President Santiago Peña Impeached After Bank Collapse
Paraguay’s lawmakers impeached President Santiago Peña after the collapse of Ueno Bank left an estimated three million depositors unable to access savings and pensions. Peña was placed under house arrest, while his deputy, Pedro Alliana, took office as interim president and promised compensation for people affected by the financial crisis.
Paraguay’s President Santiago Peña was impeached and placed under house arrest after lawmakers removed him following the collapse of Ueno Bank, a crisis that left an estimated three million depositors unable to access their savings and pensions. The bank failure has put more than half of the country’s population out of reach of their accounts.
Peña was arrested on Friday, minutes after lawmakers voted unanimously to remove him from office. The impeachment passed with 44 of 45 senators voting in favor; one lawmaker was absent.
His deputy, Pedro Alliana, was sworn in as interim president. He said he would not “abandon” people affected by the scandal and promised that those hit by the financial collapse would be compensated.
Ueno Bank collapsed earlier this week and was seized by Paraguay’s central bank. The bank had links to Peña’s private business interests, and he held shares in the company that owned it until last year.
Peña had offered to resign on Thursday. Senators instead impeached him and charged him with misconduct, stripping him of the immunity usually granted to former presidents.
The charges alleged conflicts of interest, manipulation of regulatory oversight, diversion of pension funds and a cover-up involving the central bank. Peña has denied wrongdoing.
Prosecutor Silvia Margarita Gonzalez Vester said Peña was due to be questioned on Saturday over allegations of breach of trust, influence peddling and misappropriation of funds.
The bank’s collapse sparked protests and long queues at Ueno branches in the capital, Asuncion, as customers tried to withdraw money. Thousands took to the streets on Thursday to demand access to their funds.
Earlier demonstrations saw clashes with police, who used tear gas and water cannons. Public anger has been particularly strong in the capital.
In a video posted on X announcing his resignation, Peña said: “It was never my intention to betray the trust you placed in me.” He said his priority was “the peace of mind of Paraguayans who entrusted their savings to our financial system”.
Senate President Basilio Núñez said Peña had been found guilty of “dereliction of duty.” Senator Rafael Filizzola called the case “the biggest corruption scandal in our democratic history.”
Peña’s deputy said he would serve as president until 2028. His defense lawyer, Ricardo Preda, described the allegations as a “reckless accusation” that was “irresponsible and opportunistic”.
