Paraguayan President Santiago Peña Impeached Amid Banking Crisis
The Paraguayan parliament voted on Friday to remove President Santiago Peña from office, leaving the 47-year-old leader under house arrest as prosecutors investigate allegations of money laundering, illicit use of power, and self-enrichment, according to reports by lsm.lv. The impeachment proceedings began on Wednesday amid widespread unrest and the suspension of the country’s largest commercial bank, Ueno Bank, which has cut off access to funds for millions of citizens.
Ueno Bank Suspension Paralyzes Daily Life
The collapse and suspension of Ueno Bank have directly impacted roughly 60% of Paraguay’s adult population. More than half of the country’s adults currently cannot access their bank accounts, making it impossible for them to purchase food and other daily necessities. Retail volumes across Paraguay dropped by 80% as citizens found themselves unable to use their money. Ueno Bank experienced rapid growth in recent years, transforming into one of the largest commercial lenders in the country. Prosecutors suspect that growth occurred largely through the intervention of the ousted president. Peña’s personal assets include shares in Ueno Bank, and funds from several state-supervised pension funds were deposited into the institution under his administration.
Attorney General Launches Formal Investigation into Peña
The Paraguayan Attorney General’s Office launched a formal investigation into Peña on Thursday. Investigators are examining charges of money laundering, abuse of power, and illegal enrichment. Shortly after taking office, Peña appointed Carlos Carvalho Spalding, a former executive of Ueno Bank, as the head of the Central Bank of Paraguay. In the following years, Spalding permitted Ueno Bank to operate as a digital lender offering significantly higher interest rates than its competitors, drawing in a massive customer base. Under Paraguayan law, a voluntary resignation would have allowed him to secure a lifetime seat as a senator in parliament. Lawmakers refused to approve the resignation, choosing instead to carry the impeachment process through to its conclusion on Friday. Minutes after the parliamentary vote finalized his removal, the prosecutor’s office announced Peña’s arrest and subsequent house arrest. Prior to his downfall, Peña was one of the most prominent allies of former United States President Donald Trump in South America.
More on Santiago Peña
Ousted Paraguayan President Santiago Peña is under house arrest on suspicion of breach of trust. He was detained shortly after the Senate removed him from office following a bank collapse. https://t.co/EXWR8dAi2V
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