Mayor intervenes in Asunción's Public Works Department following allegations of asphalt being used on private properties

The mayor of Asunción intervened in the Directorate of Public Works and removed its director following allegations that public funds were being used for work on private properties, a case that sparked protests from municipal workers and a criminal complaint for an alleged "asphalt mafia."

Mayor intervenes in Asunción's Public Works Department following allegations of asphalt being used on private properties
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The Asunción Municipal Directorate of Road Maintenance (Vialidad) was officially placed under intervention by Mayor Luis Bello, following allegations that its resources were being used for private projects. The department's director, Nicolás Duarte, has been removed from his position for the duration of the intervention process, which is expected to take approximately 30 days.

The announcement of the intervention came after employees of the directorate themselves, in a show of force, occupied the premises and halted pothole repair services. They were protesting allegations made by Director Duarte, who had allegedly tried to blame them for a supposed "parallel collection scheme," while the employees themselves claim they received "orders from above" to perform work on private properties outside of business hours.

The mayor's legal advisor, Jorge Sabaté, stated that the appointment of an intervener, whose identity will be determined this Thursday, would resolve the situation. "I understand that once this resolution is issued, the situation at Vialidad will be unlocked," declared Sabaté, adding that pothole repair services should be normalized starting tomorrow.

The allegations that sparked the crisis were formally presented by councilman Pablo Callizo of the Patria Querida Party (PPQ). He announced he will file a criminal complaint against the Municipality for a case he classifies as "asphalt mafia." The action is based on two specific cases where, according to his estimates, 140 tons of asphalt, machinery, vehicles, and municipal employees were used on private land, causing a preliminary estimated loss of about G. 500 million.

Mayor Bello estimates that in approximately 15 days there will be news regarding the investigation. The intervention seeks to transparently investigate the accusations and resume a service considered essential, given the chaotic state of the Paraguayan capital's streets.

Update - Jul 17, 2026, 8:45 AM

Councilman Pablo Callizo announced that he will file a criminal complaint this Friday against the Municipality of Asunción over what he called the "asphalt mafia" case. The action is based on two specific incidents where 140 tons of asphalt, machinery, municipal vehicles, and employees were allegedly used on private properties, with a preliminary estimated loss to public funds of G. 500 million.

Mayor Luis Bello stated that the intervention in the Directorate of Roadways should last about 15 days, revising his initial estimate of 30 days. In addition to director Nicolás Duarte, two other officials have been temporarily removed from their posts. Bello appointed a legal advisor from the Municipal Attorney's Office as the intervener to investigate the allegations.

During an interview, the mayor said he had always considered Duarte's management to be "honest and technical," but he emphasized that he will await the investigation's conclusions before making definitive decisions. He reiterated that no municipal procedure allows for the use of public resources on private projects.

Protests by employees continue, with workers stating that the Asphalt Plant has no asphalt in stock, preventing the immediate resumption of road repair services in the capital. The company Condor SACI, mentioned in the allegations for allegedly receiving irregular paving work, reported that it hired private services and is preparing an official statement on the case.

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Updated: Jul 17, 2026, 8:12 AM