In brief
Santiago Peña was impeached and placed under house arrest after Ueno Bank collapsed, freezing accounts of approximately 2.9 million Paraguayans. Vice President Pedro Alliana was sworn in as interim president, and the government is investigating allegations of corruption and money laundering linked to Peña’s former ties to the bank.
President Santiago Peña was impeached and placed under house arrest in Paraguay on Friday after a Senate vote of 44‑0 removed him from office amid the collapse of Ueno Bank, which froze the accounts of roughly 2.9 million customers, covering about 60 % of the country’s adult population, United Press International reported.
The Chamber of Deputies had approved impeachment charges with 78 votes before the Senate removed Peña, who has denied wrongdoing and said his attorney called the accusations "irresponsible and opportunistic."
A report by the Ueno Bank deposit guarantee fund said it had begun reimbursing eligible depositors, with initial payments of about $18,700 per customer and full coverage approaching $37,000, according to UPI.
Vice President Pedro Alliana was sworn in as interim president, and said following his inauguration that "Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," a statement that UPI cited as coming from the BBC.
Alliana
"Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated."
Prosecutors opened an investigation into allegations that Peña used his political influence to benefit Ueno Bank, where he previously held shares, and are probing claims of possible illicit enrichment, money laundering, influence peddling and misappropriation of funds, UPI reported.
Prosecutor Elena Fiore Franco said Peña cooperated with authorities when officers arrived at his home, telling the Guardian that "It has been established that he is indeed inside his home. He voluntarily allowed officers to enter and made himself available for all procedural purposes."
Fiore Franco
"It has been established that he is indeed inside his home. He voluntarily allowed officers to enter and made himself available for all procedural purposes."
Reports indicate that protesters took to the streets in Asunción demanding answers following the bank’s collapse, a detail mentioned in UPI coverage.
With no lifetime Senate seat or constitutional protections for former presidents, Peña’s resignation was rejected by lawmakers as he was removed under the impeachment process, according to UPI.
