Paraguayan president removed by Senate and placed under house arrest
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The Senate voted to impeach President Santiago Peña over the collapse of Ueno Bank, and he was ordered to remain under house arrest pending prosecution.
Paraguayan President Santiago Peña was placed under house arrest on Friday after the Senate voted to remove him from office for misconduct linked to the collapse of government-linked Ueno Bank. The 44 senators present approved the impeachment, citing breach of trust, influence peddling and the use of public office for personal gain, charges that carry up to ten years in prison. Peña was ordered to stay at a residence in Asunción until he appears before prosecutors on Saturday.
Police secured the house as crowds gathered outside, waving flags and demanding that he not flee. Prosecutors also sought the arrest of Carlos Carvallo, former head of the finance company that became Ueno and later appointed central bank chief in 2023, though his custody status was not immediately known.
Vice-President Pedro Alliana was sworn in as president to complete the term ending in August 2028. Alliana, who is also under investigation related to the bank’s failure, said, "The Paraguay we receive today has urgent needs," and noted the new administration must work to return depositors’ money and hold responsible parties accountable.
In a farewell message before the Senate verdict, Peña said he did not want his presence to cause further division, adding, "I say goodbye with gratitude, without ignoring the anguish of those who are waiting for answers today."
Public anger has intensified, with demonstrators chanting for the return of frozen savings and demanding accountability. Yinal López, a state electricity company employee, described the episode as an "enormous betrayal of trust."
Analysts linked Peña’s downfall to his relationship with former president Horacio Cartes, who had previously supported his rise. Miguel Carter, director of the DEMOS research centre, said, "It's like a Shakespearean drama. He tried to displace his mentor, his political patron, but he did so on very fragile grounds." Andrew Nickson, a Paraguay expert at the University of Birmingham, added, "Cartes put the nail in the coffin. Peña had no political base to rely on, and he was left high and dry."