SAO PAULO, April 1, (AP): Brazil's government said on Monday that its intelligence agency spied on Paraguayan authorities during the presidency of Jair Bolsonaro, the predecessor of incumbent Luiz Inácio Lula da Silva, a move that stopped in March 2023, three months into Lula's administration. The statement from Brazil's foreign ministry came hours after a report by news website UOL accused Lula's administration of spying on Paraguay.

The ministry did not detail the specific Paraguayan officials targeted but said the surveillance stopped "as soon as the current administration became aware of the fact.” "President Lula’s administration categorically denies any involvement in the intelligence action reported today against Paraguay, a member country of (trade bloc) Mercosur with which Brazil maintains historical relations and a close partnership,” Brazil's foreign ministry said.

Paraguay's Foreign Minister Rubén Ramírez Lezcano told journalists in Asuncion earlier on Monday that he has "no evidence that Brazil has attacked our system.” Bolsonaro did not make comments about the case. The ministry also said the current director-general of its intelligence agency was waiting for Senate confirmation early in 2023, when the espionage was still active. According to the UOL news report, Brazilian intelligence agents infiltrated Paraguayan computer systems to obtain information regarding tariff negotiations related to the Itaipu hydroelectric dam, one of the world’s largest.

Brazil and Paraguay share the rights of the energy generated at the Itaipu dam, which has an installed capacity of 14,000 megawatts. Brazil buys much of the energy that Paraguay sells, which has led to tense negotiations in recent years. Bolsonaro currently faces trial by Brazil's Supreme Court on five counts, including attempting to stage a coup after the far-right leader lost the 2022 election. He faces pending rulings in other cases before the country's top court.