Former Paraguayan Leader Faces Serious Charges, Arrested and Held Under House Arrest Over Multiple Corruption Allegations
The President of Paraguay faces severe consequences, having been impeached and placed under house arrest amid a digital banking crisis that has left around 3 million citizens unable to access their savings and pensions, amid allegations of conflicts of interest and corruption.
Santiago Peña, President of Paraguay, has been hit by a storm following the collapse of the digital bank Ueno Bank, which caused damage to millions of citizens. Recently, he was arrested just minutes after members of Congress, including those from his own political party, unanimously voted to impeach him and he was placed under house arrest.
Previously, Peña addressed the public on Thursday, apologizing for the incident and affirming that he never intended to betray the public's trust. He offered to resign, but the Senate did not accept his resignation and instead proceeded with impeachment, charging him with misconduct, resulting in the loss of the legal immunity typically granted to former presidents.
Peña previously held shares in the company that owned the bank until last year, but he insists he committed no wrongdoing.
This crisis arose after the Central Bank of Paraguay took over Ueno Bank, causing more than half the country's population to lose access to their savings. It is estimated that about 3 million depositors have been affected, unable to withdraw their savings or pensions, leading to widespread protests, especially in the capital city, Asunción.
The impeachment allegations against Peña cover multiple issues, including conflicts of interest, interference in regulatory oversight agencies, misappropriation of pension funds, and involvement in concealing information within state entities related to the central bank.
Sylvia Margarita Gonzalez Vester, the prosecutor handling the case, revealed that Peña is scheduled for questioning on Saturday to address allegations of breach of trust, abuse of influence for personal gain, and embezzlement.
The impeachment vote in the Senate passed with 44 votes in favor out of 45 members; one member was absent. Following the vote, Basilio Nunez, Senate President, stated that Peña was guilty of neglecting his duties.
After the impeachment, Vice President Pedro Alliana took the oath as acting president and will hold the position until 2028, pledging to fully compensate those affected by this financial crisis.
Senator Rafael Filizzola stated that Paraguay is facing the biggest corruption scandal in the history of its democracy, which has caused massive damage to the government, the public, and the country's credibility.
Meanwhile, analysts believe Peña is likely to face further legal proceedings related to the bank collapse. His defense lawyer, Ricardo Preda, argued that all charges are rash, irresponsible accusations motivated by political interests.
