The impeachment follows the collapse of Ueno Bank, which left approximately three million people unable to access their savings and pensions.
Paraguayan President Santiago Peña was impeached and placed under house arrest on Friday after lawmakers voted unanimously to remove him from office. According to BBC News, the Senate's decision followed the collapse of Ueno Bank, a digital lender with links to Peña's private business interests. The impeachment process stripped the former president of his legal immunity.
The Senate removed Peña after he offered to resign on Thursday, a move lawmakers did not accept. Senate president Basilio Núñez stated that Peña was found guilty of dereliction of duty. Senator Rafael Filizzola described the situation as the largest corruption scandal in the country's democratic history.
The impeachment charges allege that Peña used his political influence to benefit the bank, interfered with regulatory supervision, and moved pension funds into the institution. Prosecutors also claim he was involved in a cover-up at the central bank. Peña has denied all wrongdoing, while his lawyer, Ricardo Preda, called the allegations irresponsible and opportunistic.
The banking crisis began after the central bank seized Ueno Bank on Tuesday because its capital fell below legal requirements. This left an estimated three million depositors, representing more than half of the population, without access to their funds. Protests have occurred across the country, including clashes with police in Asunción.
Pedro Alliana, the former vice-president, has been sworn in as interim president until 2028. Alliana promised that those affected by the financial collapse will be fully compensated. Peña is scheduled to be questioned on Saturday regarding allegations of misappropriation of funds, influence peddling, and breach of trust.
