Paraguay’s President Santiago Peña has been impeached and placed under house arrest following the collapse of Ueno Bank, which froze savings for millions of citizens. Lawmakers voted unanimously to remove him from office on Friday, minutes after the digital lender failed and triggered a nationwide financial crisis.
Peña had offered to resign on Thursday, but senators chose to impeach him instead. This legal maneuver stripped him of the immunity usually granted to former heads of state, exposing him to potential criminal prosecution. He is scheduled to be questioned by prosecutors on Saturday regarding allegations of breach of trust and influence peddling.
Ueno Bank Collapse Triggers National Crisis
The immediate catalyst for the political upheaval was the seizure of Ueno Bank by Paraguay’s central bank earlier this week. The digital lender, which had ties to Peña’s private business interests, collapsed suddenly, leaving an estimated three million depositors unable to access their money. This figure represents more than half of the country’s population.
Long lines of frustrated citizens snaked through the streets of the capital, Asunción, as people attempted to withdraw their funds. The inability to access savings and pensions sparked widespread public outrage. Thousands took to the streets on Thursday to demand their money, leading to clashes with police who deployed tear gas and water cannons to disperse the crowds.
Peña, who held shares in the company that owned Ueno Bank until last year, has denied any wrongdoing. His defense lawyer, Ricardo Preda, described the allegations against the former president as a reckless and opportunistic accusation.
Interim Leadership Promises Compensation
Peña’s deputy, Pedro Alliana, was sworn in as the new interim president. He pledged to serve until 2028 and promised to support the millions affected by the scandal. Alliana stated that compatriots going through this difficult time would be fully compensated for their losses.
The impeachment charges against Peña alleged serious misconduct, including conflicts of interest, manipulation of regulatory oversight, and the diversion of pension funds. Senate President Basilio Núñez stated that Peña was found guilty of dereliction of duty. The vote passed with 44 out of 45 senators in favor, with one lawmaker absent.
Senator Rafael Filizzola characterized the event as the biggest corruption scandal in the nation’s democratic history. He noted that the incident dealt a tremendous blow to the state, private citizens, and the country’s international credibility. Analysts suggest that Peña is likely to face prosecution for his role in the bank’s failure.
In a video posted on social media announcing his resignation, Peña said it was never his intention to betray the trust placed in him. He emphasized that his priority was the peace of mind of Paraguayans who had entrusted their savings to the financial system.
Source: BBC
