Congress rejects Peña's resignation - public prosecutor investigates

In Paraguay the public prosecutor's office is now getting involved. Although President Peña announced his resignation, Congress did not accept it and initiated impeachment proceedings.

State crisis in Paraguay Congress does not accept Peña's resignation As of: November 6th, 2026 • 5:28 a.m

Paraguay is rocked by a financial scandal in which President Peña is also implicated. The head of state wants to resign, but Congress does not accept the request to resign - and initiates impeachment proceedings.

The Paraguayan public prosecutor's office wants to initiate criminal investigations against President Santiago Peña and other current and former government officials.

Attorney General Emiliano Rolón Fernández ordered three investigations into the Ueno Bank crisis on Thursday (local time). The focus is on state banking supervision, dealing with the collapse of the institution and the investment of public money in the bank.

The investigations are aimed, among other things, at possible failures in the control of the bank and the use of public deposits. Peña said he would cooperate with investigators. “Regardless of the outcome of these proceedings, I will act responsibly and with respect for the Constitution,” he wrote on X.

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Peña had previously announced his resignation amid the threat of impeachment after the Ueno Bank collapse sparked nationwide protests and shook confidence in his government.

The joint session of the Senate and House of Representatives no longer had a quorum at the time of the vote on Peña's resignation request, as was seen in the live broadcast by the ABC channel on Thursday evening (local time).

The reason for this was the withdrawal of the Colorado Party elected officials from the meeting room - apparently because it became clear that they did not have the necessary majority to accept Peña's resignation.

If Peña accepted the resignation, he would have avoided impeachment proceedings. However, the Chamber of Deputies had previously initiated this unanimously due to the banking crisis surrounding the digital bank Ueno.

After the failed resignation, the Senate opened proceedings against Peña and summoned the current president on Friday. He announced on Platform X that he wanted to face the impeachment proceedings and defend himself.

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Paraguay is in a serious crisis. Within three years, Ueno had risen from a simple money lender to one of the most important banks in Paraguay, modern, digital, with a user-friendly app. In 2023, Ueno became a sponsor of the Paraguay national football team. Today it has 2.9 million customers, more than half of Paraguay's adult population - and pension payments were also processed through it.

However, regional media reported on risky loan transactions at Ueno. MPs led by Colorado party leader Horacio Cartes then called for an inspection by the supervisory authorities. It turned out that the bank does not have the required capital.

Peña, who until last year held shares in a company affiliated with Ueno, expressed remorse - but did not accept responsibility for the crisis. “I would like to apologize to people if I have disappointed them at any time,” he said. At the same time, he emphasized that citizens' savings were secure and the financial system was stable.

With information from Anne Herrberg, ARD Rio de Janeiro

This topic in the program: The First | daily news | 11/06/2026 | 04:54