19
b)
Testimony of Ricardo Lugo Rodríguez, Deputy from 1989 to 1993
He has been practicing as a lawyer since 1964. He was the first Deputy for
the Ferrerista Revolutionary Party, an office he held from 1989 to 1993. He
continued in politics until 1998.
When he was a Deputy, he was a member of several committees in the
Chamber of Deputies, and of the Bicameral Unlawful Acts Investigation
Committee. The latter was a specialized body of the National Congress
composed of members of the Chambers of Deputies and Senators. The
Bicameral Unlawful Acts Investigation Committee was created in 1992; its
function was to investigate unlawful acts committed during “the dictatorship,”
and it was of a permanent nature until 1994 or 1995.
The Itaipú bi-national corporation is Paraguay’s largest initiative. It takes
advantage of the hydroelectric energy of the Paraná River and is considered
to be the largest hydroelectric power plant in the world and the second most
important engineering works of the century. It was constructed under a treaty
concluded between Paraguay and Brazil. The treaty established that the
construction of the dam should be “put out to bid.” Several companies took
part in the first public bid for the diversion of the Paraná River. However, the
Governments of Paraguay and Brazil agreed to by-pass the public bid and
award the construction contract by a “beneficial concession” (“concesión
graciosa”) to two companies: UNICOM for Brazil and CONEMPA for Paraguay.
CONEMPA was a limited liability company composed of five partners which
were five construction companies. Owing to the political connections between
the dictator and its members, CONEMPA, represented at the time by Juan
Carlos Wasmosy, an engineer, obtained the exclusive award of the
construction work on the Paraguayan side, and was also awarded the
construction of some work on the Brazilian side, to be carried out by its five
companies. Under the agreement between Paraguay and Brazil, CONEMPA
obtained 8% and UNICOM 92% of the construction work.
One of the first issues that the Bicameral Unlawful Acts Investigation
Committee examined was the report submitted by the Unified Workers
Central (Central Unitaria de Trabajadores) on corruption during construction
of the Itaipú hydroelectric power plant and systematic tax evasion by
CONEMPA. The Bicameral Committee presented its findings to the Seventh
Civil Court of first instance, and also “accompan[ied]” the Unified Workers
Central when it presented its “findings” to the Attorney General’s office,
reporting corruption in the construction of the Itaipú project and systematic
tax evasion, based on a concession granted by the former dictator of the
Republic, Alfredo Stroessner.
The original cost estimate for the construction of the Itaipú project ranged
from two thousand three hundred million to two thousand eight hundred
million dollars. However, the final cost was approximately twenty-two
thousand three hundred million dollars. Moreover, faced with a possible public
bid for the award of healthcare services for the Itaipú workers, CONEMPA
organized a healthcare activity and attributed “fabulous sums of money” to
itself. The Bicameral Unlawful Acts Investigation Committee of the National