U.S. sanctions South American tobacco company for aiding former Paraguay leader

Aug. 6 (UPI) -- The Treasury and State Department announced sanctions on the Paraguayan tobacco company Tabacalera del Este S.A. for giving financial assistance to former Paraguayan President Horacio Manuel Cartes Jara, who had been previously blacklisted by the United States.

Cartes once owned -- directly or indirectly -- a 50% interest in the tobacco company, known as Tabesa. U.S. officials said the company has made payments and still plans on paying him "millions of dollars," despite sanctions against him.

Last year, the Treasury sanctioned Cartes and Vice President Hugo Adalberto Velazquez Moreno for corruption. The Treasury alleged that Cartes and Velazquez were connected to the corruption in government contracts or the extraction of natural resources or bribery, including misappropriation of state assets or the expropriation of private assets for personal gain.

"Today's actions reinforce the United States' sanctions on former President Cartes and demonstrate the U.S. commitment to ensuring the integrity of our sanctions programs and inhibiting Cartes's ability to receive financial benefits," State Department spokesman Matthew Miller said in a statement .

"The United States remains dedicated to ensuring accountability for Cartes and to promote meaningful anti-corruption reform in Paraguay."

The Treasury said the move builds on the Global Magnitsky Human Rights Accountability Act that was issued in 2017.

"While Cartes no longer owns Tabesa following a sales agreement to acquire Carte's share in the company, Tabesa has made -- and plans to continue making -- payments worth millions of dollars to Cartes."