Former Paraguayan President Peña placed under house arrest — CBC World

In Paraguay, former President Santiago Peña was placed under house arrest on suspicion of breach of trust. This happened shortly after the Senate removed him from office over the collapse of Ueno Bank, linked to his government, CBC World reports.

All 44 senators present unanimously voted to remove Peña from office for improper performance of official duties. The decision was made three days after regulators took control of Ueno Bank. As a result, nearly 3 million customers lost access to their savings and bank cards.

Suspicions over public funds

Prosecutors ordered Peña to remain at home until he is transferred to the economic crimes and anti-corruption unit. The Attorney General's Office confirmed to the Associated Press that the former president is being held at his residence.

More current news is available on the UA.News Telegram channel Telegram.

Law enforcement officers also ordered the detention of former central bank chief Carlos Carvalho, who was appointed by Peña. Whether he was detained was unknown at the time. Lawmakers accused Peña of using political influence to direct hundreds of millions of dollars in public funds to Ueno, while regulators, they claimed, failed to respond to risky lending to related parties. Peña denies wrongdoing.

New president and protests

Vice President Pedro Alliana was sworn in as president and will serve until the end of the term in August 2028. Prosecutors are also investigating Alliana's actions, while lawmakers postponed an opposition initiative for his impeachment the previous day.

Peña submitted his resignation the previous day, but Congress did not accept it and continued the removal procedure. In the capital, Asunción, protesters demanded the return of frozen funds to Ueno depositors and accountability for those involved in the bank's collapse.