Paraguayan ex-president Peña detained in custody over Ueno Bank collapse
A Paraguayan court has ordered the detention of former president Santiago Peña, who is being investigated in connection with the collapse of Ueno Bank. Former central bank governor Carlos Carvallo has also been detained.
Paraguayan ex-president in custody: court ruling on Saturday
A Paraguayan court ordered the detention of former president Santiago Peña on Saturday, as reported by Reuters in the early hours of Sunday. The public prosecutor's office is investigating his links to Ueno Bank, whose collapse left nearly half of the country's 6.5 million inhabitants without access to their own money. The court also ordered the detention of former central bank governor Carlos Carvallo.
According to ct24.ceskatelevize.cz, the court emphasised that the detention of the ex-president is "necessary" to ensure his presence in the country during the investigation. Peña faces charges of abuse of trust and misuse of office for personal enrichment. His legal representative stated that his client denies the allegations.
Carvallo, formerly also chief of Ueno Bank, faces charges of abuse of trust, issuing false official documents and misuse of authority for personal enrichment.
The central bank placed Ueno Bank under forced administration after the institution's capacity to settle its obligations fell below half of the legally prescribed minimum. This procedure, unlike ordinary insolvency, allows deposits from clients to be transferred to more stable banks before the remaining assets are sold.
Ueno Bank has approximately three million customers, roughly 60 per cent of Paraguay's adult population, and manages between 800 and 850 million dollars in public funds. According to data from the fund itself, this amount includes approximately 380 million dollars invested by the Paraguayan state pension and health fund IPS.
Source: Google News CZ — Crime (cs)