The Ontario Superior Court of Justice has dismissed the latest contempt motion filed by the pension fund of Itaipú Binacional (Cajubi) against Eduardo García, marking the third consecutive failure for the fund in its long-running civil proceedings. On May 5, 2026, Justice Osborne ruled 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 denying receipt or control of C$20.8 million, denying payments to former directors, and denying hidden assets.
This dismissal follows two earlier failed motions on October 31, 2023, and December 4, 2024, both also dismissed by Justice Osborne. The repeated setbacks have intensified scrutiny of the litigation, which has spanned over 15 years and reportedly cost approximately C$30 million in legal fees. Despite Cajubi's public claims that the proceedings would recover substantial sums linked to García, no assets have been identified or recovered.
The case raises unresolved questions about the final destination of the funds and missing banking records, including Swiss accounts once held at Clariden Leu, now owned by Credit Suisse. Representatives supporting García argue that the Ontario proceedings have been used to sustain a misleading narrative in Paraguay while critical evidence and relevant parties were never fully pursued through discovery. They called for full disclosure of banking and financial records to clarify what happened to every dollar.
Beyond the litigation, critics allege that the lawsuit was part of a broader effort to justify controversial changes to Itaipú's pension system, including the imposition of a Chilean-style model that increased costs for 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 cover-up. Additional complaints are expected before Paraguayan pension regulatory authorities.
The case number is CV-11-00009210-CL. For more information, contact Julio Benítez at Benítez Cubilla & Asociados.
