Canadian Court Dismisses Itaipú's Third Contempt Motion Against Eduardo García, Raising Questions About 15-Year Litigation
The Ontario Superior Court dismissed Itaipú pension fund's third contempt motion against Eduardo García, highlighting failures to recover assets and raising concerns about the litigation's purpose and transparency.
The Ontario Superior Court of Justice has dismissed another contempt motion filed by the pension fund of Itaipú Binacional (Cajubi) against Eduardo García, marking the third consecutive failed attempt and intensifying scrutiny of the long-running civil proceedings that have spanned more than 15 years.
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, never made payments to former Cajubi directors, and possesses no hidden assets or funds in any jurisdiction. Cajubi failed to prove these statements were false or defamatory.
This dismissal follows two earlier failed motions dismissed by Justice Osborne on October 31, 2023, and December 4, 2024, where Cajubi similarly sought contempt findings related to alleged accounting records and asset disclosures. Despite Cajubi's public claims that the Canadian proceedings would recover substantial sums linked to García, the defense asserts that no such assets were ever identified or recovered, despite approximately C$30 million reportedly spent on legal fees over the years.
The case now faces renewed 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. They stated: "This matter can only be clarified through full disclosure of the banking and financial records tied to the transactions at issue. 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.