The Brazilian government confirmed on Monday that its intelligence agency, Abin, monitored Paraguayan officials during the administration of former President Jair Bolsonaro. The surveillance targeted negotiations over the Itaipu hydroelectric plant and ended in March 2023, during the early months of President Luiz Inácio Lula da Silva’s term.
The confirmation followed a report by Brazilian news outlet UOL, which stated that Abin infiltrated computer systems of “five or six” senior Paraguayan officials to access confidential data related to Itaipu’s tariffs and Annex C of the 1973 treaty.
Brazil’s Foreign Ministry stated the current administration had no involvement in the operation and that it was terminated by the interim director of Abin once it was discovered.
“President Lula’s administration categorically denies any involvement in the intelligence action reported today against Paraguay,” the statement read.
On Tuesday, Paraguay’s Foreign Minister Rubén Ramírez Lezcano summoned Brazil’s ambassador in Asunción, José Antônio Marcondes, to request explanations. He announced that Paraguay’s ambassador to Brazil, Juan Ángel Delgadillo, was recalled to Asunción for consultations.
“This is a violation of international law, the interference of one country in the internal affairs of another,” Ramírez said.
The Ministry of Information and Communication Technologies launched an investigation into the monitoring, which allegedly took place from June 2022 to March 2023. Paraguayan authorities stated they received no reports on the matter from the previous government.
Paraguay suspended negotiations with Brazil on the revision of Annex C of the Itaipu Treaty. Ramírez said discussions would remain on hold until Brazil provides “the relevant clarifications to the satisfaction of the Government of the Republic of Paraguay.”
Annex C sets the financial terms under which Paraguay sells excess electricity to Brazil. Talks had been ongoing to revise the agreement, with a deadline of May 30, 2025.
In 2023, both countries agreed to increase the tariffs Brazil pays to $19.28 per kilowatt for three years. They also signed a memorandum to allow Paraguay to sell surplus energy to Brazil’s open market.
The espionage was ordered in June 2022 under Bolsonaro’s administration and stopped on March 27, 2023, according to Brazil’s Foreign Ministry. Luiz Fernando Corrêa, who halted the operation, was serving as Abin’s interim director at the time. He officially became director-general on May 29, 2023, after Senate approval.
Former President Bolsonaro has not made public comments on the case. He currently faces trial on multiple counts before Brazil’s Supreme Court, including charges related to alleged attempts to overturn the 2022 election.