Former Paraguayan President Santiago Peña appears before Prosecution in Ueno Bank case
The former president, removed through impeachment, was detained and questioned for alleged breach of trust linked to the bank's collapse. Pedro Alliana assumed the presidency.
Santiago Peña appears before Paraguay's Prosecution following his removal
Former Paraguayan President Santiago Peña presented himself on Saturday before the General Prosecution of the State in Asunción, hours after his detention as part of an investigation into alleged breach of trust related to the collapse of Ueno Bank, according to El Deber. The former president arrived at the Public Ministry headquarters in a black vehicle with a reduced police escort.
The location of the appearance, initially scheduled at the Specialist Unit for Economic Crimes and Anti-Corruption, was moved for "security reasons". Peña was not handcuffed, according to images released by local media.
Night at the Presidential Guard Regiment
The former president spent the night at the Presidential Guard Regiment. The transfer from his private residence took place amid the presence of numerous people in the surrounding area who shouted slogans against him.
On Friday, the Paraguayan Senate found him guilty of "poor performance of duties" in an impeachment trial, amid the crisis unleashed by the closure of Ueno Bank, an entity with 2.94 million customers. Among those customers are state institutions whose funds were frozen following the bank's solvency problems. Shortly after the verdict, an arrest warrant was issued and executed at the former president's residence by a joint team from the Police and the Prosecution.
Link with Ueno Bank and shareholding
According to the accusations of deputies who promoted the impeachment trial, Peña was a shareholder of Ueno Holding, a conglomerate of the Vásquez Group that controlled, among other companies, Ueno Bank. In March 2025 he sold that stake.
During his presidential term, millions in public funds were invested in the banking entity, now in the process of liquidation.
Detention of former Central Bank president
Along with Peña, the Prosecution requested the detention of Carlos Carvallo, who headed Paraguay's Central Bank until last Tuesday, when he resigned amid Ueno's resolution procedure. Carvallo presented himself to the authorities on Friday evening and was arrested.
The former official had chaired Financiera Ueno, the predecessor to Ueno Bank, before taking over as head of the central bank in 2023. The board of that entity authorised, "83 days after" Carvallo's appointment as head, the creation of the bank now being liquidated.
Twenty-seven accused, including a bank founder
The Prosecution charged a total of 27 people linked to the case. Among them is Miguel Vásquez, one of the founders of Ueno Bank, who was transferred on Friday along with five other executives to penitentiary facilities for the accused.
Alliana assumes the presidency
Peña's removal triggered the constitutional line of succession. The then vice president Pedro Alliana took the oath on Friday in an extraordinary session of Congress and will assume the presidency until the end of the mandate in 2028.
Source: El Deber