Paraguay's Ousted President Charged with Crimes Linked to Collapse of Major Bank
Prosecutors say he steered public funds to the bank while regulators seized it and froze nearly 3 million customer accounts.
- Paraguayan prosecutors formally charged ousted former President Santiago Peña with breach of trust and administration for personal gain, following his unanimous impeachment and removal from office by Congress.
- The criminal charges stem from an escalating financial scandal surrounding the sudden collapse and regulatory seizure of Ueno Bank, a major digital lender whose failure froze accounts for nearly three million customers.
- Investigators allege Peña leveraged his political influence to direct substantial public funds—including social security assets—into the institution while regulators allegedly overlooked high-risk insider lending practices tied to the bank's owners.
- Following the charges, a federal judge ordered Peña held under preventive detention at a military base while assets tied to the former head of state were frozen pending further anti-corruption proceedings.
- Defense counsel rejected the accusations as politically motivated and vowed to fight the allegations, even as Vice President Pedro Alliana was swiftly sworn into office to complete the remainder of the presidential term.
146 Articles
146 Articles
The collapse of the digital bank Ueno has plunged Paraguay into a deep political and financial crisis. Not only have the assets of nearly half the population been frozen, but the political leadership also collapsed within a few days. The bank failure led to the resignation, impeachment, and house arrest of President Santiago Peña.
Asunción. The Paraguayan prosecutor's office yesterday impeached former President Santiago Peña, and applied for pretrial detention for his alleged responsibility in the banking crisis that affected half of the population, and that led to his dismissal amid massive protests by the account holders of the bankrupt Ueno Bank. Prosecutors advanced that, if convicted, he could face up to 20 years in prison for both crimes.
Paraguay’s ousted president ordered detained over bank collapse as financial crisis deepens
ASUNCION — A Paraguayan court ordered the preventive detention of ousted President Santiago Pena on Saturday after prosecutors filed criminal charges against him in connection with the collapse of Ueno Bank, which has frozen the deposits of nearly half the country’s population.Judge Humberto Otazu ruled that Pena must remain in custody at the Presidential Escort Regiment headquarters in the capital, Asuncion.The decision came hours after the Pro…
Paraguay president impeached over banking crisis
ALBAWABA - Paraguayan (now ex-President) Santiago Pena was charged by prosecutors and taken into custody on Saturday after a popular bank he had ties with collapsed leaving millions of Paraguayans unable to access their money...
The Paraguayan Public Prosecutor ' s Office has brought charges of corruption against the isolated President Santiago Peña, who was placed in custody against the background of the banking crisis.
First Santiago Peña loses his presidency, now he has to be detained. The judiciary accuses him of serious legal violations in connection with a banking scandal. The judge fears the danger of escape.
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