The Ontario Superior Court of Justice has dismissed the latest contempt motion filed by the pension fund of Itaipú Binacional (Cajubi) against Eduardo García, marking the third consecutive failure for Cajubi in proceedings that have spanned more than 15 years. Justice Osborne ruled on May 5, 2026, that the evidence did not prove beyond a reasonable doubt that García was in contempt of a prior court order, nor that a contempt finding was appropriate.
The motion sought to hold García in contempt for publicly stating that he never received, managed, or controlled the alleged C$20.8 million at issue, that he never made payments to former Cajubi directors, and that he holds no hidden assets. Cajubi failed to demonstrate these statements were false or defamatory. This follows two earlier failed motions dismissed by Justice Osborne on October 31, 2023, and December 4, 2024, which involved similar allegations regarding accounting records and asset disclosures.
Throughout the litigation, Cajubi has publicly claimed it would recover substantial sums linked to García, but according to the defense, no assets have been identified or recovered despite over 15 years of legal battles and approximately C$30 million reportedly spent on legal fees. The case has drawn renewed scrutiny due to unanswered questions about the final destination of the funds and missing banking records, including Swiss accounts once held at Clariden Leu, now owned by Credit Suisse.
Representatives supporting García argue that the Ontario proceedings were used to sustain a misleading public narrative in Paraguay while critical financial evidence and relevant parties were never fully pursued through discovery. “This matter can only be clarified through full disclosure of the banking and financial records tied to the transactions at issue,” they stated. “The public deserves transparency regarding what happened to every dollar.”
The controversy extends beyond the litigation itself. Critics allege that the lawsuit became part of a broader effort to justify controversial changes to Itaipú’s pension system, including the imposition of a Chilean-style pension model that increased pension-related costs for workers, retirees, and Paraguayan electricity consumers. A formal complaint has reportedly been filed with the Canadian Judicial Council against judges involved in the proceedings, alleging judicial misconduct and participation in a broader cover-up. Additional complaints are expected before Paraguayan pension regulatory authorities.
The Ontario Superior Court case number is CV-11-00009210-CL. For further details, contact Julio Benítez at Benítez Cubilla & Asociados, Ciudad del Este, Paraguay, via phone at +595 983 669556.
