US embassy cable - 05ASUNCION870

UNCLAS SECTION 01 OF 04 ASUNCION 000870 
 
SIPDIS 
 
STATE FOR INL ABBY SMITH 
STATE FOR WHA/BSC AND EB/IFD/OIA 
NSC FOR KIM BREIER AND SUE CRONIN 
SOUTHCOM FOR POLAD DAN JOHNSON 
 
E.O. 12958: N/A 
TAGS: SNAR, PA, KCRM 
SUBJECT: PARAGUAY'S 2005 SECOND QUARTER INL REPORT 
 
1. (U)  Summary: 
 
- Quarterly activities 
- Program discussion 
- Quarterly SENAD statistics 
 
Quarterly Activities- Counternarcotics 
-------------------------------------- 
 
2.  On April 14, two agents from SENAD's Operations Unit 
arrested three police officers and two employees of the 
Public Ministry's Judicial Investigative Center (CIJ) on 
charges of extortion.  The gang allegedly kidnapped the 
two-year old son of a woman whom they blackmailed for USD 
1000.  They also threatened to bring drug trafficking charges 
against the woman who admitted to the DOA agents she had 
traveled to Spain transporting cocaine.  The employees of the 
CIJ had identified themselves as DOA agents in telephone 
calls to the woman demanding the ransom.  The case broke 
however, when the woman lodged a complaint with the Attorney 
General's office, implicating police and CIJ officials 
leading to their arrest. 
 
3.  According to press reporting, on April 17 Brazilian 
authorities conducting a counterdrug operation shot down a 
twin-engine Piper Aztec as the pilot attempted to take off 
and escape after refueling in Brazilian territory.  The pilot 
was killed and the co-pilot wounded.  The men were Brazilian 
nationals and reportedly have prior convictions for 
trafficking-related offenses.  The authorities estimate they 
were transporting 500 kg of marijuana and 30 kg of cocaine, 
which they dropped from the plane over Uruguayan territory. 
Authorities recovered over 100 kg of the marijuana, which 
they believe to be of Paraguayan origin.  Flight records show 
the plane flew through Paraguay and Colombia. 
 
4.  On April 28, an INL-funded SENAD canine unit detected 32 
kilograms of marijuana during a routine check of a Sao 
Paulo-bound bus near the Friendship Bridge connecting Ciudad 
del Este to Foz do Iguacu, Brazil.  The bus originated from 
Asuncion.  Kilo, one of SENAD's drug dogs, discovered the 
marijuana in two backpacks and one large bag belonging to two 
young men from Caaguazu, Paraguay.  SENAD agents arrested the 
individuals and placed them in a local jail until their trail 
date was set. 
 
5.  On May 9, SENAD agents captured 50-year old Brazilian 
pilot Joao Freitas de Carvalho in Pedro Juan Caballero. 
Freitas is wanted in Brazil for trafficking cocaine for 
Fernandinho Biera Mar, Claudaire Lopes de Faria, and Ivan 
Mendes Mesquita.  SENAD believes Freitas was involved in a 
plot to help Mendes Mesquita escape from a detention center 
prior to his extradition to the United States.  There are no 
charges pending against Freitas in Paraguay.  GOP officials 
are processing Brazil's request for Freitas extradition. 
 
6.  A SENAD drug dog, Bonita, detected 995 grams of cocaine 
concealed in a shipment of backpacks from Ciudad del Este 
enroute to Cameroon.  The drugs were concealed inside metal 
backpack frames, each backpack containing around 90 grams of 
cocaine.  SENAD along with two prosecutors thoroughly 
searched the shipments and took photographs of the backpacks, 
 showing improved investigation abilities and aggressiveness. 
 In mid-May, authorities arrested one individual in Ciudad 
del Este suspected of mailing the package and SENAD continues 
to search for another suspect.  On May 19, SENAD agents in 
CDE seized five kilograms of cocaine and arrested a Nigerian 
national also involved in this case. 
 
7.  According to local press, Brazil deployed Army, Air 
Force, and Navy units to its border with Paraguay to control 
strategic points through which contraband, arms, and drugs 
could enter.  The military operation named "Jaura II" covered 
the Brazilian states of Mato Grosso, Mato Grosso do Sul, and 
the northeastern region of Parana.  There was little public 
Paraguayan reaction to these exercises. 
 
8.  On June 14, SENAD drug dog, Bonita, detected 31 kilograms 
of marijuana hidden in a piece of luggage during a routine 
check of a bus traveling to Ciudad del Este.  The drugs were 
concealed in 50 paper packets wrapped around a porcelain tea 
set. 
 
9.  On June 22, the Cassation Tribunal of the Supreme Court 
rejected Carlos Ivan Mendes Mesquita's appeal, clearing the 
way for his extradition to the United States.  Mendes 
Mesquita's turnover to US authorities took place on June 27, 
after several final judicial and administrative steps were 
completed.  The GOP took extraordinary security precautions 
against possible bribes or violence to free Mendes Mesquita. 
Mendes Mesquita is the first major trafficker turned over to 
the U.S. by Paraguay and his extradition is a dramatic step 
against the FARC-linked trafficking organization. 
 
Trafficking in Persons (TIP) 
---------------------------- 
 
10.  Paraguay's Ambassador to Argentina Orlando Fiorotto, 
Argentina's Ambassador to Paraguay Rafael Edgardo Roma, and 
Paraguay's Director of the Repatriation Office, Nicasia 
Maldonado met in Asuncion to discuss proceedings in the case 
of 29 Paraguayan females--of which two are minors--who had 
been tricked into prostitution and were discovered in early 
May in Cordoba, Argentina during a roundup of brothels. 
Maldonado later traveled to Cordoba with the Minister of 
Women, Maria Jose Argana Mateu, to prepare for the return of 
these women.  Ambassador Fiorotto stressed to the press the 
importance that Paraguay attaches to the investigation of 
this case and the prosecution of those involved. 
 
11.  In April, an Appeals Court overturned a conviction of 
two defendants from Villarica in a TIP case on grounds 
Spanish authorities have jurisdiction since the crime was 
concluded there.  The case has gone to the Supreme Court for 
review.  Ministry of Women representatives have stressed the 
importance of reinstating the conviction.  We are raising the 
case as well with the Supreme Court. 
 
12.  On June 8, the Ministry of Women inaugurated a new 
center for the rehabilitation of victims of trafficking in 
persons (TIP). The Center is funded in part through the 
memorandum of understanding, signed last September, which 
granted USD 155,000 to assist the GOP in combating TIP. The 
center will be staffed with psychologists, sociologists, and 
attorneys to assist victims who have been recently 
repatriated to Paraguay. The Ministry will also sponsor 
training seminars for local authorities to raise awareness 
about TIP issues and how the Center can assist victims, 
including the filing of criminal charges. The Minister of 
Women, Maria Jose Argana Mateu, and the Ambassador both spoke 
at the event highlighting the importance of combating 
Trafficking in Persons in Paraguay. The Center opened in late 
June. 
 
Intellectual Property Rights (IPR) 
---------------------------------- 
 
13.  The Specialized Technical Unit (UTE) of the Ministry of 
Industry and Commerce conducted 12 raids over the last 
quarter, six were conducted in Ciudad del Este, three in the 
country's interior, and three in Asuncion respectively.  UTE 
seized goods during each operation, including thousands of 
falsified compact discs, DVDs, cell phone batteries, cell 
phone covers, and ink and toner cartridges.  The operations 
were not limited to these specific products, as authorities 
also seized falsified products ranging from Coca-Cola bottles 
to sporting equipment.  The largest raid took place on May 
27-28 in Asuncion, where UTE officials seized over 147,000 
pirated compact discs from 16 businesses, the attorney 
general's office is investigating three individuals arrested 
in the operation. 
 
 
14.  Program Discussion: 
 
   a.  Demand Reduction 
 
This quarter the SENAD demand reduction team conducted 525 
information sessions reaching over 16,000 students at 80 
educational institutions in the Central Department (where 
Asuncion is located). In addition, the team conducted 14 
formal training sessions to 460 primary school teachers.  On 
June 23, SENAD commemorated the "International Battle Against 
the Use and Trafficking of Illicit Drugs Day" with a ceremony 
attended by Vice-President Castiglioni, SENAD Minister 
Ibarra, and Ambassador Keane. 
 
    b.  Narcotics Detection Canine Program 
 
SENAD's canine unit assisted in the seizure of marijuana and 
cocaine in three different operations.  The dogs discovered 
over 63 kilograms of marijuana and 6 kilograms of cocaine. 
    c.  Eradication Operations 
 
This quarter SENAD focused its eradication operations in the 
Departments of Amambay and Canindeyu.  In two separate 
operations, SENAD agents destroyed 219 hectares (657,000 
kilos) of marijuana and seized an additional 1,270 kilograms 
of cut marijuana.  Authorities also destroyed 57 workers' 
campsites and equipment. 
 
    d.  Law Enforcement 
 
        1.  Counter Narcotics 
 
In addition to the above operations, on April 1, Paraguay 
successfully extradited Brazilian traffickers Odacir Antonio 
Dametto, Mario Alberto Parra Espindola, and Carlos Alberto da 
Silva Duro, who are wanted in Brazil on drug charges. 
 
        2.  Money Laundering and Financial Crime 
 
Prosecutors filed two new charges against Hatem Barakat, a 
brother of money launderer and suspected terrorist financier 
Assad Barakat, who in 2003 was convicted of tax evasion and 
sentenced to six years in prison.  The new charges against 
Hatem involve the falsification of his children's birthplace 
for purposes of obtaining Paraguayan citizenship. 
Ironically, these seemingly less serious charges carry a 
greater maximum penalty than the tax evasion charges, 
subjecting Hatem to the possibility of eight years in prison 
if convicted. 
 
 
15.  Training 
 
This quarter INL funded an Oracle software training course 
for analysts working for the Anti-Money Laundering 
Secretariat (SEPRELAD). 
 
SIPDIS 
 
 
16.  Miscellaneous Issues 
 
               Quarterly SENAD statistics 
 
                    1st        2nd       3rd       4th 
 
 
Cocaine          105.9 kg      12.39 kg 
Seized (kg) 
 
Marijuana 
Seized (kg)      25,601 kg     26,737 kg 
 
Marijuana 
Crops           761 hectares   219 hectares 
Destroyed 
 
Arrests           17             45 
(total) 
 
- Cocaine         10             11 
 
 
- Marijuana 
(cultivation)      0              1 
 
 
- Marijuana        6              32 
 
 
- Counterfeit 
  Currency         0              0 
 
 
- Int'l Trafficking 
  Firearms         1              0 
 
 
- Trafficking 
  Narcotics        0              1 
 
 
- Illegal Entry    0              0 
 
 
- Money Laundering  0              0 
 
 
- Result of 
 Investigation      0              0 
KEANE