Former president Santiago Peña indicted in Paraguay following impeachment

Former president Santiago Peña has been indicted on suspicion of breach of trust and self-dealing following his impeachment from office. The indictment is linked to a scandal involving the digital bank Ueno, which has triggered a financial and state crisis in Paraguay. According to reports from Tagesschau and taz, the prosecutor's office has requested pre-trial detention for both Peña and former central bank chief Carlos Carvallo.

The impeachment followed votes by the lower house and the Senate, which voted unanimously for Peña's removal. Shortly after the impeachment, the prosecutor's office issued an arrest warrant, and Peña was placed under house arrest, according to taz. The news portal abc reported that Peña appeared before prosecutors within 24 hours of the warrant being issued but exercised his right to remain silent.

The Ueno bank scandal

The crisis centres on the digital bank Ueno, which had grown into one of the country's largest banks before entering a severe crisis. The central bank initiated liquidation proceedings after the institution's capital ratio fell below half of the required minimum. As a result, customers were temporarily unable to access their accounts, according to Tagesschau.

Prosecutors are investigating several issues, including the oversight of the bank, the liquidation process, and the provision of public funds to the institution. Carlos Carvallo, who is also facing charges including breach of trust and the creation of false public documents, previously led Ueno before being appointed to the central bank by Peña.

Political fallout and investigations

The impeachment process occurred after Peña's lawyers unsuccessfully sought a 72-hour delay. Taz reports that Peña had previously attempted to resign in an effort to avoid impeachment and instead become a senator for life, which would have granted him parliamentary immunity. However, the legislature rejected this request.

Following the impeachment, the former vice president was sworn in as the new head of state and is expected to govern until August 2028, according to Tagesschau. Regarding potential conflicts of interest, Tagesschau reports that Peña maintained business ties to Grupo Vázquez—the group to which Ueno Bank belongs—until March 2025, though he consistently denied any wrongdoing.

Legal proceedings

The prosecutor's office has requested that a court freeze and place restrictions on the assets of both Peña and Carvallo to secure funds for potential compensation for financial damages. The prosecutor's office stated that these investigations are in the early stages and that while there is suspicion of the mentioned crimes, further evidence is being gathered. No charges regarding a criminal association have been part of the indictment so far. A court must now decide on the requested measures, including the application for pre-trial detention.

This piece was generated automatically by an AI model from the sources listed below. It has not been reviewed by a human editor.

Sources

• Bankenkrise: Anklage gegen Paraguays Ex-Präsidenten — Tagesschau
• Staats- und Finanzkrise in Paraguay: Haftbefehl gegen abgesetzten Präsidenten — taz