The Ontario Superior Court of Justice has dismissed the latest contempt motion filed by the pension fund of the Paraguayan-Brazilian state-owned entity Itaipú Binacional, known as Cajubi, against Eduardo García. The ruling, issued on May 5, 2026, by Justice Osborne, marks the third failed motion by Cajubi in as many attempts since 2023.
Justice Osborne ruled that he could not conclude beyond a reasonable doubt that García was in contempt of a previous court order, 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 hold García in contempt for publicly maintaining 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 or funds in any jurisdiction. Cajubi failed to prove that these statements were false or defamatory.
This dismissal follows two earlier failed motions dismissed by Justice Osborne on October 31, 2023, and December 4, 2024. In those proceedings, Cajubi similarly sought contempt findings related to alleged accounting records and asset disclosures. Over the course of the litigation, which has spanned more than 15 years, Cajubi has repeatedly claimed publicly that the Canadian proceedings would recover substantial sums allegedly linked to García. However, according to the defense, no such assets were ever identified or recovered despite reportedly spending approximately C$30 million on legal fees.
The case faces renewed scrutiny due to unanswered questions about the funds' final destination and missing banking records, including Swiss accounts once held at Clariden Leu, now owned by Credit Suisse. According to representatives supporting García, 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," representatives 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 pension-related costs borne by 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.
