Ex Paraguay leader accused of public funds squander

The money apparently came from an Itaipú hydroelectric dam special fund, according to press reports published Tuesday in Asuncion. Itaipú is South America's largest dam and is shared with Brazil. "The sum dilapidated in 20 months coincides with the electoral campaign of the then ruling Colorado Party", pointed out the morning newspaper ABC from Asunción, based on documents presented to Paraguayan prosecutors by Itaipu auditors. "Most of the money was for broadcasting stations, a publicity agency closely linked to former president Duarte, television channels, printed press and a mysterious item under the name of "special press"", pointed out Mabel Rehnfeldt, who wrote the story. The sums involved coincide with the intensification of the Colorado party electoral campaign and are directly linked to very aggressive ads. According to Mabel the Paraguayan government was paying journalists and media at the rate of 1.000 US dollars every 60 minutes during a period of twenty months. Last April 20, the former Catholic bishop Fernando Lugo supported by a catch-all movement managed to defeat the incumbent candidate Blanca Ovelar from the divided Colorado party 40% to 30%, thus becoming president of Paraguay. President Lugo's victory ended sixty years of undisputed rule and hegemony from the Colorado Party.