Paraguay’s President, Santiago Peña, has faced impeachment and now sits under house arrest following a significant banking collapse. This financial disaster has affected nearly 3 million people, representing approximately 60 percent of the country’s adult population. These individuals have lost access to their funds after a bank, closely associated with Peña’s administration, failed.
On Thursday, Peña attempted to resign amid impeachment proceedings initiated by Paraguay’s Chamber of Deputies. This move was in hopes of avoiding arrest, since former democratically elected Paraguayan presidents usually become senators for life, enjoying immunity from detention while in office. However, the lawmakers denied his resignation, thereby exposing him to legal proceedings in regular courts.
The charges against Peña include conflicts of interest, misuse of pension funds, and covering up institutional issues related to Ueno, one of Paraguay’s largest digital lenders. Following his impeachment on Friday, Peña was immediately placed under house arrest in Asunción, the capital.
Prosecutor Silvia González remarked that Peña “voluntarily allowed officers to enter and made himself available for all procedural purposes,” according to respected news outlet, Radio Ñanduti.
Peña is slated for questioning on Saturday concerning allegations of breach of trust, influence peddling, and misappropriation of funds.
Pedro Alliana, who served as Peña’s vice-president, was sworn in as Paraguay’s new president on Friday. He will hold the position until the presidential term concludes in August 2028.
This story is still unfolding with further updates anticipated.
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