Former president Santiago Peña arrested in Paraguay following removal over Ueno Bank scandal
Paraguay's Senate removed Santiago Peña by a vote of 44 as the Ueno Bank collapsed. The Prosecutor's Office ordered his house arrest minutes later.
Peña under house arrest following political trial in the Senate
Paraguay's Senate removed president Santiago Peña on Friday, 6 November through a political trial linked to the Ueno Bank scandal, one of the country's largest banks, whose intervention left approximately three million customers without access to their deposits. The vote was 44 in favour and one absence, out of a total of 45 senators, according to semana.com.
Just 20 minutes after removal was approved, Paraguay's Prosecutor's Office issued an arrest order against the now former president and against Carlos Carvallo, former president of the Central Bank of Paraguay, as part of the criminal case for alleged breach of trust and other matters related to the Ueno Bank case.
Police and prosecutors enter Peña's residence
Officers from the National Police were stationed in front of Peña's residence whilst vice president Pedro Alliana was sworn in as new head of state. Police commanders entered the former president's home, accompanied by prosecutors.
Prosecutor Silvia Margarita González Vester confirmed from outside the residence that Peña was in his home. "He permitted voluntary entry to his residence and made himself available for all procedural purposes," the official stated. "He will remain in custody at his home, and the fiscal order has been executed," she added.
Prosecutor Cristian Benítez specified that it will be a criminal judge of guarantees who will determine the definitive place of detention. For the time being, Peña will remain detained at his house until he gives statements to the Specialised Unit for Economic and Anti-Corruption Crimes, scheduled for Saturday, 7 October at 11:00 a.m.
Paraguay's ABC newspaper confirmed live, through one of its journalists on the scene, the entry of officers and prosecutors to the former president's residence.
Alliana assumes the presidency and promises to compensate savers
Pedro Alliana was sworn in as president of Paraguay following Peña's fall and promised to fully compensate the savers affected by the banking crisis. Some of the three million Ueno Bank customers had begun to recover part of their deposits gradually before Friday's proceedings.
The removal occurred three days after the intervention of the Ueno Bank, an entity with which Peña maintained links. The fiscal arrest order establishes that Peña must "remain in custody at his residence, until he is placed at the disposal of the Public Ministry". For Carvallo, the National Police will determine the facility where he will be held.
Source: Google News CL — Santiago