# Municipal corruption investigations in Paraguay

> Live situation record from CLSTR: https://clstr.news/situations/municipal-corruption-investigations-in-paraguay
> Updated: 2026-09-13T13:37:04.000Z. Sources: 16. Developments: 2.

Paraguayan prosecutors have initiated several legal actions against municipal officials and private entities regarding allegations of corruption, embezzlement, and misappropriation of public resources.

In Asunción, an investigation dubbed the ‘Asphalt Mafia’ led to formal charges against municipal employees and a private firm. Prosecutors allege that public resources, including asphalt, heavy machinery, and personnel, were used to pave private property belonging to Condor S.A.C.I. The estimated loss to the municipal treasury is approximately G. 100,000,000.

In other regions, legal proceedings have expanded to include different types of municipal fraud. In Valenzuela, a request for an oral trial was made against Mayor Mirtha Fernández concerning alleged breach of trust and false documentation related to unexecuted road improvement contracts.

The oral trial for former Ciudad del Este Mayor Miguel Prieto has officially commenced. Prosecutor Verónica Valdez presented initial arguments alleging a rigged bidding process for COVID-19 relief food kits. The prosecution claims that technical requirements and financial capacity checks were intentionally weakened to direct a tender worth G. 2,949,650,000 toward the firm Tía Chela to bypass competition. While the total tender was significant, the company reportedly only delivered kits worth G. 819,613,840, resulting in a purported financial loss of G. 2,130,036,160 for the Municipality of Ciudad del Este.

## Timeline

### 2026-09-13: Miguel Prieto faces oral trial over Ciudad del Este food kit bidding

The oral trial of former Ciudad del Este Mayor Miguel Prieto has begun, involving allegations of a rigged bidding process for Covid-19 food kits that caused significant municipal financial losses.

5 sources. https://clstr.news/cluster/paraguayan-officials-face-corruption-charges-in-separate-municipal-cases

### 2026-08-27: Asunción officials charged in municipal asphalt misappropriation case

Paraguayan prosecutors have charged several Asunción municipal officials and a shell company for allegedly using public asphalt and machinery to pave private property, causing G. 100 million in damages.

13 sources. https://clstr.news/cluster/asuncin-officials-charged-in-municipal-asphalt-misappropriation-case

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Cite as: Municipal corruption investigations in Paraguay. CLSTR, https://clstr.news/situations/municipal-corruption-investigations-in-paraguay