Paraguay’s president, Santiago Peña, has been charged and placed under house arrest following the collapse of a digital bank linked to his private business interests. Peña was arrested Friday minutes after lawmakers, including those from his own party, voted unanimously to remove him from office over a deepening crisis sparked by the collapse of Ueno Bank earlier this week. He had offered to resign on Thursday. Instead of accepting his resignation, senators impeached Peña and accused him of misconduct, meaning he was stripped of the immunity usually granted to former presidents. Peña, who until last year owned shares in the company that owns the bank, has denied any wrongdoing. The demise of the digital bank has left more than half of Paraguay’s population without access to their savings after they were confiscated by Paraguay’s central bank. It is estimated that three million depositors are still unable to access their savings and pensions, causing a widespread crisis. protests particularly in the capital, Asunción. The impeachment charges that led to Peña’s ouster alleged that he had conflicts of interest, manipulated regulatory oversight, diverted pension funds and participated in an institutional cover-up involving the central bank. Peña will be questioned Saturday on accusations of breach of trust, influence peddling and embezzlement, said prosecutor Silvia Margarita González Vester. Peña’s impeachment was approved with 44 of 45 senators voting in favor of it. One legislator was absent. Afterwards, Senate President Basilio Núñez said Peña was found guilty of “dereliction of duty.” Paraguayan Vice President Pedro Alliana was then sworn in as interim president. “Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated,” said Alliana, who will serve as president until 2028.
