Paraguay becomes active cocaine link and supply chain

RIO DE JANEIRO, BRAZIL – An investigation work highlights the drug business era where production, transport, and distribution are part of a supply chain based on the logic of leasing and the provision of services.

Drug traffickers have found in Paraguay a fertile ground for laundering their assets with investments ranging from construction, land purchase, service stations, hotels, border universities, and even pharmacies. This is the conclusion of an investigation by sociologist Carlos Peris, who concludes that Paraguay is no longer a transit territory but rather an active link in cocaine production.

The sociologist cross-referenced data with the Prosecutor’s Office, the Anti-Drug Secretariat, the police, and the Interior sources. The data collected covers the period ranging from January 2016 to 2020.

The investigation into the illegal cocaine market in Paraguay shows that the development of drug trafficking in the country underwent several stages from the era of the border police/military groups (1950-1967); through the military hierarchy (1967 to 1989); and the stage of the zonal bosses (1989 to 2001). Currently, it is the era of entrepreneurs, where production, transportation, and distribution are part of a supply chain under the logic of leasing and provision of services.

There is a suspicious link between port imports and drug trafficking

The work mentions that last February 24th, European surveillance officials reported the unprecedented seizure of 23 tons of cocaine in Hamburg (Germany) ports and Antwerp (Belgium). The cargo originated in Paraguay and was transported by the river in containers.

InSight Crime reports that the country is experiencing new criminal dynamics, which is reflected in a renewed role in drug trafficking, especially in relation to cocaine.

Peris stresses that it is not a question of greater control at the Port. “If the ports are controlled, it will take longer for the containers to depart, and no one will want their container to take longer to leave because they will not be able to meet delivery deadlines. I am not referring to the illegal system but rather the legal system. In other words, if cocaine is moving in containers, it is precise because there is a lack of control policy in the ports, not only in Paraguay but in the world, so that legal and illegal goods arrive as quickly as possible. Otherwise, they would be dead ports,” he said.

Logistics. The logistics of cocaine transport in Paraguay are perfected with connections rewarded for supporting the cargo. Farm laborers receive between US$500 and US$1,000 for receiving and preparing the planes. Farm owners receive up to US$15,000 for leasing their land for the runways. Police officers receive up to US$400 for not checking cargoes. A pilot can charge up to US$2,000 per flight.

Peris argues in the report that drug traffickers have found a fertile ground to launder their money, with indirect investments in the purchase and construction of apartment buildings or cattle ranches. Also, direct investments in the opening of hotels, service stations, pharmacies, border universities, and stores.

Only 2% of the drugs produced are seized

During the years 2019 to 2020, 7,313 kilos of cocaine were seized in the territory.
Data from the Paraguayan Drug Observatory show that in 2019 a total of 4,313 kg of cocaine were seized. While in 2020 (pandemic period), it was reduced by 3,000 kg.

International restrictions affected the flow of containers in the ports. The imported flow of goods was also reduced from 213,019 (2019) to 180,487 (2020). “The deep relationship between imports through ports and narcotics is not surprising,” the report states.

Carlos Peris stated that the United Nations Drug Observatory itself says that most drugs are transported through containers.

“As containers must flow, only 2% is checked. Through the Saviano method, based on the quantities of seizures made in Colombia and Italy, it is found that an equal percentage of containers are seized. It is estimated at 2% of what is actually circulating in the drug market,” he said.

The report emphasizes that considering the situation in 2020, of the 150,000 kilos, only approximately 2.6% of what was produced remained in the domestic market.

The main locations of local cocaine use appear on the map, mainly Ciudad del Este, Asunción, Encarnación, Filadelfia, Caaguazú and Salto del Guairá.

Farm laborers are paid between US$500 and US$1,000 per month for the reception and preparation of planes.

Farm owners receive between US$10,000 and US$15,000 per month for leasing land suitable for installing runways.

Transport companies are paid US$800 per trip for traveling along the routes. Police officers receive up to US$400 to look the other way.

Dockers receive US$12,000 per trip for helping conceal drug cargo on barges.

Port guards receive from US$2,500 to US$5,000 for bypassing container checks. This amount is for each load.