Paraguayan lawmakers voted unanimously to impeach President Santiago Peña on Friday following the sudden collapse of a major digital bank earlier in the week. Following his removal from office, Peña was placed under house arrest and stripped of the legal immunity typically granted to former heads of state.
The financial failure of Ueno Bank, an institution linked to Peña’s private commercial interests, disrupted access to savings and pension funds for more than half of the South American nation’s population. Peña, who owned shares in the bank’s parent enterprise until last year, has denied any criminal conduct or ethical violations regarding his ties to the firm.
Impeachment Charges and Legal Proceedings
Senate President Basilio Núñez stated that Peña was found guilty of dereliction of duty. The official impeachment charges alleged that Peña engaged in severe conflicts of interest, improperly influenced regulatory mechanisms, diverted public pension capital, and took part in an institutional cover-up involving the central bank. Senator Rafael Filizzola characterized the event as the largest corruption scandal in the country’s democratic history.
Although Peña had offered his resignation on Thursday in a video message expressing his desire to protect citizens’ savings, senators chose to formally impeach him instead. Lead prosecutor Silvia Margarita Gonzalez Vester indicated that Peña is scheduled for questioning regarding accusations of breach of trust, influence peddling, and misappropriation of funds. Peña’s defense attorney, Ricardo Preda, dismissed the accusations as reckless and irresponsible.
Civil Unrest and Transitional Leadership
The seizure of Ueno Bank by the central bank of Paraguay sparked public outrage, causing an estimated three million depositors to lose access to their financial accounts. Massive lines formed at physical branch locations in the capital city of Asunción, leading to widespread street demonstrations across the country. Initial protests involved confrontations with law enforcement, who deployed water cannons and tear gas against crowds.
Following the impeachment vote, Vice President Pedro Alliana was sworn in to serve as interim president through 2028. Addressing the nation, Alliana committed to assisting affected citizens and pledged that those impacted by the financial collapse would receive full financial compensation.
Source: BBC News
