The ruling majority on the Asunción Municipal Board approved a G. 4.5 billion increase for supply contracts with the Directorate of Vialidad (the municipal road maintenance department), ignoring allegations of materials being diverted to private projects and criticism of overpricing. The decision was made during a session on Wednesday, following a tie that was broken by the double casting vote of the legislative body's president, Arturo Almirón.
Opposition councilors, such as Pablo Callizo (PPQ), reminded the board that a formal complaint was filed on June 24, with photos and videos allegedly showing municipal workers using public machinery and supplies to pave a private lot. Callizo questioned why the Director of Vialidad, Nicolás Duarte, did not attend to provide explanations, as had previously been approved by the Board.
Councilman Humberto Blasco (PLRA) warned of alleged overpricing in the contracts. He argued that the products are imported and that the exchange rate for the dollar has fallen by about 25%, but the municipality is maintaining the purchase price calculated at G. 7,500 per dollar, when the current rate is approximately G. 5,900. Blasco described the approval of the increase without a price adjustment as a "gift to the contractors" and "damage to municipal assets."
The expanded contracts primarily benefit the company Materiales Asfálticos SA, which will receive an additional G. 3.58 billion to supply asphalt cement and asphalt emulsion. Ortellado Toniolo SA will receive an increase of G. 225 million for the sale of cold asphalt mix. The approval comes amid criticism of the management of Director Duarte, who remains in his post despite the allegations and his familial relationship with the ruling-party councilman Nasser Esgaib.