Paraguay’s President Santiago Peña impeached and placed under house arrest
Paraguay’s President Santiago Peña has been removed from office following a unanimous Senate vote, bringing an end to his presidency after a financial scandal involving the collapse of digital bank Ueno triggered a major political crisis.
Peña was placed under house arrest on Friday while prosecutors determine the charges he could face, Reuters reported. The decision followed an impeachment trial in which all 44 senators voted to remove him from office.
The crisis was fueled by the collapse of Ueno Bank, which reportedly left nearly 3 million people without access to their savings, representing approximately 60% of Paraguay’s adult population.
The bank was liquidated by the country’s Central Bank, while allegations of financial misconduct and government involvement led to growing public anger.
Thousands of people gathered outside Congress following the Senate decision, celebrating Peña’s removal and demanding answers over their lost savings. Police maintained a security cordon outside the former president’s residence as protesters also gathered there.
Peña had attempted to resign before the impeachment vote, but lawmakers rejected the move. His legal team also challenged the proceedings, arguing that they had been given insufficient time to prepare a defense. The Senate nevertheless continued with the trial and voted unanimously to dismiss him.
Vice President Pedro Alliana was sworn in as the country’s new president on Friday night. He is expected to remain in office until Aug. 15, 2028, completing the remainder of Peña’s term.
The Public Ministry has opened multiple investigations into alleged illicit enrichment, money laundering, influence peddling and abuse of power connected to the Ueno Bank scandal. Alliana has also faced separate allegations involving the hiring of family members in government positions.
Peña, 47, came to power in 2023 as a member of the conservative Colorado Party. His removal represents a major political setback for the ruling party, which had previously supported his rise to the presidency.
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Ella Rae Greene, Editor In Chief
