Paraguay has taken decisive action in response to allegations of espionage activities conducted by Brazil. The Paraguayan Foreign Ministry issued a statement confirming the recall of Brazilian Ambassador Jose Antonio Marcondes to provide clarity on these accusations. Alleged surveillance activities are linked to the negotiations concerning the Itaipu Hydroelectric Power Plant.
As a result of these developments, the bilateral discussions regarding the Itaipu power plant, which were expected to conclude by the end of May, have been suspended until a formal statement is made by Brazil.
The initial report, published by Brazilian media outlet UOL, suggests that Brazil’s intelligence agency, Abin, attempted to infiltrate the computer systems of Paraguayan officials during the Itaipu negotiations. The alleged goal of this espionage was to acquire sensitive information regarding the taxation aspects of the Itaipu project, a joint venture between the two nations.
Following these revelations, the Brazilian government acknowledged that such espionage activities were indeed carried out under former President Jair Bolsonaro. However, Brazil clarified in a statement that the current administration, led by President Luiz Inacio Lula da Silva, was not involved in these intelligence operations and had ceased them upon discovery in March 2023.
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