Santiago Peña Ousted, Placed Under House Arrest in Paraguay
Paraguay’s Senate removed President Santiago Peña in a unanimous vote, and authorities placed him under house arrest as Pedro Alliana was sworn in. Prosecutors said possible charges were still being determined after the collapse of digital bank ueno triggered a political and financial crisis.
Paraguay’s Senate ousted President Santiago Peña in a unanimous vote on November 6, and Pedro Alliana was sworn in as his successor in Asunción as authorities placed Peña under house arrest.
The move followed the collapse of digital bank ueno, which had provided accounts for nearly half of Paraguay’s population. Prosecutors said they were still determining possible charges against Peña, including influence peddling.
Peña was ordered to appear at the prosecutor’s office on Saturday morning. By the time authorities placed him under house arrest, dozens of protesters had gathered outside his residence, where police set up a security cordon.
The Senate completed impeachment proceedings despite Peña offering his resignation on Thursday. Lawmakers cited questions about his past links to ueno, including his former stake in the bank’s holding company.
The impeachment charges alleged conflicts of interest, manipulation of regulatory oversight, diversion of pension funds and participation in an institutional cover-up involving the central bank.
Peña denied wrongdoing and described the affair as a regulatory issue. The central bank denied a conflict of interest, saying its chief, Carlos Carvallo, had recused himself from all decisions related to ueno.
Prosecutors issued an arrest warrant for Carvallo on Friday. He resigned earlier in the week, as authorities tried to prevent the lender from dissolving; eight former ueno executives had also been detained.
The crisis began earlier in the week when Paraguay’s central bank intervened in ueno. Questions had emerged about the bank’s lending practices and ties to political and financial figures. Carvallo had led ueno until 2023.
Peña’s interior minister, chief of staff and two advisers also resigned. The turmoil has fueled demonstrations in downtown Asunción, where people have demanded accountability for the bank’s collapse and faster compensation for depositors whose savings remain frozen.
Some account holders began recovering money on Thursday after Peña approved legislation intended to accelerate payments to affected depositors. Those unable to access accounts include pensioners who receive state benefits through ueno.
Protesters gathered opposite the central bank’s headquarters on Friday, chanting, “We want our money.”
