Paraguay Senate votes to remove President Santiago Peña from office following Ueno bank collapse
The unanimous vote clears the way for Vice President Pedro Alliana to take over as prosecutors investigate bank-linked misconduct and public funds losses.
- 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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The President of Paraguay, Santiago Peña, has been suspended by a decision of the Senate: all 44 senators voted in favour of impeachment, reports the Associated Press on Saturday.
Paraguay’s Senate removes Santiago Peña, who is placed under arrest, and Pedro Alliana takes office
Paraguay’s Senate on Friday removed President Santiago Peña from office in an impeachment trial for “poor performance of his duties” over the collapse of Ueno Bank, and hours later prosecutors ordered him placed under house arrest over alleged economic crimes. Vice President Pedro Alliana was sworn in before Congress that night as the new head of state and will serve out the term until August 15, 2028.
The Paraguayan Public Prosecutor's Office has issued a detention order for former President Santiago Peña, who must remain under house arrest in his home. The measure is part of criminal case No. 92/2026, related to the financial crisis surrounding Ueno Bank and alleged breach of trust. The Fiscal Service has sent a note No. 97 to the National Police Command, instructing it to execute the order. The document states that Peña must remain detained…
In his speech, Alliana left several direct messages to Peña. He said that he will work for Paraguay “from the inside,” an indirect to Peña’s constant trips abroad, and also mentioned that he will fight corruption and seek a transparent management that will regain the confidence of Paraguayans.
The dismissal of Santiago Peña sparked scenes of celebration in the streets of Paraguay. After days of protests and growing citizen pressure over the Ueno Bank crisis, protesters took to the streets to demand a political trial of the now former president. The Senate found him guilty of "misperformance" and removed him from office. The report is from our correspondent Flavia Borja
Paraguay president ousted and placed under house arrest, successor sworn in
Santiago Peña was ousted from the presidency about an hour beforehand in a unanimous Senate vote, with lawmakers citing questions over his past links to the collapsed digital bank ueno that had provided accounts for nearly half of Paraguay's population.
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