US Imposes Sanctions on Paraguayan Tobacco Giant Tied to Former President Cartes

The Biden administration has sanctioned Paraguayan tobacco company Tabacalera del Este for allegedly enriching former President Horacio Cartes, who was previously accused of corruption and bribery. Despite Cartes' denials and lack of criminal charges, the US Treasury Department asserts the company funneled millions to him. This raises concerns about corruption in Paraguay.

In a move underscoring its commitment to anti-corruption, the Biden administration on Tuesday imposed sanctions on Tabacalera del Este, a Paraguayan tobacco company, for allegedly enriching the controversial former president, Horacio Cartes. A cigarette tycoon, Cartes was sanctioned last year by the White House for corruption.

The US Treasury Department revealed that it was targeting Tabacalera del Este due to its ties with Cartes, who served as Paraguay's president from 2013 to 2018. Despite current President Santiago Peña being a protégé of Cartes, the sanctions highlight a "concerted pattern of corruption" involving bribes and associations with Hezbollah militants.

Treasury's Office of Foreign Assets Control identified Cartes as having significant holdings in the company, which is suspected of engaging in smuggling activities. While Cartes has dismissed these allegations, the US remains focused on ensuring accountability and meaningful anti-corruption reforms in Paraguay.

(With inputs from agencies.)