The Ontario Superior Court of Justice has dismissed the latest contempt motion filed by the pension fund of Itaipú Binacional, known as Cajubi, against Eduardo García, marking the third consecutive failure for the plaintiff before the same judge. Justice Osborne ruled on May 5, 2026, that there was insufficient evidence to hold Mr. García in contempt, stating, "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 penalize Mr. García 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 in any jurisdiction. Cajubi failed to prove these statements false or defamatory. This ruling follows two earlier failed motions dismissed by Justice Osborne on October 31, 2023, and December 4, 2024, which similarly sought contempt findings related to accounting records and asset disclosures.
Over more than 15 years of litigation, Cajubi has publicly claimed that the Canadian proceedings would recover substantial sums linked to Mr. García. However, according to the defense, no such assets have been identified or recovered, despite approximately C$30 million reportedly spent on legal fees. The case now 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 Mr. 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," they stated. "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 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.
