Paraguay resumes impeachment proceedings against President Santiago Pena
The Senate is moving to remove the president following his resignation and links to a major financial crisis involving Ueno Bank.
The Senate in Paraguay convened a rare session on Friday to continue impeachment proceedings against President Santiago Pena. This follows the formal filing of charges against the conservative economist on Thursday, even though he had already resigned.
According to Al Jazeera, the move comes after the lower house of Congress approved the impeachment charges with a 78-0 vote. Pena, who took office in 2023, has asked for an additional 72 hours to get ready for his Senate defence.
The political crisis follows the central bank's intervention at Ueno Bank, a digital lender, due to breaches of minimum solvency requirements. The bank held $850m in public funds, and its collapse has prevented more than half of the population from accessing their accounts.
Lawmakers have alleged a conflict of interest against Pena, noting he held a stake in the bank's parent company, Grupo Vazquez, until last year. Pena stated he sold those shares, but officials are questioning if authorities ignored warnings regarding the lender.
In a video address on Thursday, Pena apologised for not preventing the crisis and expressed his wish that public funds and resources belonging to Paraguayans be protected. The situation has led to the resignation of central bank chief Carlos Carvallo and the arrest of eight Ueno executives.
The attorney general has launched three criminal investigations into the bank's collapse and regulatory oversight. If convicted, Pena will lose his lifetime Senate seat and the legal protections typically given to former presidents.