By Salma El-Sakka
Paraguay's President Santiago Peña was impeached and placed under house arrest on Friday after the Senate voted overwhelmingly to remove him from office over a crisis triggered by the collapse of Ueno Bank earlier this week.
Impeachment vote and arrest
The impeachment passed with 44 out of 45 senators voting in favor, with one lawmaker absent. Senate President Basilio Núñez declared Peña guilty of "dereliction of duty." Minutes after the vote, Peña was arrested and charged with misconduct, stripping him of his lifetime Senate seat and the immunity granted to former presidents.
Bank collapse leaves millions without savings
The failure of Ueno Bank, a digital bank seized by Paraguay's central bank, has left an estimated three million depositors unable to access their savings and pensions. The crisis has sparked widespread protests, particularly in the capital, Asunción.
Charges allege conflicts of interest and cover-up
Impeachment charges accuse Peña of conflicts of interest, manipulating regulatory oversight, diverting pension funds, and participating in an institutional cover-up involving the central bank. Peña, who held shares in the bank's parent company until last year, has denied any wrongdoing.
Interim president pledges compensation
Vice President Pedro Alliana was sworn in as interim president and will serve until 2028. He promised that citizens affected by the financial collapse would be fully compensated. Senator Rafael Filizzola described the scandal as the biggest corruption case in Paraguay's democratic history.
Prosecutor to question Peña on Saturday
Prosecutor Silvia Margarita Gonzalez Vester said Peña is due to be questioned on Saturday over allegations of breach of trust, influence peddling, and misappropriation of funds. His defense lawyer, Ricardo Preda, called the accusations "reckless" and "opportunistic."
