Congresswoman Rocío Vallejo, from the Patria Querida (PPQ) party, denounced an alleged scheme within the Attorney General's Office (PGR) that, according to her, drastically reduces the amounts recovered by the state in legal actions against private companies, while authorizing high payments in legal fees.
Vallejo alleges that the mechanism would operate in at least five stages. First, the PGR would identify cases with high economic value, such as lawsuits to enforce insurance policies or claim multimillion-dollar compensation — in the cited cases, the initial amounts exceeded G. 4.5 billion. Then, the cases would be reassigned to other prosecutors through internal resolutions, under the justification of better work organization.
Once the responsible parties were changed, negotiations would begin with the sued companies to reach court settlements. According to Vallejo, the sums finally accepted represent only a fraction of what the state originally claimed: in one of the examples presented, a debt of more than G. 4.5 billion was settled for G. 720 million.
While the amount recovered by the state decreases, the fees for intervening lawyers would remain high. In the case analyzed, the fees reportedly reached around G. 240 million, equivalent to approximately one-third of the money actually collected. Vallejo maintains that one of the companies involved had offered to pay a higher amount than what was ultimately accepted by the Attorney General's Office.
The congresswoman called for an investigation to determine whether the settlements responded to criteria of convenience for the state or whether there was a scheme designed to benefit private interests. She stated that the case could involve senior officials and advisors of the PGR, who would have evaluated the agreements through opinions and administrative acts, and that the facts could constitute crimes such as breach of trust and other offenses against public assets.
Vallejo also questioned the interim leadership of the PGR, which has remained without a permanent head for more than eight months. Former Attorney General Marco Aurelio González Maldonado, currently a member of the board of the Central Bank of Paraguay, left Rubén Elidio Gaona as interim head, who continues to lead the institution. The congresswoman announced the submission of a bill to ensure the position is filled permanently in accordance with legal mechanisms.
The PGR issued a statement defending the payment of legal fees, citing compliance with Articles 13 and 17 of Law 6837/2021, which establish the distribution of fees as institutional income. However, the institution did not provide details on the amounts or their distribution, and critics point out that Article 21 of the same law requires that any settlement must justify convenience to the state and remain within applicable legal limits.
This report matters beyond Paraguay as it highlights institutional and governance challenges that may affect trust in the legal system and legal certainty for foreign investors and international partners, underscoring the importance of transparency and accountability in public administration.