Paraguay's Peña Faces Charges and Detention After Ueno Bank Collapse

The collapse of Ueno Bank cut millions of people off from their money and sparked angry protests, according to Arab News. What began as a banking emergency quickly became a crisis for Santiago Peña's presidency.

The investigation centres on the relationship between the bank and public money. The Hindu reported that Peña is accused of steering millions in government deposits to Ueno and concealing its financial troubles despite warnings about loans and solvency.

NYT World News described prosecutors' allegation as the funneling of nearly a billion dollars in government funds to the bank while its executives made reckless insider loans. These are allegations, not findings of guilt.

On November 6, the Senate removed Peña from office. Although the earlier account of this story described a resignation, France24 reported that senators impeached him rather than accepting his offer to resign.

Pedro Alliana was then sworn in as president. He had served as vice president under Peña, according to nu.nl. Peña was placed under house arrest following his removal, NPR : National Public Radio reported.

On November 7, prosecutors charged Peña with breach of trust and administration for personal gain and asked a court to jail him pending trial, according to CBC Top Stories. A judge subsequently ordered his detention, citing a flight risk, RT en Español - Noticias reported.

The inquiry also reached Carlos Carvallo, the former president of Paraguay's central bank. Infobae reported that prosecutors charged both men, while CNN Brasil reported that a judge ordered Carvallo's preventive detention.

On November 8, investigators searched Peña's summer residence, according to CNN Brasil. Infobae placed the property in San Bernardino and reported that prosecutors and national police carried out the search.

Peña is no longer simply under house arrest. DIE ZEIT reported that he was being held in a military barracks because of a possible flight risk. France24 described his transfer to a military facility as being for his own safety. The reports give different explanations for the move.

The investigation has expanded to his assets and property. RT en Español - Noticias reported an order restricting Peña's and Carvallo's assets and freezing funds and financial products. In coverage published November 9, La Nacion reported that investigators found a hidden vault during the search of one of Peña's homes.

For depositors, the central problem remains access to their money. NPR - Middle East reported on November 9 that millions had been left locked out of their funds.

The criminal case turns on whether prosecutors can substantiate the alleged diversion of public deposits and concealment of Ueno's financial problems. The property searches form part of that continuing investigation, according to The Hindu.

The other unresolved question is when depositors will regain access to their money. The supplied coverage gives no confirmed repayment timetable or recovery plan.