In brief
Santiago Peña was removed from office by a 44‑0 Senate vote and placed under house arrest minutes later, as the collapse of Ueno Bank has frozen accounts for almost three million Paraguayans. Vice President Pedro Alliana was sworn in as interim president, while prosecutors investigate allegations of corruption, money laundering and influence peddling linked to Peña’s former ties with the bank.
Former Paraguayan President Santiago Peña was removed from office by a 44‑0 vote of the Senate on Friday and was placed under house arrest minutes later, as the country’s banking system rattled by the collapse of Ueno Bank left almost three million people unable to access their savings.
The National Assembly’s Chamber of Deputies had voted 78‑to‑0 to summon the impeachment procedure on Thursday, rejecting Peña’s resignation and opening the door for the Senate to strip him of office. The Senate followed suit the next day, voting 44‑0 to impeach Peña for alleged corruption and financial misconduct connected to the digital lender’s collapse.
In the Senate chamber, Vice President Pedro Alliana was sworn in as interim president. Alliana said the new administration would seek to compensate those impacted by the financial disaster and noted that the Deposit Guarantee Fund had begun reimbursing eligible depositors with initial payments of about US$18,700, rising to a maximum coverage of roughly US$37,000 per account.
Prosecutors have launched an investigation into accusations that Peña used his influence to benefit Ueno Bank, where he previously held shares, and are examining possible illicit enrichment, money laundering, influence peddling and misappropriation of funds. Peña’s attorney, Ricardo Preda, characterized the allegations as “irresponsible and opportunistic.”
According to Prosecutor Elena Fiore Franco, Peña cooperated with authorities when officers entered his home and permitted all procedural actions, according to Guardian reports. The former president, 47, is no longer afforded the legal protections that would normally shield former heads of state in Paraguay’s Constitution, as lawmakers rejected his resignation and stripped him of his Senate seat.
The crisis has put the lives of roughly 2.9 million Paraguayan adults in jeopardy, about 60 % of the adult population, as Ueno Bank has frozen their deposits. The national Deposit Guarantee Fund is currently disbursing payouts, with initial credits of almost US$18,700 per customer and a maximum guaranteed reimbursement approaching US$37,000.
The upheaval has sparked widespread protests in Asunción, with citizens demanding transparency and restitution as the government faces scrutiny for its role in the digital lending boom that ended in catastrophe. The legal and political inquiries into Peña’s conduct are expected to continue, as lawmakers weigh further measures to restore confidence in the country’s banking system.
