The Ontario Superior Court of Justice has dismissed the third consecutive contempt motion filed by the pension fund of Itaipú Binacional (Cajubi) against Eduardo García, dealing another blow to the 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, marking the latest setback in a case that has spanned over 15 years.
Justice Osborne stated, "Having considered all of the evidence, I cannot conclude beyond a reasonable doubt that Mr. García is in contempt of paragraph 12 of the October 31, 2023 order, or that in all the circumstances such an order is appropriate in this case." The motion sought 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. Cajubi failed to prove these statements false or defamatory.
This dismissal follows two earlier failed motions on October 31, 2023, and December 4, 2024, where Cajubi similarly sought contempt findings related to accounting records and asset disclosures. Despite repeated public claims by Cajubi that the Canadian proceedings would recover substantial sums, no assets have been identified or recovered, and approximately C$30 million has reportedly been spent on legal fees.
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. Representatives supporting García argue that 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 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 increased costs for workers, retirees, and Paraguayan electricity consumers. A formal complaint has reportedly been filed with the Canadian Judicial Council against judges involved, alleging judicial misconduct and participation in a cover-up. Additional complaints are expected before Paraguayan pension regulatory authorities.
The Ontario Superior Court case number is CV-11-00009210-CL. The case highlights ongoing concerns about the use of international litigation and the need for transparency in cross-border financial disputes.
