Paraguay's President Deposed and Arrested Following Ueno Bank Collapse
Paraguay's Senate voted 44 to 1 in favour of removing Santiago Peña from office, placed under house arrest in the Ueno Bank bankruptcy case.
Santiago Peña Deposed and Placed Under Arrest Following Ueno Bank Collapse
Paraguay's Senate voted on Friday to remove President Santiago Peña from office, with 44 of the 45 senators voting in favour of his removal, according to News.ro citing CNN. Vice President Pedro Alliana took the presidential oath shortly after the vote.
Peña had announced his resignation on Thursday, after Ueno Bank was closed following a solvency crisis. The Central Bank found that the institution's solvency ratio had fallen below 50% of the mandatory minimum threshold, leaving approximately 2.9 million clients — in a country of 6.1 million inhabitants — without access to their savings.
Three Criminal Cases and Loss of Immunity
Attorney General Emiliano Rolón Fernández opened three criminal cases against Peña and other former officials, targeting oversight of Ueno Bank, the placement of public funds in this entity, and actions by authorities from several state institutions. The vote for removal deprives Peña of parliamentary immunity.
Peña will remain under house arrest until a judge determines where he should be held during the criminal proceedings, according to prosecutor Christian Benítez. The prosecutor's office confirmed it has ordered his arrest in connection with the banking crisis.
Accusations of "Serious and Systematic Failure of Duties"
The lower house of Congress accused Peña of "serious and systematic failure of duties" in relation to the bank. The removal procedure was initiated by 35 opposition parliamentarians and dissidents from his own ruling party, the Colorado Party. The Chamber of Deputies had voted unanimously to initiate the procedure shortly after Peña announced his intention to resign.
Although not personally present at the vote, Peña was represented before the Senate by his lawyers, Adolfo Ferreiro and Ricardo Preda. Senators had previously rejected his request to be granted an additional 72-hour period to prepare his defence.
"This individual, Santiago Peña, must go to prison. An arrest warrant must be issued — preventive detention, straight to prison," Senator Yolanda Paredes had previously declared to journalists.
Resignation Announced on Social Media
Peña justified his resignation by the need to ensure stability in the country. "I have made the decision to present my resignation from the office of President of the Republic. I am doing this bearing in mind the stability of our country, social peace, and the need to protect our public institutions," he wrote in a message posted on social media.
He also cited his desire to restore peace of mind to Paraguayans "who entrusted their savings to our financial system".
Links Between Peña and Bank Through Public Funds
The investigation also looks at the fact that Ueno Bank received, during Peña's administration, millions of dollars in funds from public entities, including from the Social Security Institute (IPS), which administers pensions for the majority of the country's employees. The bank was also known for sponsoring local football teams, as well as Paraguay's national team.
Following the settlement or liquidation procedure, the savings of millions of clients remained frozen at the institution.
US Response
Peña, aged 44, had become one of Paraguay's youngest presidents in history. A former Finance Minister between 2015 and 2017 during the presidency of Horacio Cartes and later director of the Central Bank, he had been regarded as one of the firmest allies of the American administration led by Donald Trump.
A spokesman for the US State Department stated, in response to Peña's resignation, that the bilateral relationship remains solid. "We remain committed to the enduring relationship between the American and Paraguayan peoples and look forward to continuing our close cooperation on shared priorities," he said.
Source: News.ro