In brief
Paraguay’s Senate voted 39‑29 to remove President Santiago Peña, who was arrested the same Friday outside his residence in Asunción amid accusations of abuse of office, mismanagement, and fraud linked to the collapse of Ueno Bank. His lawyer confirmed that Peña will be released on bail and appear at an upcoming court hearing, while the Senate announced a full impeachment trial will follow. Subsequent reports say Peña has been placed under house arrest as prosecutors probe alleged misuse of public funds directed to the bank.
President Santiago Peña was arrested on Friday outside his residence in Asunción after the Paraguayan Senate voted 39‑29 to remove him over the collapse of Ueno Bank, a private financial institution that had abruptly shut down and left thousands of depositors without access to their funds.
The Senate’s statement charged Peña with abuse of office, mismanagement and fraud, accusing him of ignoring warnings about the bank’s failures and of using public confidence as a basis for political influence over the institution.
Senate officials said the president’s conduct “exceeded the public’s expectation of responsible governance.”
Pena’s lawyer said the former President would appear in court soon for an initial hearing and will be free on bail.
Lawmakers have also alleged that Peña directed hundreds of millions of dollars in public funds to Ueno Bank while regulators overlooked the institution’s problems, a claim that prosecutors are now investigating.
In a later development, a report indicated that Santiago Peña has been placed under house arrest on suspicion of breach of trust while prosecutors continue to probe the bank’s collapse.
The Senate has announced that a full impeachment trial will proceed, with a parliamentary committee to determine the final disciplinary measures, and that the interim administration will investigate all banks’ finances to restore public confidence in Paraguay’s banking sector.
