Former Paraguayan President Peña taken for questioning after removal — PBS NewsHour
In Paraguay, former President Santiago Peña was taken to the Attorney General’s Office for questioning on Saturday, hours after the Senate unanimously removed him from office. As PBS NewsHour reports, police escorted Peña to the prosecutor’s office building in Asunción; he was not handcuffed.
Investigation after bank collapse
On Friday, Paraguayan prosecutors issued arrest warrants for Peña and former Central Bank chairman Carlos Carvalho. They are being investigated on suspicion of breach of trust and other offenses connected to the collapse of Ueno Bank.
Regulators took control of Ueno Bank three days before the Senate vote, after which nearly 3 million customers lost access to their savings. Peña was taken to a military base on Friday evening as hundreds of protesters gathered outside his home.
Lawmakers accused Peña of using political influence to direct hundreds of millions of dollars in public funds to the bank, as well as of regulators failing to respond to risky lending to related parties. The former president denies any wrongdoing.
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Change of power and compensation for depositors
Peña was replaced by Vice President Pedro Alliana, who began forming a new government on Saturday. Before his removal, Peña resigned, but Congress did not accept his resignation and continued the impeachment procedure. Opposition lawmakers insisted on his removal so that he could not leave office with immunity.
The Central Bank said that 1.2 million Ueno Bank customers have already received full or partial compensation for guaranteed deposits under Paraguayan law. Meanwhile, thousands of people demanding access to frozen funds and accountability for the bank’s collapse protested in Asunción; clashes occurred with police this week, with officers using rubber bullets and pepper spray.
Paraguay’s largest teachers’ union, which has more than 40,000 members, plans to begin an indefinite nationwide strike on Monday. It is demanding protection for public pension fund assets.
