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 failed attempt and raising serious questions about the credibility of the 15-year legal battle.
On May 5, 2026, Justice Osborne ruled that the evidence did not prove beyond a reasonable doubt that García was in contempt of a court order from October 31, 2023. 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, that he never made payments to former Cajubi directors, and that he possesses no hidden assets or funds. Cajubi failed to prove these statements were false or defamatory.
This dismissal follows two earlier failed contempt motions rejected by the same judge on October 31, 2023, and December 4, 2024, related to alleged accounting records and asset disclosures. According to the defense, despite more than 15 years of litigation and approximately C$30 million reportedly spent on legal fees, no assets have been identified or recovered.
The case faces renewed scrutiny over 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 stated 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 said. “The public deserves transparency regarding what happened to every dollar.”
The controversy extends beyond the litigation. 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 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.
