Prosecutors raid presidential residence in Asunción over Ueno scandal
Paraguay's prosecutor's office raided the presidential residence as part of an investigation into the collapse of Ueno bank and the removal of former president Peña.
Investigation into Ueno bank: prosecutors raid presidential mansion in Asunción
Paraguay's prosecutor's office carried out a raid on the presidential residence in Asunción as part of a broader investigation into the collapse of Ueno bank, according to In.gr. The operation is linked to the removal and pre-trial detention of former president Santiago Peña, 47, on 6 November. The institution informed the French news agency accordingly.
This raid follows similar operations at other properties belonging to the former head of state. Peña faces charges of unlawful influence in exchange for consideration, with the aim of favouring Ueno — a bank that was initially exclusively digital and had been established only three years before its collapse.
In a statement, the prosecutor's office clarified that the raid forms "part of investigative measures" against the former president, who is suspected of "breach of trust" and of exercising his duties "for personal gain".
Arrests and seizures
In parallel, authorities announced the arrest of Holger Insfrán, head of the private banks department at Paraguay's central bank (BCP), during a raid on his home in the capital. Prosecutor Cristián Benítez told television network ABC that there is "evidence" suggesting "criminal conduct" by the official who was responsible for overseeing the country's financial institutions.
During an earlier raid on Peña's residence in Asunción on Monday, documents, mobile phones, computers and other devices were seized. During a raid on the former president's summer residence, a safe was found; Peña himself showed the investigators how to open it — it was empty.
Two parallel investigations
Paraguayan justice is conducting two parallel investigations. The first concerns the leadership of Ueno bank, ten of whom are already in pre-trial detention. The second is directed against the deposed president Peña and the former head of the BCP, Carlos Carballo, who is also in custody.
Banking crisis with millions of victims
The central bank placed Ueno under receivership and liquidation on 3 November due to serious solvency problems. The decision, announced overnight, froze deposits, credit and debit cards of millions of customers, triggering mass protests.
The BCP communications department told AFP that of the 1.8 million depositors affected, 1.5 million have recovered all their money. However, beyond small deposits, more than 70% of the funds placed in the bank remains missing — including over 800 million dollars belonging to the Paraguayan state, primarily in pension funds.
The Institute for Social Welfare, which manages pensions for nearly 1.5 million Paraguayans, had placed 516 million dollars in Ueno.
Outrage in the streets
"I am outraged by what happened, I feel anger, frustration," 24-year-old veterinarian Valentina Benítez told the French news agency as she took part in a demonstration of tens of thousands of young people in the centre of Asunción. Holding a placard with the phrase "theft is a crime only when the poor commit it", she described the new president Pedro Alliana — formerly vice-president — as "one of the same".
Institutional responses
The presidency issued a statement in which it assured that "the government under president Pedro Alliana guarantees full cooperation with justice and absolute respect for the independence of the prosecutor's office as well as the judicial authority" as part of the investigation.
The International Monetary Fund spokesperson Julie Kozack said there was no indication that the crisis has spread to other banks in Paraguay or neighbouring countries. "We note that the Paraguayan authorities took swift decisions," she stressed in a press conference, particularly regarding the coverage of guaranteed deposits.
The new head of the BCP, Jorge Shräiner, told journalists that he feels "calmer" after studying Ueno's portfolio, noting that the volume of the bank's transferable assets "exceeds the total amount of its debts to the welfare system".
Source: In.gr