Paraguay’s Senate removed President Santiago Peña on Friday over the collapse of Ueno Bank, in an impeachment vote that placed him under house arrest. Vice President Pedro Alliana was sworn in as president the same day.
According to France 24, all 44 senators present voted to remove Peña for misconduct in office. It was the second time a Paraguayan president has been ousted by impeachment since 1989.
Peña was placed under house arrest in Asunción and must appear before prosecutors on Saturday morning, according to France 24. Euronews reported that prosecutors said he is awaiting questioning over alleged breach of trust, influence peddling and misappropriation of funds. France 24 reported the charges as breach of trust, influence peddling and using public office for personal gain.
Regulators seized Ueno Bank three days before the verdict, according to France 24. Customers could no longer withdraw cash or access their savings.
Lawmakers accuse Peña of steering hundreds of millions of dollars in public funds into Ueno and of allowing the state pension fund to deposit $355 million at the bank, beyond legal limits, according to France 24.
Prosecutors ordered the arrest of Carlos Carvallo, who ran the finance company that became Ueno, according to France 24. Carvallo was later named central bank chief by Peña in 2023. It was not immediately clear whether Carvallo had been taken into custody.
Ueno grew to one of Paraguay’s largest banks by deposits within a few years, with more than $800 million in public money supporting its expansion, according to France 24.
Peña offered his resignation before the verdict, saying he did not want his presence to be a cause of greater division or instability, according to France 24. The Hindu reported that Peña and Alliana both belong to the Colorado Party, which has been the dominant force in Paraguayan politics since the 1940s.
In a statement after being sworn in, Alliana said, "The Paraguay we receive today has urgent needs." He will serve until August 2028, according to France 24. Reports also say Alliana is under investigation in connection with the bank, but the sources give no detail on that point and no response from him.
Neither Peña nor his lawyers have responded to the charges in the sources reviewed. France 24 reported that the central bank describes the collapse as an isolated case, a claim that no other source confirms.
Peña is due to face prosecutors on Saturday morning. According to France 24, Alliana’s government faces pressure to return depositors’ money and to punish those responsible.
Most of the key facts in this report come from France 24. Euronews and The Hindu offered fewer details, and The Hindu’s material was limited to a headline, a photo caption and a short excerpt.
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This article was written with AI assistance from the published reporting listed above. It is part of the World Brief daily news podcast.