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The deposed president of Paraguay Santiago Peña was placed in pre-trial detention on Saturday, following his indictment in connection with the collapse this week of the Ueno Bank, which injured millions of savers, announced a Paraguayan judge.
The decision comes after the prosecution charged him for the alleged crimes of abuse of confidence and administration for personal benefit
Santiago Peña was ousted due to a banking crisis which left millions of people unable to access their money.
Paraguay’s Senate has ousted President Santiago Pena over the collapse of a major bank tied to his government. Millions of customers' accounts are frozen, with public pension and health care funds also tied up.
The sudden leadership change comes as Paraguay reels from the collapse of the Ueno Bank, a popular lender.
Paraguay’s Senate has ousted President Santiago Pena over the collapse of a major bank tied to his government. Millions of customers' accounts are frozen, with public pension and health care funds also tied up.
Peña was removed from office and now faces possible criminal responsibilities for her role in the Ueno Bank scandal.
The opposition accuses Santiago Peña of conflict of interest for his links with the Ueno Bank's own group and questions possible economic benefits.
Lawyers Adolfo Ferreiro and Ricardo Preda appeared this Friday before the Senate of Paraguay to exercise the technical and legal defence of Santiago Peña, who did not show up personally despite being summoned. The hearing began after the High House rejected the request for a 72-hour extension requested by the president, in the midst of the political crisis unleashed by the intervention and closure of Ueno Bank, an entity linked to the president and which managed funds from more than 2.9 million customers.
Three years after assuming power, Santiago Peña ended up being dragged away by the crisis following the intervention of the Ueno Bank.
Paraguayan President Santiago Peña, who resigned on Thursday, has moved in three years from an image of a brilliant economist embodying the young guard of the ruling party in the country, to that of a stateman who is dismissed for his ties with a bank that has become insolvent.
Economist Santiago Peña came to the presidency of Paraguay in 2024 as one of the youngest leaders in the country's history, carrying points for his proximity to the business world, especially the bank Ueno, which is currently in insolvency and pushed Peña to resign from office.
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In the wake of a national banking scandal, the President of Paraguay, Santiago Peña, announced his resignation on Thursday, but remained technically at the head of the state because Parliament failed to vote to accept or refuse it. Accused of "bad performance of his duties" and "conflict of interest", he is preparing for his trial in impeachment on Friday.
The President of Paraguay resigned in the midst of the crisis unleashed by Ueno Bank's intervention. The Congress will begin a political trial on Thursday against Peña after having no quorum to decide whether or not to accept his resignation.
The move follows a bank collapse and after the lower house of congress voted in favour of pursuing an impeachment trial against him.
The Chamber of Deputies rejects his resignation in order to prevent him from having a party and moves forward with the political trial.
Paraguay's President Santiago Pena has resigned amid a crisis over his ties to collapsed lender Ueno. Millions of customers' accounts are frozen, with public pension and health care funds also tied up.
The decision comes after legislators from the opposition and its own party pushed a political trial to remove it.
Through a video published on his social media, Paraguay's President, Santiago Peña, resigned on November 5 following the opening of a debate in the Chamber of Deputies on a possible political trial for the intervention and closure of Ueno Bank, an entity linked to the president. The Central Bank's measure triggered a financial and political crisis that affected 2.9 million customers with branch closures and access to accounts.
