Paraguayan prosecutors seek detention of ex-president Peña — CBC World

In Paraguay, prosecutors have charged former President Santiago Peña with breach of trust and management in personal interests. Prosecutors have also asked the court to keep Peña in custody pending trial, CBC World reports.

Charges after impeachment

The charges were brought the day after Peña’s impeachment amid the collapse of digital lender Ueno. According to prosecutors, the former president used his position to influence decisions by state bodies and state-owned enterprises on keeping significant amounts of public funds in Ueno deposits, despite his financial ties to the lender.

Prosecutors believe these ties created a conflict of interest, as Peña allegedly encouraged, facilitated, or influenced decisions beneficial to Ueno. Until March 2025, he was a shareholder in the lender’s holding company. Peña denied any wrongdoing and said the bank’s problems were a matter of regulatory oversight.

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Case of the former central bank chief

Prosecutors have also charged former central bank chief Carlos Carvalho. He is accused of breach of trust, falsifying official documents, and management in personal interests; prosecutors are also seeking his pretrial detention. Carvalho left his post as central bank chief earlier this week and headed Ueno until 2023.

After Peña’s removal, Vice President Pedro Alliana became president and is to complete the term until August 2028. According to prosecutors, each of the two charges against Peña could carry up to 10 years in prison. The central bank said that under the state deposit guarantee system, nearly 1.2 million depositors received payments equivalent to $160 million.