Exclusive – Why Did Paraguay Designate Hezbollah as Terrorist?

Hezbollah members carry flags during the funeral of a fellow fighter. (Reuters)
Hezbollah members carry flags during the funeral of a fellow fighter. (Reuters)
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Exclusive – Why Did Paraguay Designate Hezbollah as Terrorist?

Hezbollah members carry flags during the funeral of a fellow fighter. (Reuters)
Hezbollah members carry flags during the funeral of a fellow fighter. (Reuters)

Paraguay designate Hezbollah as a terrorist organization less than a month after Argentina became the first South American country to blacklist the Iran-backed group. Paraguay made its move after authorities gathered enough evidence that confirmed the armed party’s close ties with criminal organizations that are active in its shared border region with Brazil and Argentina. The area is a hub for drug smuggling, money-laundering and human-trafficking.

Hezbollah’s operations in Latin America are a cause for mounting concern in the continent, which will likely mean that more countries will follow in Paraguay and Argentina’s lead and blacklist the party.

Are these developments connected to the ongoing clash between the United States and Iran? Most definitely so.

Tehran is the vital connection for funding all of its proxy terrorist groups, starting with Hezbollah. The party’s secretary general even admitted that the members receive all of their salaries directly from Iran. The renewed sanctions on Tehran have, however, impacted the party, forcing it to set up boxes for donations in Lebanon in order to compensate from the drop in financing. This has led to insignificant results, forcing party members to consider the illicit activity in South America as a possible replacement for Iran’s funds.

The party’s actions have not evaded US attention and many officials in Washington have started to demand that Hezbollah be uprooted from South America given its close proximity to US soil.

Republican Senator Ted Cruz had in July addressed a letter to US Secretary of State Mike Pompeo to underscore Hezbollah’s growing threat in South America. "We must recommit to ensuring that Hezbollah and other Iranian proxies are denied the resources they need to escalate their campaign of global terrorism,” he said on the occasion of the 25th anniversary of Hezbollah’s bombing of the Jewish community center in Argentina. The attack left 85 people dead and 200 wounded.

Cruz’ remarks highlight the major and dangerous project Iran is pursuing through Hezbollah in spreading Shiism in South America. Instilling dogmatic beliefs will pave the way to a future generation that is hostile to the US and that will fuel a major terrorist war against it. Washington has started to realize this threat.

How has Hezbollah, as an Iranian terrorist proxy, managed to reach Latin America?

This did not take place overnight. It began at the end of the Iranian-Iraqi war when Tehran saw in the huge Arab diaspora in South America a fertile ground to recruit agents who will further its revolution and propagate its terrorism. Hezbollah managed to deepen its ties with several populist governments in South America, especially Venezuela with which Iran enjoyed good relations under the rule of late President Hugo Chavez. He believed that the best way to spite the US was to bolster ties with Iran. He therefore, greatly facilitated Hezbollah’s operations in Venezuela and from there, the rest of the continent.

Its spread in South America was made easy by weak governments and border security, as well as rampant corruption.

Matthew Levitt, director of the Stein Program on Counterterrorism and Intelligence at the Washington Institute for Near East Policy, warned of Hezbollah’s drug trade, saying it would soon be able to reap more funds from it than from any other source.

Moreover, he warned of Hezbollah sleeper cells that are waiting for the signal to strike inside the US itself.

The noose is, however, tightening around Hezbollah in Latin America. Brazil, whose President Jair Bolsonaro boasts very good relations with his American counterpart Donald Trump, may very soon designate Hezbollah as terrorist. The US Congress had recently spoken of the party’s strong support in Brazil, where some 7 million people trace their roots back to Lebanon. One million of those people are Shiites who share Hezbollah’s ideology. Most alarming of all is that the party believes that it can exploit these people to infiltrate any Brazilian government or security agency.

Brazil’s general prosecution also found evidence that ties Hezbollah to two notorious criminal organizations, the Primeiro Comando da Capital and Comando Vermelho.



Reconstruction Studies Begin in Lebanon, Costs Exceed $6 Billion

A man walks past near the rubble of a building in Beirut's southern suburbs, after the ceasefire between Israel and Hezbollah, Lebanon November 29, 2024. REUTERS/Thaier Al-Sudani
A man walks past near the rubble of a building in Beirut's southern suburbs, after the ceasefire between Israel and Hezbollah, Lebanon November 29, 2024. REUTERS/Thaier Al-Sudani
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Reconstruction Studies Begin in Lebanon, Costs Exceed $6 Billion

A man walks past near the rubble of a building in Beirut's southern suburbs, after the ceasefire between Israel and Hezbollah, Lebanon November 29, 2024. REUTERS/Thaier Al-Sudani
A man walks past near the rubble of a building in Beirut's southern suburbs, after the ceasefire between Israel and Hezbollah, Lebanon November 29, 2024. REUTERS/Thaier Al-Sudani

As Lebanese return to their ruined cities and villages after the ceasefire between Hezbollah and Israel, the main question on their minds is: “When will reconstruction begin, and are the funds available, and if so, where will they come from?”

Unlike the aftermath of the 2006 war, which saw funds flow in automatically, the situation now is different.

The international conditions for reconstruction may be tougher, and Lebanon, already struggling with a financial and economic collapse since 2019, will not be able to contribute any funds due to the severity of the recent war.

Former MP Ali Darwish, a close ally of Prime Minister Najib Mikati, said a plan for reconstruction would likely be ready within a week.

The plan will identify the committees to assess damage, the funds for compensation, and whether the South Lebanon Council and Higher Relief Commission will be involved.

Speaking to Asharq Al-Awsat, Darwish explained that the matter is being discussed with international partners, and more details will emerge soon.

He added that the process is unfolding in stages, beginning with the ceasefire, followed by army deployment, and eventually leading to reconstruction.

To reassure its supporters, many of whom have lost their homes and been displaced, Hezbollah promised before the ceasefire that funds were ready for reconstruction.

Sources close to the group say Iran has set aside $5 billion for the effort, with part of it already available to Hezbollah and the rest arriving soon.

Political analyst Dr. Qassem Qassir, familiar with Hezbollah’s operations, said a reconstruction fund would be created, involving Iran, Arab and Islamic countries, international partners, religious leaders, and Lebanese officials.

He added that preparatory work, including committee formations and studies, has already begun.

However, many affected people are hesitant to start rebuilding, wanting to ensure they will be reimbursed.

Some reports suggest that party-affiliated groups advised not making repairs until damage is properly documented by the relevant committees. Citizens were told to keep invoices so that those who can pay upfront will be reimbursed later.

Ahmad M, 40, from Tyre, told Asharq Al-Awsat he began repairing his damaged home, paying extra to speed up the process. The high costs of staying in a Beirut hotel have become unbearable, and he can no longer wait.

Economist Dr. Mahmoud Jebaii says that accurate estimates of reconstruction costs will depend on specialized committees assessing the damage. He estimates the cost of destruction at $6 billion and economic losses at $7 billion, bringing total losses from the 2024 war to around $13 billion, compared to $9 billion in 2006.

Speaking to Asharq Al-Awsat, Jebaii explained that the 2024 destruction is much greater due to wider military operations across the south, Bekaa, and Beirut.

About 110,000 housing units were damaged, with 40,000 to 50,000 completely destroyed and 60,000 severely damaged. Additionally, 30 to 40 front-line villages were entirely destroyed.

Jebaii emphasized that Lebanon must create a clear plan for engaging the Arab and international communities, who prefer reconstruction to be managed through them.

This could involve an international conference followed by the creation of a committee to assess the damage and confirm the figures, after which financial support would be provided.

He added that Lebanon’s political system and ability to implement international decisions will be key to advancing reconstruction.