Paraguayan Prosecutors Charge and Detain Ousted President Santiago Pena

Paraguayan prosecutors charged deposed former president Santiago Pena with breach of trust and administration for personal gain following the collapse of Ueno Bank.

Judge Humberto Otazu ordered Pena held at a military base after prosecutors asked a court to freeze his assets and send him to prison to guarantee compliance with the anti-corruption investigation. Nancy Salomon, the chief prosecutor for corruption and economic crimes, announced the charges during a press conference. The Senate voted unanimously on Friday to remove Pena from office, and senators subsequently appointed Pedro Alliana to serve out the remainder of the presidential term.

Regulators intervened in Ueno Bank on Tuesday, freezing the accounts of nearly three million customers and triggering the political crisis. The financial disruption generated major protests and threatened the savings of hundreds of thousands of account holders. Pena previously owned shares in Ueno Holding, the controlling company of the bank, before selling them last year.

Prosecutors state that Ueno Bank allegedly received irregular deposits and loans from public and pension entities between 2023 and 2026, while concurrently granting irregular loans to companies connected to the economic group controlling the bank.