Paraguay Launches Corruption Probe Against Ex-President Over $21M Offshore Accounts

A bombshell investigation has rocked Paraguay, targeting its former head of state. Authorities have launched a formal criminal probe into ex-President Mario Abdo Benítez and his wife, Silvana López Moreira, following the discovery of evidence suggesting they concealed more than $21 million in secretive offshore bank accounts located in the Seychelles.

Attorney General Emiliano Rolón confirmed the investigation in July 2025, signaling a major escalation in the case. The probe focuses on potential serious crimes: asset concealment, money laundering, and abuse of power for personal enrichment. Evidence gathered by Paraguay’s Secretariat for the Prevention of Money Laundering (SEPRELAD) revealed that two obscure companies – Star Capital Financial Services Limited and Exchange Contracts International Finance Limited – opened accounts in Seychelles banks during Abdo Benítez’s presidency (2018-2023) and immediately after he left office.

Mounting Evidence Points to Undeclared Wealth

Investigators uncovered that these Seychelles accounts received substantial international wire transfers, with single transactions ranging from $600,000 to $1.7 million. Crucially, Paraguay corruption probe documents show these accounts and the associated millions were never declared in Abdo Benítez’s mandatory presidential asset disclosures. Paraguayan law strictly requires presidents to fully declare all assets, making this omission a central pillar of the investigation.

Adding to the suspicions, authorities are scrutinizing two Paraguayan asphalt supply companies, Aldia SA and Createc SA. SEPRELAD records cited by investigators indicate these firms experienced an extraordinary surge in revenue during Abdo Benítez’s term – multiplying their income more than seventyfold. This explosive growth appears entirely disconnected from the former president’s declared personal or business income, raising profound questions about hidden business dealings and the potential exploitation of political influence for financial gain.

Denial and Political Context

Facing serious allegations, former President Abdo Benítez has vehemently denied any wrongdoing. He contends the investigation is politically motivated, stemming from internal power struggles within the long-ruling Colorado Party. The party has indeed been marred by numerous corruption scandals over the years. Notably, Abdo Benítez’s predecessor, Horacio Cartes, also faces significant corruption charges and US sanctions.

The Stakes for Paraguay and Beyond

This Paraguay corruption probe transcends national borders. When nations fail to detect or prevent high-level asset concealment and corruption, it erodes public trust, discourages vital foreign investment, and undermines democratic institutions. Paraguay’s investigation, leveraging international cooperation to trace complex financial flows, underscores the critical importance of robust financial transparency mechanisms for any country seeking economic stability and good governance.

Despite enacting stronger anti-money laundering frameworks in recent years, Paraguayan officials acknowledge the persistent challenge of combating sophisticated financial crimes. Limited resources, legal complexities, and procedural delays often hamper prosecutions. This case starkly highlights the global imperative for unwavering transparency among leaders and the continuous need for vigilance against corruption – essential for protecting public funds and fostering fair economic opportunity.

The path forward for Paraguay hinges on the integrity and outcome of this high-stakes investigation. As authorities pursue the evidence, the world watches, a reminder that accountability at the highest levels remains fundamental to a nation’s health and its citizens’ faith.

Must Know

Q: What is the main accusation against Paraguay’s former President Mario Abdo Benítez?
A: Abdo Benítez and his wife are accused of concealing over $21 million in offshore bank accounts located in the Seychelles. Authorities allege this wealth was hidden during and after his presidency, violating laws requiring full asset disclosure by public officials. The probe investigates potential asset concealment, money laundering, and abuse of power.

Q: What specific evidence triggered this Paraguay corruption probe?
A: The investigation was launched after Paraguay’s financial crimes unit (SEPRELAD) uncovered documents showing two companies linked to Abdo Benítez opened accounts in Seychelles banks. These accounts received large international wire transfers (up to $1.7 million) that were never declared in his mandatory presidential asset disclosures. Suspicious revenue surges in two local asphalt companies during his term also raised red flags.

Q: How does Abdo Benítez respond to the allegations?
A: The former president strongly denies any wrongdoing. He claims the investigation is politically motivated, orchestrated by rivals within his own Colorado Party, which has a history of internal conflicts and past corruption scandals involving other prominent figures.

Q: Why is this Paraguay corruption probe significant internationally?
A: This case highlights the global challenge of tracking illicit wealth and holding powerful figures accountable. Failure to combat high-level corruption deters foreign investment, erodes public trust in government, and undermines democratic institutions. Paraguay’s use of international cooperation in this probe demonstrates the importance of cross-border financial transparency efforts.

Q: What challenges does Paraguay face in prosecuting such cases?
A: Paraguayan authorities acknowledge difficulties in prosecuting complex financial crimes despite stronger laws. Challenges include limited investigative resources, intricate legal procedures that cause delays, and the sophisticated methods often used to hide illicit funds internationally.

Q: What companies are under scrutiny beyond the offshore accounts?
A: Investigators are examining two Paraguayan asphalt supply firms, Aldia SA and Createc SA. Records show their revenues multiplied over seventy times during Abdo Benítez’s presidency, a surge seemingly disconnected from his declared income, prompting suspicions of hidden business interests or influence peddling.