The Caja de Jubilaciones y Pensiones del Personal Municipal (CJPPM), known locally as the Caja Municipal, is facing a liquidity crisis affecting 2,503 retirees. In August, the institution had released only the benefits corresponding to June, continuing the installment-based payment of benefits that has been in place since 2023.
Municipalities’ accumulated debt to the institution reached G. 51.933 million in July. The Municipality of Asunción had the largest debt, at G. 35.885 million, followed by Fernando de la Mora, with G. 6.309 million; Hernandarias, with G. 1.469 million; Ciudad del Este, with G. 931 million; and San Lorenzo, with G. 863 million.
The administrative council attributes the shortage of funds mainly to the irregular transfer of municipal contributions. The report also attributed the crisis to poor administration, a lack of transfers and limited state action. It reported that retirees were struggling to survive while payments remained delayed and were made in installments.
Venancio Díaz Escobar has headed the Caja since Bernabé Peralta’s resignation in January 2024. According to court proceedings and the report, both men, along with other council members, are facing proceedings over alleged breach of trust linked to an alleged multimillion-guaraní embezzlement. Díaz Escobar is also under investigation over allegedly improper collection of fees. The accusations have not yet resulted in a final court ruling.
In addition to Díaz Escobar, the council includes Stela Galeano de Orué, representing retirees; Gustavo Gómez and Juan Amarilla, representing active employees; and Viviana Brioschi Capurro and Justo Gamarra, representing municipal institutions. The council’s monthly compensation totals as much as G. 233,344,480. According to the report, increases in per diems and bonuses were approved at the beginning of 2026 despite the benefit delays.
Elections scheduled for October 2024 to renew the council were suspended after court actions. The report said the current leadership and its group used legal measures to remain in office, but that characterization depends on the court records. The Caja also tried to raise funds through the auction of furniture and other assets, but the procedure ended up in court.
In 2023, Santiago Peña’s government created the Superintendencia de Jubilaciones y Pensiones. The source does not establish the scope of its supervisory powers. According to the report, almost three years later, no concrete measures had been announced to restore the Caja Municipal.
The crisis worsened after a fire was deliberately set on May 14, 2024, destroying administrative documents. Ramón Fernando Kiessel Bejarano admitted during his trial that he started the fire on orders from superiors and received a two-year sentence with enforcement suspended. Fabiana Liduvina Benítez, Rossana Ramírez and Fulvia Fernández are also facing proceedings for alleged involvement. The investigation has not yet fully clarified the chain of responsibility.