On May 5, 2026, Justice Osborne of the Ontario Superior Court of Justice dismissed the latest contempt motion filed by the pension fund of Itaipú Binacional (Cajubi) against Eduardo García. This marks the third consecutive failed motion by Cajubi before the same judge since 2023, dealing a significant blow to the long-running civil proceedings.
Justice Osborne ruled: '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 Mr. García in contempt for publicly maintaining that he never received, managed, or controlled the alleged C$20.8 million, never made payments to former Cajubi directors, and possesses no hidden assets. Cajubi failed to prove 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, Cajubi has repeatedly claimed publicly that the Canadian proceedings would recover substantial sums allegedly linked to Mr. García. However, according to the defense, no such assets were ever identified or recovered despite more than 15 years of litigation and approximately C$30 million reportedly spent 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.
Representatives supporting Mr. García stated: 'This matter can only be clarified through full disclosure of the banking and financial records tied to the transactions at issue. 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 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.
