1 of 2 | The United States Treasury Department has sanctioned former Paraguayan President Horacio Cartes, shown here, and current Vice President Hugo Adalberto Velazquez Moreno, for corruption. File Pool photo by Gali Tibbon/UPI |
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Jan. 26 (UPI) -- The United States Treasury Department's Office of Foreign Assets Control on Thursday sanctioned Paraguay's former president, Horacio Manuel Cartes Jara, and current Vice President Hugo Adalberto Velazquez Moreno, for corruption.
The Treasury Department said both Cartes and Velazquez were being designated for involvement in corruption related to government contracts or the extraction of natural resources or bribery, including misappropriation of state assets or the expropriation of private assets for personal gain.
"Cartes paid party members up to $10,000 each to support his candidacy ahead of the 2013 elections. While President of Paraguay, Cartes continued his corrupt schemes, including making cash payments to officials in exchange for their loyalty and support," reads the text of a press release from the Treasury Department Thursday.
The agency added that Velazquez, "also engaged in corrupt practices to interfere with legal processes and protect himself and criminal associates from criminal investigations, including by bribing and threatening those who could expose his criminal activity."
It also designated Tabacos USA Inc., Bebidas USA Inc., Dominicana Acquisition S.A. and Frigorifico Chaja S.A.E. for being owned or controlled by Cartes.
The Treasury Department accuses both men of having ties to the Lebanese militant group Hezbollah.
"Cartes and Velazquez both have ties to members of Hezbollah, an entity designated by the U.S. Department of State as a Foreign Terrorist Organization and the target of multiple OFAC designations," the agency said. "Hezbollah has regularly held private events in Paraguay where politicians make agreements for favors, sell state contracts, and discuss law enforcement efforts in exchange for bribes."
The new sanctions mean that any assets of the sanctioned individuals in the United States will be blocked and must be reported. Additionally, any entity with more than 50% ownership of sanctioned individuals will also be blocked unless there is a special exemption.
In July, Cartes was designated by the State Department, which also noted his links to U.S.-designated terrorist entities.
