversy began after the Senate declared vacant the positions of seven of the nine ministers of the Court. Judges refused to leave their office and accused the Senate of exceeding its authority.

For Núñez, the decision of the Senate ”has no legal validity” and sets up an institutional situation that “poses a serious threat to democratic legality.”

Senators base their decision on an article of the Constitution that states that judges must be confirmed for two terms to become permanent or irreplaceable, but members of the Court argue that judges are not simply judges but rather Ministers or Justices, and therefore the rule does not apply to them.

Paraguay: Country wants to sell more electricity to Brazil

Paraguay reported that it intends to provide electrical energy from one of its hydroelectric plants to Brazil, a country that usually faces potential shortages during the winter months. Paraguay also waits on a pending authorization from Argentina to implement a similar operation with Uruguay. Paraguay and Brazil are the owners of the Itaipu hydroelectric plant, one of the most powerful in the planet.

The Deputy Paraguayan Minister of Mines and Energy Mercedes Canese said that Paraguay decided to offer energy from the Acaray hydroelectric power to Brazil due to the interest of various agents in Brazil to acquire it.

The dam is located in the Acaray river in the Southeast of the country – near the border with Brazil – and has an installed capacity of 210 megawatts (MW).

Paraguay has offered Acaray energy to Uruguay, but the operation remained stagnant waiting for negotiations with Argentina over the price they charge for being a transit country.

According to Paraguayan authorities, Chile and Bolivia are also potential buyers of the country’s electricity.

Paraguay: Exports decreased by 5.4% in first quarter

Paraguayan exports registered a decrease of 5.4% during the first quarter of 2012 compared to the same period last year, due to the decrease in its agricultural activity, according to data by the Central Bank of Paraguay (BCP).

According to the BCP, the value of foreign sales in January and March closed at US$ 1.08 billion compared to the nearly US$ 1.15 billion in the first three months of 2011, the report pointed.

Among the exports, soybeans, which figure as one of the country’s most important revenue sources, shrunk 32.6%, from US$ 286.2 million to US$ 192.8 million.

Meat, which is the second most important export item, summed US$ 69.5 million in sales between January and March 2012 compared to US$ 86, 6 million for the same period last year.

Two outbreaks of FMD in September 2011 and January this year, caused a significant decrease in beef production, while a prolonged drought between December and January affected the soybeans exports.

Paraguay: Lugo wants to battle local mafia

Paraguayan President, Fernando Lugo, believes that the Paraguayan mafia is trying to destabilize his government. Lugo has a fierce battle ahead of him to defeat a well-structured corruption and crime environment in the country.

A series of investigations is undergoing in the main institutions of the government. Lugo will encounter great difficulties in this area, since corruption is well settled in Paraguay.

Paraguay – January 2008