ASUNCIÓN — Paraguayan President Santiago Peña was impeached and placed under house arrest on Friday following a severe financial crisis sparked by the collapse of Ueno Bank. The downfall of the digital institution left over half of Paraguay's population—an estimated three million depositors—unable to access their savings and pensions.
Senators unanimously voted 44 to zero to remove Peña from office, rejecting his prior offer to step down and stripping him of the legal immunity typically afforded to former presidents. Lawmakers, including members of Peña's own party, found him guilty of dereliction of duty. Impeachment charges alleged conflicts of interest, manipulation of regulatory oversight, diversion of pension funds, and a central bank cover-up linked to the bank, where Peña held shares until last year. Peña has denied any wrongdoing, and his defence lawyer has dismissed the claims as irresponsible and opportunistic.
The banking collapse triggered widespread public outrage, with thousands of demonstrators taking to the streets of the capital, Asunción, where protests occasionally met with police tear gas and water cannons. Prosecutor Silvia Margarita Gonzalez Vester stated that Peña is scheduled to face questioning on Saturday regarding allegations of breach of trust, influence peddling, and misappropriation of funds.
Following the ouster, Vice-President Pedro Alliana was sworn in as the interim leader. Alliana will serve out the remainder of the presidential term until 2028, pledging that affected citizens will be fully compensated for the financial fallout.
