Weekly briefing - Jun 21, 2026 - Jun 28, 2026
Paraguay: degree scandal, debt, and drugs in focus
Pytagua Weekly: politics, economy, and security with context and sources.
A week marked by three fronts: the fake degree scandal at the MEC reopened the debate on institutional credibility, the pressure of public debt and the IPS exposed fiscal limits, and the government confronted the UN with counter-narcotics results.
Politics: crisis of confidence and Colorado realignment
The MEC removed the leadership of Universities after an audit detected more than 500 irregular users in the RUES and 145 fake degrees, in a case linked to former deputy Arévalo. In party politics, Cartes is strategizing for the October municipal elections and Senator Carlos Núñez returns to Honor Colorado after six months.
- Fake degree scandal exposes crisis of trust in Paraguay's higher education systemABC Color, El Nacional
- Cartes and Colorado governors define strategy to win October municipal electionsLa Nacion, Hoy
- Senator Carlos Núñez returns to the Honor Colorado movement after six monthsABC Color, Hoy, Ultima Hora
- Magalí Franco Elected as Interim Mayor of Lambaré After Arévalo Clan's DefeatABC Color
Energy, debt, and tax oversight
ANDE rejected a preferential tariff of US$30/MWh for Atome, which plans to invest US$665 million. Public debt interest jumped from US$187 million to US$1 billion in a decade, squeezing fiscal space. The DNIT began overseeing companies that retain profits in reserves to defer the IDU.
- ANDE rejects Atome's request for preferential energy tariff in ParaguayUltima Hora, El Nacional, ABC Color
- Paraguayan public debt interest costs soar 457%, squeezing spending room for health and infrastructureUltima Hora
- DNIT cracks down on Paraguayan companies that retained profits in reserves to avoid tax paymentEl Nacional
- Former minister criticizes bonus issuance to settle IPS debt in ParaguayUltima Hora
Billion-dollar deficit and works on the Costanera
The infrastructure deficit exceeds US$35 billion and pavements are already showing deformations. On the Costanera Norte, the dismantling of seven high-voltage towers must be completed by July 24. Alto Paraguay fears being merely a spectator of the Bioceanic Corridor due to a lack of roads, water, and energy.
- Dismantling of high-voltage towers on Asunción's North Waterfront enters final stageABC Color
- Alto Paraguay risks being merely a spectator of the Bioceanic Corridor due to lack of infrastructureABC Color
- Paraguay has an infrastructure deficit exceeding $35 billion, and road surfaces are already showing signs of deterioration1000 Noticias
Drug trafficking: seizures, OAS, and the Marset case
The government claims to have ceased being a critical cocaine route to Europe and cites US$700 million in losses to crime, countering a UN report. Paraguay joined the Santiago Commitment against organized crime within the OAS. In the United States, trafficker Marset denounced extortion by federal agents for cryptocurrency passwords.
- Paraguay drug policy: SENAD results face UN warning and call for science-based approachHoy, Unicanal, Ultima Hora
- Paraguay joins Santiago Commitment against transnational crime at the OASLa Nacion, 1000 Noticias
- Drug trafficker Marset claims US federal agents tried to extort his cryptocurrency wallet passwordUltima Hora
- Prosecutor Cubilla leads inspection of jet carrying 261 kg of marijuana in ParaguayABC Color
Migration, border noise, and blockage at Informconf
The Paraguayan community in Ireland exceeds 500 people and formalized a support association. Migration tightened rules to prove income for permanent residence as of July 6. The case of a teacher who paid 150 times her debt and remains blocked at Informconf exposes judicial failures. Noise pollution from Presidente Franco bothers residents in Foz do Iguaçu.
- Paraguayan community in Ireland grows and creates association to support migrantsLa Nacion
- Paraguay Establishes New Rules for Proving Income for Permanent ResidencyABC Color
- Paraguay: Teacher pays off debt 150 times over, but remains blacklisted at InformconfUltima Hora
- Noise pollution from the Paraguayan side disturbs border residents on the Brazilian side as wellABC Color
IPS without medicines and degree proposal
Patients with rare diseases have been without medication for eight months due to a lack of budget certificates. In the Senate, Juan Afara proposed issuing US$304 million in bonds for direct procurement of supplies, amid the IPS supply crisis.
We will follow the developments of the fake degree case, the pressure on the IPS, and the operational results of the fight against drug trafficking.