US Sanctions Paraguayan Tobacco Company for Corruption

The Biden administration has imposed sanctions on Paraguayan tobacco company Tabacalera del Este, accusing it of enriching former president Horacio Cartes, who was previously sanctioned for corruption. The US Treasury Department claims that the company funneled millions to Cartes through a sales agreement and has ties to Hezbollah militants, highlighting a pattern of corruption in Paraguay. Cartes, who served as president from 2013 to 2018 and remains politically influential, denies ownership and involvement in the company, labeling the allegations as politically motivated. The sanctions reflect ongoing US efforts to address corruption in Paraguay, where deep-rooted issues hinder effective legal accountability. Despite the allegations, Paraguay's current president, Santiago Peña, is aligned with Cartes and the conservative Colorado party. The Treasury's actions are part of a broader initiative to target entities involved in human rights abuses and corruption globally.