Paraguayan judge orders former president Santiago Peña into pretrial detention

A Paraguayan judge ordered former President Santiago Peña to be held in pretrial detention at a military facility as prosecutors investigate his alleged connections to digital lender ueno, whose collapse has left millions of customers unable to access their accounts. Judge Humberto Otazú said the detention was needed to ensure Peña remains in the country while the case proceeds. Peña faces charges of breach of trust and administration for personal gain, offenses that could each carry up to ten years in prison, according to prosecutor Nancy Salomón.

Peña’s lawyer, Ricardo Preda, told reporters that his client is pleading not guilty and expects the investigation to end in dismissal. The judge also ordered former central-bank chief Carlos Carvallo into pretrial detention on similar charges, including producing false public documents. Carvallo did not comment.

Prosecutors allege that Peña used his presidential authority to influence government agencies and state-owned entities to keep large public deposits at ueno, creating a conflict of interest. Peña, who held shares in ueno’s parent company until March 2025, denies wrongdoing and attributes the lender’s problems to regulatory issues.

Peña appeared before prosecutors on Saturday after being removed from office on Friday, an action that elevated Vice President Pedro Alliana to the presidency for the remainder of the term ending in August 2028. The central bank reported that about $160 million has been paid to roughly 1.2 million savers under the state deposit guarantee scheme.