In brief
Former Paraguayan president Santiago Peña was detained on a warrant issued by the Prosecutor’s Office amid allegations of embezzlement involving Ueno Bank. The bank’s collapse led to the freezing of accounts belonging to roughly 3 million Paraguayan customers. Peña had been recently impeached for alleged conflicts of interest with the bank before authorities issued the arrest request.
Former Paraguayan president Santiago Peña was taken into custody on Wednesday after the Prosecutor’s Office issued a warrant for his arrest on charges of embezzlement linked to the collapse of Ueno Bank.
The bank, which had about 3 million customers, saw its accounts frozen when the Central Bank placed the bank under external administration on November 3.
Police action followed a warrant filed by the Prosecutor’s Office, which accuses Peña of abuse of trust and of using his position to benefit Ueno Bank, according to TASS.
Peña had been impeached earlier that day by Congress. Election rules say former presidents become lifelong senators unless they are impeached, but his impeachment attempts remain contentious.
Supporters of Peña’s removal said the former president had ties to the bank that created a conflict of interest. Peña had announced his resignation a day earlier, though a quorum was lacking in Congress, preventing a vote on the resignation or a formal acceptance of the vote to remove him.
Paraguay’s population stands at about 7 million people, making the impact of the banking crisis large for the country’s citizens.
Because of the bank’s collapse, the savings and checks that 3 million Paraguayans could rely on were suddenly blocked, forcing many families to seek new financial solutions.
