VZCZCXYZ0000
OO RUEHWEB

DE RUEHAC #0425 1782227
ZNR UUUUU ZZH
O 262227Z JUN 08
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7033
INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
RHMFISS/HQ USSOUTHCOM MIAMI FL PRIORITY
RHEHNCS/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEAWJB/DEPT OF JUSTICE WASHDC PRIORITY

UNCLAS ASUNCION 000425 
 
SENSITIVE 
SIPDIS 
 
PASS TO DOJ KOCONNOR, USAID/LAC/SA AND MCC MKLADAKIS; STATE 
FOR WHA/BSC MDRUCKER, CCROFT, KBEAMER; INL/P DGRAHAM; 
INL/CCJ JSHOWELL; AND G/TIP BFLECK 
 
E.O. 12958: N/A 
TAGS: PTER KCRM PREL PGOV ECON PA
SUBJECT: PARAGUAYAN SENATE OVERRULES PRESIDENT ON PENAL CODE 
 
REF: A. 07 ASUNCION 420 
     ¶B. 07 ASUNCION 1069 
     ¶C. 07 ASUNCION 994 
     ¶D. ASUNCION 405 
 
¶1.  (SBU) SUMMARY:  Paraguay's Senate overruled President 
Duarte's partial veto of the revised penal code June 25 and 
passed it into law, ending the penal code's 15-month journey 
through the legislative process.  Final passage is a success 
for Paraguay, but it still has much to do to reform its legal 
and judicial systems.  Post recognizes the continued need for 
RLA presence to push the companion criminal procedure code 
through the same legislative process.  The revised penal code 
-- to take effect in 2009 -- will give the new Lugo 
administration the legal framework it needs to advance law 
enforcement and judicial reform, two of its main priorities. 
END SUMMARY. 
 
¶2.  (U) The Paraguayan Senate overruled President Nicanor 
Duarte Frutos' partial veto of the revised penal code June 25 
and passed it into law, ending the penal code's 15-month 
journey through the legislative process (refs A and B). 
Congress is to publish the newly amended penal code within 
two weeks, and all changes officially go into effect one year 
later.  Although Duarte January 16 approved 67 of the 70 
amendments to the penal code, he delayed final passage of the 
penal code by vetoing three statutes, arguing that they 
watered down current laws -- statutes on pimping, child 
pornography, and the conditional release of prisoners and 
detainees.  By overruling Duarte and passing it into law, 
both the Senate and the Chamber of Deputies upheld the 
amended penal code as originally approved by Congress in 
December 2007.  The penal code amendments include significant 
new statutes on money laundering, intellectual property 
rights (IPR), and trafficking in persons (TIP), among many 
others. 
 
¶3.  (U) Final passage of the new penal code is a success for 
Paraguay, but it still has much to do to reform its legal and 
judicial systems (refs A and B).  Paraguay must still make 
substantial modifications to its criminal procedure code to 
move its judicial system toward an accusatory criminal 
justice system.  These much-needed changes would enable 
prosecutors and judges to investigate and prosecute cases 
effectively under the penal code.  The Justice Department's 
Resident Legal Advisor (RLA) has been working closely and 
creatively with the Paraguayan Congress to amend the criminal 
procedural code.  These amendments are currently pending with 
the Chamber of Deputies Legislative Committee (ref C). 
Without new funding for the position, the RLA's work is 
currently set to end in October.  Were that to happen, the 
amended criminal procedural code would undoubtedly languish 
in Congress without his guidance. 
 
¶4.  (U) Ambassador and the Country Team recognize the 
continued need for RLA presence to push the companion 
criminal procedure code (ref C).  Post continues to seek 
additional funding to allow the RLA to continue his work 
through the Justice Department's OPDAT Program.  In addition, 
the RLA would shepherd a terrorism financing statute through 
the legislature.  (NOTE:  Egmont Corporation just this week 
suspended Paraguay due to its lack of a terrorist financing 
law.  Its passage thus will be a high priority for the Lugo 
administration (ref D).  END NOTE.)  The RLA would also work 
with Congress to draft and implement a new asset forfeiture 
law to accompany the penal and criminal procedural codes. 
These criminal judicial reforms make the RLA an integral -- 
and virtually indispensable -- member of the Country Team. 
 
¶5.  (SBU) COMMENT:  The revised penal code will give the new 
Lugo administration the legal framework it needs to advance 
law enforcement and judicial reform, two of its main 
priorities.  Building on the success of the penal code, Post 
will continue to work with the Paraguayan Congress to 
implement further judicial reforms and support Paraguayan 
fight against corruption.  However, keeping the RLA at Post 
is key to making this happen.  END COMMENT. 
 
Please visit us at     http://www.state.sgov.gov/p/wha/asuncion 
 
Cason