ASUNCIÓN, Paraguay (AP) — The Biden administration on Tuesday imposed sanctions on a Paraguayan tobacco company for allegedly enriching the country's controversial former president, a cigarette tycoon sanctioned last year by the White House for corruption.
The U.S. Treasury Department said it was targeting cigarette producer Tabacalera del Este over its links to Horacio Cartes, one of the Paraguay’s richest men who served as president from 2013 to 2018 and still wields significant political power in the country. Paraguay's current president, Santiago Peña, is a political protégé of Cartes who also hails from the dominant conservative Colorado party.
Citing a “concerted pattern of corruption," the Treasury Department last year sanctioned Cartes over accusations that he had paid millions of dollars in bribes to lawmakers to pave his way to power and that he had cultivated ties to Lebanon's Hezbollah militant group, which is believed to operate in the porous Triple Frontier where Argentina, Brazil and Paraguay meet.
At the time, the Treasury also designated four companies controlled by Cartes that spanned the Paraguayan economy's main sectors, including cattle ranching, tobacco and consumer goods.
Cartes has dismissed the corruption allegations as politically motivated. There was no immediate response from the Tabacalera del Este tobacco company. The phone numbers on the company website were disconnected.
Cartes says he no longer owns nor is actively involved in the management of Tabacalera del Este, a company that has roused competitors' suspicions that smuggling was occurring given its massive volume of cigarette sales.
Nonetheless, the Treasury Department on Tuesday accused Tabacalera del Este of funneling millions of dollars to Cartes “pursuant to a sales agreement.” The department's Office of Foreign Assets Control last year identified Cartes as owning a 50% or greater interest in the company, directly or indirectly.
“The United States remains dedicated to ensuring accountability for Cartes and to promoting meaningful anti-corruption reform in Paraguay,” said State Department spokesperson Matthew Miller.
Cartes currently faces no criminal charges in Paraguay and was elected last year as president of the Colorado party, which controls the majority of seats in both houses of Congress.
Controversy — and U.S. law enforcement inquiries — have followed the politician throughout his career as the country's leading businessman. Currency fraud allegations sent him to jail for a few months early in 1986. All charges were later dropped.
Last year Paraguay’s attorney general launched a criminal investigation into the U.S. Treasury's corruption allegations about Cortes, but there have been no results.
The State Department has said deep-rooted corruption in Paraguay often prevents convictions in money-laundering and terrorism financing cases.
Although last month Moody’s ratings agency lifted Paraguay to investment-grade status, citing the nation's strong economic growth, analysts and investors have expressed concerns about endemic organized crime fueled by cigarette and drug smuggling.
FILE - Former President Horacio Cartes covers himself with a flag of the ruling, Colorado party after the polls closed during the general election in Asuncion, Paraguay, April 30, 2023. The Biden administration on Tuesday, Aug. 6, 2024, slapped sanctions on a Paraguayan tobacco company for financing Cartes, a cigarette tycoon whom the White House sanctioned in 2023 for corruption. (AP Photo/Jorge Saenz, File)
Among the last words heard from the crew of an experimental submersible headed for the wreck of the Titanic were “all good here,” according to a visual re-creation of the journey of the Titan before it imploded, killing all five on board.
The U.S. Coast Guard presented the animation Monday on the first day of what is expected to be a two-week hearing on the causes of the implosion. Crew aboard the Titan were communicating via text messages with staff aboard the support ship Polar Prince, according to the presentation.
The crew lost contact after an exchange of texts about the submersible's depth and weight as it descended. The Polar Prince then sent repeated messages asking if the Titan could still see the ship on its onboard display. One of Titan’s final responses, which became spotty as it descended, was “all good here.”
The Titan imploded on June 18, 2023, setting off a worldwide debate about the future of private undersea exploration.
The Titan was left exposed to the elements while in storage for seven months in 2022 and 2023, Coast Guard representatives said in their initial remarks Monday. The hull was also never reviewed by any third parties as is standard procedure, they said. That and the submersible's unconventional design subjected the Titan to scrutiny in the undersea exploration community.
The hearing’s first witness, OceanGate’s former engineering director, Tony Nissen, testified Monday that the Titan was struck by lightning during a test mission in 2018, and that might have compromised its hull. Nissen said he was fired in 2019 when he wouldn’t let the submersible go to the Titanic, and he told Rush the submersible was “not working like we thought it would.”
Nissen said the submersible later went through other tests and adjustments before its subsequent dives to the Titanic. However, he testified that he was asked to pilot the submersible and replied: “I’m not getting in it.”
Nissen added that Rush could be difficult to work for and was often very concerned with costs and project schedules, among other issues. He said Rush would fight for what he wanted, which often changed day to day. He added that he tried to keep his clashes with Rush behind closed doors so that others in the company wouldn’t be aware.
“Most people would eventually just back down to Stockton,” he said.
The ongoing Marine Board of Investigation is the highest level of marine casualty investigation conducted by the Coast Guard. When the hearing concludes, recommendations will be submitted to the Coast Guard's commandant. The National Transportation Safety Board is also conducting an investigation.
“There are no words to ease the loss endured by the families impacted by this tragic incident,” said Jason Neubauer of the Coast Guard Office of Investigations, who led the hearing. “But we hope that this hearing will help shed light on the cause of the tragedy and prevent anything like this from happening again.”
Among those killed was Stockton Rush, co-founder of OceanGate, the Washington state company that owned the Titan. The company suspended operations after the implosion.
Also scheduled to speak were the company's former finance director, Bonnie Carl; and former contractor Tym Catterson.
Some key OceanGate representatives are not scheduled to testify. They include Rush's widow, Wendy Rush, who was the company's communications director.
The Coast Guard does not comment on the reasons for not calling specific individuals to a particular hearing during ongoing investigations, said Melissa Leake, a spokesperson for the Coast Guard. She added that it's common for a Marine Board of Investigation to “hold multiple hearing sessions or conduct additional witness depositions for complex cases.”
Scheduled to appear later in the hearing are OceanGate co-founder Guillermo Sohnlein; former operations director, David Lochridge; and former scientific director, Steven Ross, according to a list compiled by the Coast Guard. Numerous guard officials, scientists, and government and industry officials are also expected to testify. The U.S. Coast Guard subpoenaed witnesses who were not government employees, Leake said.
OceanGate has no full-time employees at this time but will be represented by an attorney during the hearing, the company said in a statement. The company has been fully cooperating with the Coast Guard and National Transportation Safety Board investigations since they began, the statement said.
The implosion also killed veteran Titanic explorer Paul-Henri Nargeolet; two members of a prominent Pakistani family, Shahzada Dawood and his 19-year-old son Suleman Dawood; and British adventurer Hamish Harding.
The Titan lost contact with its support vessel about two hours after it made its final dive later. When it was reported overdue, rescuers rushed ships, planes and other equipment to an area about 435 miles (700 kilometers) south of St. John’s, Newfoundland.
The search for the submersible attracted worldwide attention, as it became increasingly unlikely that anyone could have survived the implosion. Wreckage of the Titan was subsequently found on the ocean floor about 330 yards (300 meters) off the bow of the Titanic, Coast Guard officials said.
The time frame for the investigation was initially a year, but the inquiry has taken longer. The Coast Guard said in July that the hearing would delve into “all aspects of the loss of the Titan,” including both mechanical considerations as well as compliance with regulations and crewmember qualifications.
This story has been edited to clarify that “all good here” was one of the last things heard from the submersible, not necessarily the very last thing heard.
Coast Guard's Thomas Whalen, left, speaks with Nicole Emmons, right, during a break for the Titan marine board formal hearing inside the Charleston County Council Chambers, Monday, Sept. 16, 2024, in North Charleston, S.C. (AP Photo/Mic Smith)
Coast Guard's Thomas Whalen speaks with another Coast Guard member during a break for the Titan marine board formal hearing inside the Charleston County Council Chambers, Monday, Sept. 16, 2024, in North Charleston, S.C. (AP Photo/Mic Smith)
Jason Neubauer, board chairman, of the investigative board for the Titan marine board formal hearing pauses for a moment of silence inside the Charleston County Council Chambers Monday, Sept. 16, 2024, in North Charleston, S.C. (AP Photo/Mic Smith)
Coast Guard members of the investigative board for the Titan marine board formal hearing pause for a moment of silence inside the Charleston County Council Chambers Monday, Sept. 16, 2024, in North Charleston, S.C. (AP Photo/Mic Smith)
Coast Guard members of the investigative board for the Titan marine board formal hearing take an oath inside the Charleston County Council Chambers Monday, Sept. 16, 2024, in North Charleston, S.C. (AP Photo/Mic Smith)
FILE - This undated image provided by OceanGate Expeditions in June 2021 shows the company's Titan submersible. (OceanGate Expeditions via AP, File)
