Asunción, Paraguay, November 7 (ANI): Paraguay’s Senate voted on Friday (local time) to impeach President Santiago Peña, with 44 of the 45 members supporting his removal over alleged links to the collapse of Ueno Bank, which triggered a major financial scandal and criminal investigation, CNN reported.
According to CNN, Vice President Pedro Alliana was sworn in as the country’s new president shortly after the vote.
Peña, who announced his resignation on Thursday amid mounting pressure, has been placed under house arrest pending a judge’s decision on his custody arrangements during the criminal proceedings, prosecutor Christian Benítez told CNN.
The prosecutor’s office said it had ordered Peña’s arrest in connection with the Ueno Bank crisis. The impeachment vote also removes his parliamentary immunity, clearing the way for further legal proceedings against him.
According to CNN, Paraguay’s attorney general has opened three criminal investigations involving Peña and other former officials over the bank’s collapse. The cases concern the supervision and resolution of Ueno Bank, the placement of public funds in the institution and the actions of officials from various state agencies.
The impeachment proceedings followed allegations by 35 opposition lawmakers and dissidents from the ruling party, who accused Peña of “serious and systematic dereliction of duty” in his dealings with the bank.
Although Peña did not attend the Senate proceedings, his legal team, comprising attorneys Adolfo Ferreiro and Ricardo Preda, represented him before lawmakers.
The Senate rejected his request for a 72-hour extension to prepare his defense, CNN reported.
Peña submitted his resignation while lawmakers were debating the charges against him. Earlier, the Chamber of Deputies had voted unanimously to initiate impeachment proceedings following his announcement.
“This guy, Santiago Peña, needs to be jailed. An arrest warrant must be issued … pretrial detention, straight to jail,” Sen. Yolanda Paredes told reporters, according to CNN.
Peña said he had decided to step down to reassure Paraguayans who had entrusted their savings to the country’s financial system.
“I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind,” he said in a message posted on social media.
The crisis erupted after Paraguay’s Central Bank intervened in Ueno Bank, a private financial institution with which Peña had business ties. During his administration, the bank received millions in funds from public entities, including the Social Security Institute (IPS), which manages pensions for most of the country’s workers, CNN reported.
The Central Bank found that Ueno Bank’s solvency ratio had fallen below 50% of the required minimum following adjustments to its financial statements during the regularization process. The institution had approximately 2.9 million customers in a country with a population of 6.1 million.
Authorities also said the bank had exceeded lending limits for related companies. Its intervention and subsequent resolution proceedings left millions of customers unable to access their savings, triggering anxiety, long lines at banks and street protests.
Attorney General Emiliano Rolón Fernández ordered three investigations into the circumstances surrounding the bank’s supervision and resolution, the placement of public funds in the institution and the conduct of officials from various state agencies.
The Central Bank announced Thursday night that it would begin processing guarantee payments to eligible Ueno customers in phases.
Peña, 44, took office in August 2023 for a five-year term and was among the youngest presidents in Paraguay’s history. He previously served as finance minister from 2015 to 2017 under former President Horacio Cartes and also worked as a director of the Central Bank.
He is also regarded as one of the strongest allies of U.S. President Donald Trump’s administration and has aligned himself with its political priorities, particularly on immigration and security.
The banking crisis comes as Paraguay has sought to establish itself as a regional financial hub, building on the investment-grade status it secured in recent years after receiving recognition from two of the world’s leading credit rating agencies.
The developments have dealt a significant political and financial blow to the country, with Peña now facing criminal proceedings following his removal from office. (ANI)
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