Paraguayan President Santiago Peña Impeached and Arrested Amid Banking Collapse
Paraguayan lawmakers voted to remove President Santiago Peña from office and he was arrested following the failure of Ueno Bank, which left millions of depositors unable to access their funds.
Paraguayan President Santiago Peña was taken into custody on Friday after the Senate voted 44-1 to impeach him for alleged misconduct linked to the collapse of Ueno Bank. The impeachment stripped him of his lifetime Senate seat and the immunity granted to former presidents. Peña, who previously owned shares in the bank’s parent company, denied any wrongdoing and expressed regret in a televised address, saying he never intended to betray public trust.
The digital bank’s failure has reportedly left more than half of Paraguay’s population, about three million people, without access to their savings and pensions, sparking protests in the capital, Asunción. Prosecutor Silvia Margarita Gonzalez Vester said Peña will be questioned on charges of breach of trust, influence peddling and misappropriation of funds.
Alliana, who will serve as interim president until 2028, pledged that citizens affected by the financial collapse will be fully compensated. Senator Rafael Filizzola described the case as the biggest corruption scandal in the country’s democratic history, warning of damage to the state’s credibility and image. Analysts expect Peña to face prosecution over the bank’s collapse.