IPS spends more to resume surgical center construction in Asunción after fraud

Paraguay's Social Security Institute (IPS) is spending more to resume construction of surgical centers at the Central Hospital in Asunción after fraud, million-dollar contract amendments, and three-year delays in the contract with Neighpart S.A., while former managers are investigated for losses to the public treasury.

IPS spends more to resume surgical center construction in Asunción after fraud

The Social Security Institute (IPS), responsible for social security and public health in Paraguay, is facing a crisis in completing the surgical block at the Central Hospital in Asunción. A 2022 technical report by the consultancy Gavilán & Asociados already proposed a solution to reinforce the structure of the seventh and eighth floors, where 11 modular surgical centers were to be installed, at a cost of 642 million guaranis. However, the proposal was ignored by the administrations of former presidents Vicente Bataglia and Jorge Brítez, who opted for million-dollar amendments to the original contract.

The initial contract, signed in 2020 with the company Neighpart S.A. during the administration of Andrés Gubetich, stipulated the construction of the surgical centers for 53 billion guaranis. With four amendments, the value rose to 61.186 billion, without the work progressing. An internal IPS audit revealed that, even after advance payments of 15.9 billion guaranis, the first delivery of equipment only occurred in August 2023—three years late and outside contractual deadlines. The supplies, abandoned in the hospital parking lot, included solar panels, generators, and oxygen tanks, but no surgical modules.

In 2024, the management of Jorge Brítez suspended the execution of the contract and proposed relocating the surgical centers to another space in the hospital, a project approved by the Ministry of Public Health. However, the work stalled again, and the current IPS administration, led by Isaías Fretes, cited new problems in the new area. Meanwhile, the Public Prosecutor's Office has charged Bataglia and Brítez for alleged damage of 61.186 billion guaranis to the public treasury. So far, Neighpart has received 35.658 billion but has delivered only part of the air conditioning equipment.

To try to break the deadlock, the IPS launched a tender for 1.288 billion guaranis to reassess the entire infrastructure of the Central Hospital. The Director of Maintenance, Juan José Sánchez, admitted that the floors originally planned for the surgical centers may once again be considered suitable. The measure, however, is seen as redundant, since the 2022 report already offered a technical solution for half the cost.

The case also exposes failures in oversight. Security camera footage showed that Neighpart delivered the first supplies without authorization, leaving them exposed to the elements. The company did not present documentary justifications for the delays, and the internal audit warned of the risk of equipment deterioration. Despite the irregularities, the IPS continued to sign amendments and release million-dollar payments.

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Updated: Aug 17, 2026, 1:00 AM