ASUNCIÓN, PARAGUAY – Asunción City Hall has announced its readiness to fully cooperate with the city hall intervention audit, as directed by Mayor Óscar "Nenecho" Rodríguez. In an interview with GEN Channel, Benito Torres, Legal Advisor for Asunción City Hall, emphasized that once the intervention auditor is appointed and official procedures are completed, all necessary documents will be provided immediately.
"We have received instructions from Mayor 'Nenecho' to facilitate everything for the intervention auditor," Torres stated. "We are already preparing everything necessary for the auditor to begin their work as quickly as possible." Mayor Rodríguez is expected to designate three officials to directly collaborate with the auditor throughout the audit process.
The intervention procedure dictates that once the National Congress's decision is communicated to the Executive Branch, the Executive Branch will issue a decree regarding the auditor's appointment. Upon notification to the City Hall, the selected auditor will reside at City Hall headquarters to review administrative procedures and commence the audit.
Audit Focus: Controversy Over G8 and G9 Bond Usage and Financial Issues
Torres explained that this audit will primarily focus on the use of G8 and G9 bonds, based on a report from the Office of the Comptroller General of the Republic (Contraloría General de la República). The auditor will assume the mayor's duties during the audit period.
G8 and G9 bonds were issued by Asunción City Hall to fund specific public works projects. Suspicions regarding the use and transparency of these bonds led to an investigation by the Comptroller General, which became a key reason for the decision to intervene in City Hall. A thorough investigation is expected, particularly into whether these bonds were used for their original purpose and if there was any corruption or irregularities in the fund execution process.
Torres also stated that there is a difference of opinion with the Comptroller General regarding the use of a single account (Caja Única). The City Hall submitted a request for reconsideration on this matter and subsequently filed an administrative lawsuit. He defended the City Hall's stance, arguing that "there are precedents supporting the use of a single account, and there's even a directive from the Ministry of Finance itself from 2014." A single account consolidates various funding sources into one account, which can increase efficiency but may also make it difficult to clearly distinguish between the origin and destination of funds, potentially leading to transparency issues.
Wage Arrears Controversy and Municipal Financial Health
Torres admitted that there had been delays in paying municipal employees' wages but stressed that the situation is now being normalized. He pointed out that a decrease in tax revenue was one cause of the low collection, as taxpayers hesitated to pay taxes to the City Hall due to the Comptroller General's request for intervention.
"98% of employees have already received their salaries, and the remaining small group will be paid today," Torres said. He firmly denied claims that "the City Hall is bankrupt, stating that it's merely a temporary liquidity issue." He added that "the City of Asunción has sufficient resources to fulfill its obligations," emphasizing the soundness of the city's finances.
This intervention audit is expected to be a crucial opportunity to enhance the transparency and efficiency of Asunción City Hall's financial management and restore citizens' trust. The audit results are also anticipated to significantly impact Mayor Rodríguez's political standing.
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