Sunday, November 8, 2026 -Prosecutors in Paraguay have charged former president Santiago Peña over his alleged role in a banking scandal that led to his impeachment.
He has been accused of breach of trust and administration
for personal gain.
Peña, who denies any wrongdoing, was forced from office
after a bank collapse triggered a crisis that left more than half of the
country's population without access to their accounts.
He was arrested on Friday minutes after lawmakers, including
from his own party, unanimously voted to remove him from office following the
collapse of Ueno Bank, which has links to his private business interests.
He had offered to step down but rather than accept his
resignation, senators impeached Peña and charged him with misconduct, meaning
he has been stripped of the immunity usually granted to ex-presidents.
Peña, who until last year held shares in the company that
owned the bank, has denied any wrongdoing.
The impeachment charges that led to Peña's removal alleged
he had conflicts of interest, manipulated regulatory oversight, diverted
pension funds, and participated in an institutional cover-up involving the
central bank.
Peña's deputy, Pedro Alliana, has been sworn in as the new
interim president and promised not to "abandon" the millions of
people affected by the scandal.
"Compatriots who are now going through a difficult time
as a result of the financial collapse will be fully compensated," said
Alliana, who will serve as president until 2028.
The demise of the digital bank left more than half of
Paraguay's population without access to their savings after it was seized by
Paraguay's central bank.
Long lines of people trying to withdraw money from Ueno
branches snaked down the streets of the capital Asuncion on Tuesday and
Wednesday.
An estimated three million depositors remain unable to
access their savings and pensions, prompting public outrage particularly in the
capital, Asunción.
Protests erupted across the country in response, with
thousands taking to the streets on Thursday to demand their money.
Earlier demonstrations featured clashes with the police, who
used tear gas and water cannons on the crowd.
Peña's impeachment passed with 44 out of 45 senators voting
in favour of it. One lawmaker was absent.
"It was never my intention to betray the trust you
placed in me," Peña said in a video posted on X announcing his
resignation, adding his priority was "the peace of mind of Paraguayans who
entrusted their savings to our financial system".
Afterwards, senate president Basilio Núñez said Peña was
found guilty of "dereliction of duty".
Pedro Alliana takes the oath of
office as interim President
Senator Rafael Filizzola said: "We are facing the
biggest corruption scandal in our democratic history – a tremendous blow to the
state, to private citizens, and to the country's credibility and image."
Analysts say Peña is likely to now be prosecuted over the
bank's collapse.
His defence lawyer Ricardo Preda described the allegations
as a "reckless accusation" that was "irresponsible and
opportunistic"
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