Curated News
By: NewsRamp Editorial Staff
May 29, 2026
Ontario Court Dismisses Another Contempt Motion in Itaipú Pension Fund Case
TLDR
- Cajubi's third failed contempt motion weakens its litigation credibility against Garcia after 15 years and $30M in legal fees.
- Justice Osborne dismissed the contempt motion because evidence failed to prove beyond reasonable doubt that Garcia violated the court order.
- The case highlights need for transparency and full disclosure of banking records to ensure justice and accountability for all parties.
- A formal complaint was filed against Canadian judges alleging misconduct and cover-up in the long-running Itaipú pension fund case.
Impact - Why it Matters
This ruling matters because it exposes potential misuse of the Canadian legal system to pursue a long-standing dispute that may have been used to justify pension reforms harming workers and consumers in Paraguay. The failure to recover alleged funds after 15 years and C$30 million in legal costs raises questions about the litigation's true purpose and the transparency of Itaipú's pension fund management.
Summary
The Ontario Superior Court of Justice has delivered a significant blow to the long-running legal battle initiated by the Itaipú pension fund (Cajubi) against Eduardo García. On May 5, 2026, Justice Osborne dismissed Cajubi's third consecutive contempt motion, ruling that the evidence did not prove beyond a reasonable doubt that García was in contempt of a previous court order. The motion sought to hold García in contempt for publicly stating that he never received, managed, or controlled the alleged C$20.8 million at issue, never made payments to former Cajubi directors, and possesses no hidden assets. Cajubi failed to prove these statements false or defamatory.
This marks another setback after two earlier failed motions in October 2023 and December 2024. Over 15 years of litigation, Cajubi has claimed the proceedings would recover substantial sums linked to García, but according to defense representatives, no such assets have been identified or recovered despite approximately C$30 million reportedly spent on legal fees. The case has drawn renewed scrutiny over unanswered questions about the funds' final destination and missing banking records, including Swiss accounts at Clariden Leu, now owned by Credit Suisse. Representatives supporting García argue that the Ontario proceedings were used to sustain a misleading public narrative in Paraguay while critical evidence was not pursued through discovery.
The controversy extends beyond the litigation, with critics alleging the lawsuit was part of a broader effort to justify controversial changes to Itaipú's pension system, including imposing a Chilean-style model that increased costs for workers, retirees, and Paraguayan electricity consumers. A formal complaint has been filed with the Canadian Judicial Council against judges involved, alleging misconduct, and additional complaints are expected before Paraguayan regulators. The case number is CV-11-00009210-CL. For more information, contact Julio Benítez via the Email Contact.
Source Statement
This curated news summary relied on content disributed by Newsworthy.ai. Read the original source here, Ontario Court Dismisses Another Contempt Motion in Itaipú Pension Fund Case
