Paraguay Senate impeaches President Santiago Peña over bank collapse scandal
Former President Santiago Peña was placed under house arrest following his removal from office by the Senate on Friday.
The Paraguayan Senate voted unanimously on Friday to remove President Santiago Peña from office, following his impeachment over the failure of Ueno Bank. According to the Times of India, Peña was placed under house arrest in Asunción on the same day on charges including influence peddling and breach of trust.
Lawmakers accused Peña of using his political position to direct hundreds of millions of dollars in public funds to the lender. The Senate's decision to impeach him rather than accepting his resignation on Thursday stripped him of the lifetime Senate membership and parliamentary immunity typically granted to former presidents.
The political crisis follows the seizure of Ueno Bank by regulators earlier this week. The bank's failure has prevented millions of customers from accessing their savings or using bank cards, according to reports from the Times of India and Bhaskar English.
Vice President Pedro Alliana was sworn in as president on Friday to serve the remainder of the term until August 2028. Alliana, who is also under investigation regarding the bank, faces the task of ensuring depositors recover their funds.
Prosecutors have also ordered the arrest of Carlos Carvallo, the former central bank chief appointed by Peña in 2023. It remains unclear if Carvallo has been taken into custody.
Peña has denied any wrongdoing. In a farewell message, he stated he did not want his presence to cause further instability in the country.