Paraguay's President Santiago Peña has been impeached and placed under house arrest following the collapse of Ueno Bank, a crisis that has left millions without access to their savings. The move comes after lawmakers, including members of his own party, voted on Friday to remove him from office.
Impeachment and Arrest
Peña was arrested minutes after the Senate voted 44-45 in favor of impeachment, with one lawmaker absent. The charges against him include misconduct, conflicts of interest, manipulating regulatory oversight, diverting pension funds, and participating in an institutional cover-up involving the central bank. Peña, who until last year held shares in the company that owned the bank, has denied any wrongdoing.
He had offered to resign on Thursday, but lawmakers chose to impeach him instead, stripping him of his lifetime Senate seat and the immunity granted to former presidents. Senate President Basilio Núñez declared Peña guilty of "dereliction of duty."
Bank Collapse Triggers Crisis
The collapse of Ueno Bank, a digital bank seized by Paraguay's central bank earlier this week, has left more than half of the country's population without access to their savings. An estimated three million depositors are unable to access their savings and pensions, prompting widespread protests, particularly in the capital, Asuncion.
Interim President Sworn In
Vice-President Pedro Alliana was sworn in as interim President and will serve until 2028. In his address, Alliana promised that "compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated."
Prosecution Likely
Peña is due to be questioned on Saturday over allegations of breach of trust, influence peddling, and misappropriation of funds, according to prosecutor Silvia Margarita Gonzalez Vester. Analysts say he is likely to be prosecuted over the bank's collapse.
Senator Rafael Filizzola described the situation as "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."
Peña's defense lawyer, Ricardo Preda, called the allegations a "reckless accusation" that was "irresponsible and opportunistic." In a national address on Thursday, Peña expressed remorse, saying, "It was never my intention to betray the trust you placed in me."
The impeachment and arrest mark a dramatic turn in Paraguayan politics, as the country grapples with the fallout from one of its worst financial crises.
