The Ontario Superior Court of Justice has dismissed the third contempt motion filed by the pension fund of Itaipú Binacional (Cajubi) against Eduardo García, marking another setback in the long-running civil proceedings. Justice Osborne ruled on May 5, 2026, that the evidence did not support a finding of contempt beyond a reasonable doubt, rejecting Cajubi's attempt to hold García in contempt for publicly maintaining that he never received, managed, or controlled the alleged C$20.8 million at issue, never made payments to former Cajubi directors, and possesses no hidden assets.
This dismissal follows two earlier failed contempt motions dismissed by Justice Osborne on October 31, 2023, and December 4, 2024. Over more than 15 years of litigation, Cajubi has reportedly spent approximately C$30 million on legal fees but has failed to identify or recover any substantial sums allegedly linked to García. The case has drawn scrutiny due to unanswered questions about the funds' final destination and missing banking records, including Swiss accounts once held at Clariden Leu, now owned by Credit Suisse.
According to representatives supporting García, the Ontario proceedings were used to sustain a misleading public narrative in Paraguay while critical financial evidence and relevant parties were never fully pursued through discovery. "This matter can only be clarified through full disclosure of the banking and financial records tied to the transactions at issue," representatives stated. "The public deserves transparency regarding what happened to every dollar."
The controversy extends beyond the litigation itself. Critics allege that the lawsuit became part of a broader effort to justify controversial changes to Itaipú's pension system, including the imposition of a Chilean-style pension model that significantly increased pension-related costs borne by workers, retirees, and Paraguayan electricity consumers. A formal complaint has reportedly been filed with the Canadian Judicial Council against judges involved in the proceedings, alleging judicial misconduct and participation in a broader cover-up. Additional complaints are expected to be filed before Paraguayan pension regulatory authorities.
The Ontario Superior Court case number is CV-11-00009210-CL. For more information, contact Julio Benítez at Benítez Cubilla & Asociados in Ciudad del Este, Paraguay, via phone at +595 983 669556.