Paraguay’s ousted president Santiago Peña placed under house arrest

Police detained Peña at his home in Asunción on Friday after the Senate voted to remove him. EFE reported that prosecutors had ordered his arrest on suspicion of breach of trust. Prosecutors told Reuters that potential charges were still being determined and could include influence peddling.

All 44 senators present voted to remove Peña after finding him guilty of poor performance in office, according to the Senate and EFE. The impeachment was a political proceeding, not a criminal conviction.

The accusations against Peña included conflicts of interest, manipulation of regulatory oversight and diversion of pension funds. Peña, who Reuters reported had been a shareholder in the bank’s holding company until 2025, denied wrongdoing and described the affair as a regulatory issue.

Peña had offered to resign before the vote. His lawyers represented him at the Senate hearing after senators rejected his request for an extra 72 hours to prepare his defence. One of his lawyers argued that the accusations attributed to Peña actions that belonged to other institutions.

The bank’s collapse has left some pensioners and other depositors unable to access their money, although Reuters reported that some account holders had begun recovering funds. Ueno had about 2.9 million customers, according to EFE.

Pedro Alliana, previously vice-president, was sworn in on Friday to complete the presidential term running to 2028. He said he would order immediate action to compensate affected savers.