Santiago Peña was placed under house arrest after being removed as president of Paraguay through impeachment proceedings. His ouster followed a financial scandal involving Ueno Bank, a digital bank linked to his private business interests.
The arrest took place on Friday, just minutes after lawmakers, including members of the president’s own party, voted unanimously to remove him. Ueno Bank’s collapse earlier in the week had escalated the crisis.
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A day before the vote, Peña had offered to resign, but the Senate rejected his resignation. Instead, senators decided to remove him through impeachment proceedings, accusing him of misconduct in office. As a result, he lost the immunity usually granted to former presidents.
In the Senate, 44 of the 45 senators voted in favor of his removal, while one lawmaker was absent. Senate President Basilio Núñez then announced that Peña had been found guilty of negligence in carrying out his duties.
The accusations against him include conflicts of interest, interference in regulatory oversight, diversion of pension funds and attempts to cover up the scandal through official institutions. The Central Bank was also allegedly involved in the cover-up.
Peña has denied any wrongdoing or involvement in illegal activities. Until last year, he held shares in the company that owns the bank.
Prosecutor Silvia Margarita Gonzalez Vester announced that the former president was expected to be questioned on Saturday over allegations of breach of trust, influence peddling and misappropriation of funds.
Ueno Bank’s collapse has triggered a severe financial crisis in Paraguay. The Central Bank intervened and took control of the institution, while around three million depositors were left unable to access their savings and pensions.
Numerous protests have taken place across the country, particularly in the capital, Asunción, where citizens have demanded their money back.
