Former Central Bank of Paraguay President Surrenders Following Ueno Bank Closure
Carlos Carvallo, former head of the BCP, presented himself to the National Police in Asunción after a detention order was issued against him. The scandal also resulted in the removal of former president Santiago Peña.
Carvallo Surrenders to Justice Amid Ueno Bank Scandal
Carlos Carvallo, former president of the Central Bank of Paraguay (BCP), turned himself in to the authorities on Friday night in Asunción, according to local media reports that circulated photographs of the moment. Carvallo went to the Investigations Department of the National Police after learning of the detention order issued against him.
According to reporting by the newspaper ABC Color and picked up by El Deber, Carvallo appeared in the same detention order issued against now former president Santiago Peña, as part of proceedings for breach of trust and other offences alleged against former officials linked to the closure of Ueno Bank.
After appearing before the courts, Carvallo was transferred to the Specialised Unit, a police facility that functions as a detention centre in Asunción.
Peña's Removal and Detention at His Residence
Hours before Carvallo's surrender, the Senate found Santiago Peña guilty of "misconduct in office" in an impeachment trial, which resulted in his removal as President of the Republic. Peña was detained at his residence and subsequently transferred to the headquarters of the Presidential Escort Regiment, in the presence of numerous people gathered in the surroundings of the home.
The local newspaper Última Hora, citing official sources, indicated that the former president would remain in that location "as a preventative measure" before being taken on Saturday to the Specialised Unit for Economic and Anti-Corruption Offences of the Public Prosecutor's Office for his first appearance.
Carvallo's Link to the Intervened Financial Institution
Before taking on the presidency of the BCP in 2023, Carvallo had directed Ueno Finance, an entity that was the origin of the bank currently under intervention. He resigned from the post on Tuesday, days after the process of resolution or dissolution of Ueno Bank was announced, an institution that received millions of funds from state entities during Peña's administration.
To fill the vacancy, Peña appointed on Wednesday economist and former minister Raúl Vera Bogado as the new head of the BCP, an appointment that still must be approved by the Senate.
Prosecutor's Office Charges 27 People
The Prosecutor's Office has charged 27 people in relation to this case. Among those charged is Miguel Vásquez, one of the founders of Ueno Bank, who on Friday was transferred to a detention centre along with six other detainees, in compliance with a preventative detention measure ordered by a judge.
The scandal surrounding the closure of Ueno Bank has become the most far-reaching political and institutional crisis in Paraguay in recent years, with direct consequences for the highest levels of government and the financial system.
Source: El Deber