The Ontario Superior Court of Justice has dismissed the third contempt motion filed by the pension fund of Itaipú Binacional, known as Cajubi, against Eduardo García, marking a significant setback in a legal battle that has spanned more than 15 years. Justice Osborne ruled on May 5, 2026, that the evidence did not prove beyond a reasonable doubt that García was in contempt of a court order from October 31, 2023. This dismissal follows two earlier failed motions in 2023 and 2024, all heard by the same judge.
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. Cajubi failed to prove these statements were false or defamatory. The repeated failures raise serious questions about the credibility and purpose of the litigation, which has cost approximately C$30 million in legal fees without recovering any substantial sums, according to the defense.
The case has drawn 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 matter can only be clarified through full disclosure of banking and financial records tied to the transactions. They emphasized that the public deserves transparency regarding what happened to every dollar.
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 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 cover-up. Additional complaints are expected before Paraguayan pension regulatory authorities.
The Ontario Superior Court case number is CV-11-00009210-CL. The dismissal of this third contempt motion underscores the ongoing challenges in a case that has yet to achieve its stated goals, leaving key financial questions unresolved and fueling concerns about the integrity of the legal process.
