TOP STORY
Deep Shi
Is Paraguay’s president on China’s payroll? That’s the explosive insinuation made by a new Al Jazeera investigation. Filmed via undercover camera, Shi Dizi — a shady Chinese entrepreneur and bitcoin miner — claims to have paid Santiago Peña $8000 and opposition candidate Efraín Alegre $3000 each month during the 2023 election campaign, plus “private sponsorships.” Both men deny it.
Also allegedly having received gifts and cash are former Ciudad del Este mayor Miguel Prieto and Paraguay’s national immigration director. Vice-president Pedro Alliana and five senators were reportedly in line for a $1.5m payoff as well, according to Shi. “This country is ours,” he says at one point, marvelling at how cheap it is to bribe Paraguayan officials.
Plot twist: Shi later sought to install a KK Park-style online scam compound on land rented from the grandson of dictator Alfredo Stroessner in Nueva Asunción, complete with a 100MW energy supply, its own substation, and security provided by a nearby military base.
THE PARAGUAY POST ANALYSIS:
Paraguay is the last country in South America to recognise Taiwan, and geopolitical competition for its loyalties are heating up. Allegations of Chinese cyberespionage are mounting, while Taipei’s political slush funds have provoked recent scandals.
But Shi’s claims to be receiving orders from China’s consulate in São Paulo could be an exaggeration: he seems more interested in lining his own pockets than advancing Beijing’s interests in Asunción.
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POLITICS & FOREIGN POLICY
Peña at the UN
If the PRC has been bribing Peña, it hasn’t (yet) paid off. At last week’s UN General Assembly in New York, Paraguay’s president called for Taiwan to get a seat, and took a swipe at China, criticising “deceitful economic models that come with authoritarianism, mass surveillance and the erosion of fundamental liberties.” Paraguay’s stance is costing it a “huge amount economically,” he conceded, but “doing the right thing is priceless.”
Peña also mounted a defense of Israel, saying it has a “legitimate right to defend itself” against Hamas, and held a grinning encounter with Israeli PM Benjamin Netanyahu on the sidelines of the assembly. Paraguay is one of the only countries to still publicly back Israel, whose onslaught in Gaza has killed an estimated 64,000 Palestinians and has been labelled a genocide by UN experts.
Also at the UNGA, Colombian president Gustavo Petro accused Paraguay of obstructing investigations into the murder of anti-mafia prosecutor Marcelo Pecci in Cartagena in 2022. Paraguay’s attorney-general responded that clues to the assassination’s mastermind lie in Colombia. Pecci’s widow Claudia Aguilera meanwhile recorded an emotional message to mark his 49th birthday and call for justice.
Police vs Gen Z March
Despite a heavy deployment of 4,000 police officers, hundreds of anti-corruption protesters marched through downtown Asunción last night in a leaderless, peaceful demonstration inspired by the youth-led Gen Z movement that toppled Nepal’s government earlier this month.
Around midnight, as marchers began to disperse, videos on social media showed mounted police charging through the streets and firing guns, lince cops ramming their motorbikes into crowds of people, and officers loading detainees into trucks. At least 30 people were reportedly arrested, most of them under 25.
Opposition congressman Raúl Benitez alleged that police had “orders to repress” and round up demonstrators “like in the [Stroessner] dictatorship.” Journalist Eduardo Quintana accused police of instigating the violence, called on Interior Minister Enrique Riera to resign, and said Peña could face impeachment.
Envelope-gate
Questions are still swirling about the sobres del poder, envelopes supposedly stuffed with US$200,000 and hidden under a bed in the presidential residence. The allegations feature in an ABC Color investigation that relies almost entirely on testimony by Peña’s former housekeeper, who says she was unjustly accused of stealing and was fired. ABC has photos of the envelopes, but not the cash.
The housekeeper also says Peña regularly received unregistered visits from winners of state contracts, including Ueno Bank boss Miguel Vázquez. Peña, who claims to have divested his stake in Grupo Vázquez after a conflict-of-interest scandal earlier this year, denies any wrongdoing.
BUSINESS & ECONOMY
Model or mirage?
Paraguay’s GDP expanded by 5.9% year-on-year in the first half of 2025 — the fastest of any Latin American economy — according to Central Bank data. The BCP credits a strong performance by services, manufacturing, hydroelectric generation, ranching and construction, and expects full-year growth to be 4.4%.
The boom has caught international attention, with Argentine president Javier Milei praising Paraguay’s low-tax, high-growth, small-state model as an “example” for South America at CPAC in Asunción earlier this month.
In an interview with the Post, economist Rodrigo Ibarrola questions whether Paraguay’s overreliance on agroindustry and its sky-high rates of informality are a recipe for long-term prosperity.
Spotlight on the Chaco
Filadelfia hosts the sixth Global Encounter of the Gran Chaco this week: a sustainable development summit of some 400 business representatives, Indigenous leaders, NGOs and diplomats. On the agenda: equal access to water and energy, protecting biodiversity, climate resilience, and environmental justice.
The Chaco takes up two thirds of Paraguay but is home to just 4 percent of the population. Yet the dusty outback is now seen as an emerging business hub, with the expected completion of a bridge to Brazil in March 2026 representing the capstone of the Bioceanic Road Corridor. The busy new highway is likely to have a major impact on local native peoples, including those living in isolation.
CULTURE
Under The Flags, The Sun
Last chance to catch Bajo Las Banderas, El Sol. The award-winning doc on the Stroessner regime — stitched together from rare footage unearthed from dozens of overseas archives — plays Asunción and CDE theatres until October 1.
Paraguay’s entry to the 2025 Oscars, the film is chilling and captivating, with moments of dark humour (like the pigeon now seemingly nesting in the shoes of the dictator’s toppled statue).
In an exclusive interview with the Post, director Juanjo Pereira talks about the need to “strip away some of the reverence” still felt by many in Paraguay towards the 1954-89 regime, the longest in South American history.
World Harp Festival
The eighteenth edition of the Festival Mundial del Arpa runs Thursday-Sunday, with concerts spread between the Casa la Integración on Av. Mariscal López and the municipal theatre in el centro. There are also masterclasses on Saturday afternoon lead by Isabelle Moretti (France) and Yofre Brito (Colombia).
Along with world-class performances from Karin Carrera Matsuki (Japan) and Klara Poznachowska (Poland) on Thursday, the real highlight will be the Sunday concert from 6pm, which sees Paraguayan harpist Papi Galán join forces with Brazil’s Indigenous Orchestra, preceded by homegrown favourites Idolos de Piribebuy.
Minga Guazú Dream of Glory
Ralph Hannah has a charming write-up of the unexpected rise of Minga Guazú, a lower-league soccer club near Ciudad del Este that recently took down top-division side Sportivo Luqueño. There’s also an interesting recap of how British railway engineers brought football to Paraguay: or did the Guaraní invent it?
IN OTHER NEWS
District-level poverty map unveiled | ASUFICC line-up revealed | Two cops fight off 20 bandits | Trees versus cement | Paraguay boosts Middle East ties | Cartes eyes second term as ANR boss | Peruvian PCC ally captured in Paraguay | Floating solar plant advances