Paraguay raids ex-president’s home: Why a bank crash brought down Pena
Summary
Paraguay’s former president Santiago Pena was arrested and charged after the collapse of Ueno Bank, which froze customer savings and triggered protests. Prosecutors allege that Pena used his office to direct public funds to the bank while holding a financial stake in its parent company; he denies wrongdoing. Vice President Pedro Alliana has taken over and says the government has begun reimbursing customers.Key Facts
- Paraguay’s Senate voted unanimously to remove Pena from office on Friday after rejecting his attempt to resign.
- A judge ordered Pena held in pretrial detention at a military facility while the investigation proceeds.
- Prosecutors charged Pena with breach of trust and administration for personal gain; each offense could carry up to 10 years in prison.
- Pena held shares in Ueno Bank’s parent company until March 2025.
- Prosecutors allege that Pena influenced government agencies and state-owned entities to deposit public money at Ueno despite concerns about its finances.
- Ueno held about $850 million in public funds by June, including money from the state pension system.
- The indictment says Pena received two Ueno loans totaling about $500,000 in 2024 to build his mansion.
- Alliana said the government had paid about $158 million to reimburse 1.2 million Ueno customers.
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