A significant scandal involving the president of the National Institute of Rural Development and Land (INDERT) in Paraguay, Gail Gina González Yaluff, has emerged over the acquisition of 542 hectares for over G. 16 billion in the Paraguayan district of Itakyry, located in the northern part of Alto Paraná department. This deal directly benefits businessman Khalil Ahmad Hijazi, who is facing charges in Paraguay for a massive tax evasion case exceeding US$ 52 million and has been sanctioned by the U.S. Department of the Treasury.
According to a report from Diario TNPRESS, the Lebanese businessman used the company Complejo Comercial Paraná Sociedad Anónima, with his wife, Zulma Damiana Fernández, as its legal representative, and direct family members as shareholders to execute this extravagant deal.
This case is further complicated by the fact that they are allegedly barred from carrying out such transactions due to the charges they face for a tax evasion amounting to US$ 52,516,091.30, thus the transfer of properties should not have occurred. Despite this background, the head of the State portfolio awarded the contract through an Exception procedure to the firm managed by Hijazi.
Paraguayan senator Enrique Riera Escudero (ANR/HC) has harshly criticized this tender, making a public denunciation and requesting reports and all relevant background information regarding the case. The Colorado legislator also highlighted Khalil Ahmad Hijazi’s national and international legal situation.
“I want to publicly denounce the deal occurring at the INDERT. This involves the direct purchase of a property that was bought two years ago for 1.6 billion, now for 16 billion, to acquire 542 hectares,” warned the parliament member.
He noted that Hijazi “has been denounced by the U.S. Department of the Treasury, which also sanctioned him for money laundering, human rights abuses, and corruption worldwide,” referring to actions taken by the Office of Foreign Assets Control (OFAC) on August 24, 2021.
“Why wasn’t expropriation requested? Why is a direct purchase being made? Why use the Exception procedure? Since we don’t have money to buy land for campesinos,” the legislator expressed. “Who is behind all this? Who else is involved? Why are we buying with the little we have? Was there gold found? Are there diamonds?” he questioned further.
“What is striking is who is selling the property, the daughter and wife of the previous acquirer disguised as a corporation,” he indicated, citing the Lebanese businessman who is facing charges alongside his wife Zulma Damiana Fernández and other family members from the Public Ministry for smuggling, tax evasion, and producing false documents.
All members of the Hijazi clan were processed in Paraguay for these crimes on December 30, 2021, by prosecutor María Estefanía González. The head of the INDERT was aware of these backgrounds; however, notably, they completed the “operation” on July 25 and awarded the lucrative tender. The State portfolio began receiving offers on Thursday, April 28, 2022.
The multi-million tender ID 408.027 was carried out under the category of Acquisition and Leasing of Properties. It pertains to properties identified with Registrations No. K06/443, Record No. 648 with an area of 345 has. 9640 m2 and K06/2075, Record No. 2389 with an area of 197 has. 0099 m2, located in the District of Itakyry, in the northern part of the tenth department.
Sanctions
Khalil Ahmad Hijazi operated a company named España Informática S.A. for several years, which was established as a sole proprietorship in 1979 and transitioned to a corporation in 2004. It later changed its name to Apolo and is currently closed.
Sanctions under the Global Magnitsky Act, which Washington uses to penalize those involved in corruption abroad, were applied in August 2021 against Lebanese-Brazilian Kassem Mohamad Hijazi, 48; his cousin Khalil Ahmad Hijazi, 60; and Liz Paola Doldán González, 34, both Paraguayan nationals. All three reside in Ciudad del Este (Alto Paraná).
The firms España Informática S.A., Emprendimientos Inmobiliarios Misiones S.A., Apolo Informática S.A., Mundo Informático Paraguay S.A., and Mobile Zone International Import-Export S.R.L. were also blocked from the U.S. financial system.
As a customs broker since at least 2017, Kassem Mohamad Hijazi led a money laundering organization linked to drug trafficking based in Ciudad del Este, the Treasury stated, referencing DEA and DHS investigations. Paraguay announced his arrest in 2021 for extradition to the United States.
The Treasury indicated that his “strong ties” with politicians, police, prosecutors, and currency brokers granted him “security” and “economic power,” and his “connections” with government officials allowed him to circumvent the law.
Police in Alto Paraná department reportedly receive monthly salaries to work for Kassem Mohamad Hijazi, as an example. According to the Treasury, the Hijazi Network operates in the United States, South America, Europe, the Middle East, and China.
The company España Informática S.A. is utilized to coordinate with suppliers in the United States and China to import electronic equipment to Paraguay, aiming to evade taxes and launder money, the report indicated, estimating the annual volume of goods imported into Paraguay at “several hundred million dollars.”
One of Kassem’s associates, Liz Paola Doldán González, sanctioned for acting as an intermediary in shipments to the U.S. through bribing customs officials, had previously been targeted in July 2019 in an operation dubbed “Call” by Paraguay’s anti-corruption prosecutor.