Prosecutors in Paraguay have formally charged former President Santiago Peña with breach of trust and administration for personal gain following his impeachment and arrest over the collapse of Ueno Bank. Peña was impeached and placed under house arrest Friday after lawmakers unanimously voted to remove him from office over the digital bank's demise, which has left more than half of Paraguay's population—an estimated three million depositors—unable to access their savings and pensions. Vice President Pedro Alliana was sworn in as interim president and will serve until 2028.
The impeachment passed with 44 of 45 senators voting in favor. Peña, who until last year held shares in the company that owned the bank, had offered to step down Thursday. Rather than accept his resignation, senators impeached him and charged him with misconduct, stripping him of the immunity usually granted to former presidents. Senate President Basilio Núñez said Peña was found guilty of dereliction of duty. Peña has denied any wrongdoing, and his defense lawyer Ricardo Preda described the allegations as a reckless accusation that was irresponsible and opportunistic.
The impeachment charges alleged Peña had conflicts of interest, manipulated regulatory oversight, diverted pension funds, and participated in an institutional cover-up involving the central bank. Prosecutor Silvia Margarita Gonzalez Vester had said Peña was due to be questioned Saturday over allegations of breach of trust, influence peddling, and misappropriation of funds. The formal charges now confirm prosecutors are moving forward with criminal prosecution.
The bank's collapse prompted widespread protests particularly in the capital, Asunción. Senator Rafael Filizzola called the situation the biggest corruption scandal in Paraguay's democratic history. In an address to the nation Thursday, Peña said he was sorry and that it was never his intention to betray the trust placed in him. Alliana pledged that citizens affected by the financial collapse would be fully compensated.