Paraguay President Impeached, Placed Under House Arrest

Paraguay’s President Santiago Peña has been impeached and placed under house arrest following the collapse of Ueno Bank, a financial crisis that has left more than half of the country’s population unable to access their bank accounts.

Lawmakers, including members of Peña’s own party, unanimously voted to remove him from office on Friday, days after the bank collapsed.

The bank reportedly has links to Peña’s private business interests.

Peña had offered to resign on Thursday.

However, instead of accepting his resignation, senators proceeded with impeachment proceedings and charged him with misconduct, stripping him of the immunity normally granted to former presidents.

Peña, who held shares in the company that owned the bank until last year, has denied any wrongdoing.

The impeachment charges include allegations of conflicts of interest, interference in regulatory oversight, diversion of pension funds and involvement in an institutional cover-up linked to the central bank.

Prosecutor Silvia Margarita Gonzalez Vester said Peña is due to be questioned on Saturday over allegations of breach of trust, influence peddling and misappropriation of funds.

Following his removal, Vice-President Pedro Alliana was sworn in as interim president. He is expected to serve until 2028 and has pledged compensation for those affected by the financial collapse.

Addressing the public, Alliana said millions of people affected by the crisis would be fully compensated.