Paraguay's President Peña impeached and arrested after Ueno Bank collapse freezes millions of accounts
Paraguay's President Santiago Peña has been impeached and placed under house arrest following the collapse of Ueno Bank. Over three million depositors remain unable to access their savings.
Paraguay president ousted and arrested as bank collapse leaves millions without savings
Paraguay's President Santiago Peña has been impeached and placed under house arrest after the collapse of Ueno Bank triggered a nationwide financial crisis, bbc.com reports. More than half of the country's population — roughly six million people — were left without access to their bank accounts following the bank's seizure by Paraguay's central bank.
Lawmakers voted unanimously on Friday to remove Peña from office, including members of his own party. Forty-four of the 45 senators present voted in favour of the impeachment; one was absent. Rather than accepting Peña's offer to resign, made the previous day, the senate proceeded with formal charges — a move that strips him of the immunity normally afforded to former presidents.
The impeachment charges alleged that Peña had conflicts of interest linked to Ueno Bank, manipulated regulatory oversight, diverted pension funds, and participated in an institutional cover-up involving the central bank. Until last year, Peña held shares in the company that owned the bank. He has denied any wrongdoing.
Prosecutor Silvia Margarita Gonzalez Vester said Peña is due to be questioned on Saturday over allegations of breach of trust, influence peddling, and misappropriation of funds. His defence lawyer Ricardo Preda dismissed the charges as a "reckless accusation" that was "irresponsible and opportunistic".
Senate president Basilio Núñez stated that Peña had been found guilty of "dereliction of duty". Senator Rafael Filizzola went further, describing the events as "the biggest corruption scandal in our democratic history — a tremendous blow to the state, to private citizens, and to the country's credibility and image."
An estimated three million depositors remain unable to access their savings and pensions. Long queues formed outside Ueno Bank branches in the capital Asunción on Tuesday and Wednesday as customers attempted to withdraw funds. Protests erupted across the country on Thursday, with thousands demanding their money back. Earlier demonstrations saw clashes between protesters and police, who deployed tear gas and water cannons.
In a video posted on X, Peña said: "It was never my intention to betray the trust you placed in me," adding that his priority was "the peace of mind of Paraguayans who entrusted their savings to our financial system."
Peña's deputy, Pedro Alliana, was sworn in as interim president and pledged not to "abandon" those affected. "Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," Alliana said. He will serve as president until 2028.
Analysts say Peña now faces the prospect of criminal prosecution over the bank's collapse.
Source: The Sun