Paraguay Senate votes to remove President Santiago Peña from office following Ueno bank collapse
Lawmakers said Peña used his influence to steer hundreds of millions of dollars in public funds into Ueno while regulators overlooked risky lending.
- On Friday, Paraguay's Senate unanimously voted to remove President Santiago Peña for misconduct over Ueno Bank's collapse. Vice President Pedro Alliana was immediately sworn in to lead the country.
- Regulators seized Ueno Bank on Tuesday, freezing nearly 3 million customer accounts and triggering nationwide protests. Lawmakers accused Peña of steering $355 million in state pension funds to the lender while regulators overlooked risky insider lending.
- Prosecutors charged 27 people, including Ueno's controlling shareholder Miguel Vázquez, with breach of trust and placed Peña under house arrest on Friday. Former central bank chief Carlos Carvallo also faced arrest orders.
- President Alliana inherited a government under pressure to return depositors' money and punish those responsible. Paraguay's largest teachers' union, representing more than 40,000 members, plans an indefinite national strike on Monday to demand pension fund protection.
- Peña lost his political base after mentor Horacio Cartes publicly called for his ouster, marking a stunning reversal of fortunes. Unlike other former presidents, Peña will not receive a lifetime Senate seat or parliamentary immunity, leaving him vulnerable to prosecution.
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Paraguay’s president removed over financial crisis
Santiago Peña, the president of Paraguay, was impeached and removed from office Friday, just days after the collapse of a major bank in the South American nation that has left millions without access to their savings. Peña is under criminal investigation over his relationship to the bank and his handling of the crisis.
Paraguay's President Santiago Peña has been ousted and placed under house arrest after a massive banking scandal that has left millions of citizens without access to their money.
Ueno Bank scandal precipitates president's downfall amid frozen savings, protests and corruption allegations
Buenos Aires., The president of Paraguay, Santiago Peña, was placed under house arrest yesterday under suspicion of abuse of confidence and trading in influence, shortly after the Senate removed him unanimously, after the collapse of a bank linked to his government, which left 3 million people without access to their savings. Moments later, the vice president, Pedro Alliana, assumed the head of the executive, to govern until August 2028.
Paraguay's Senate has formally removed President Santiago Pena from office after a constitutional impeachment, after he announced his resignation a few days ago over a banking scandal. Immediately after the removal, police arrested him and placed him under house arrest. Vice President Pedro Alliana has already been sworn in as the country's new president, foreign news agencies report.
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