Paraguay's Santiago Peña Ordered Into Detention After Impeachment Over Bank Collapse

Ueno Bank's collapse cut millions of people off from their savings. According to Mint, nearly half of Paraguay's six million people were locked out of their money.

The political scandal centres on the bank's relationship with the government. NDTV News reported that lawmakers accused Santiago Peña of using his influence to steer hundreds of millions of dollars in public funds into Ueno while regulators overlooked risky insider lending. Peña denied wrongdoing.

On November 6, the Senate removed Peña from office. RTBF reported that all 44 senators present, out of a chamber of 45, voted against him. The coverage describes an impeachment and removal, rather than a resignation.

Pedro Alliana, previously vice president, was sworn in as his successor that Friday, according to Japan Times. Le Monde also reported the transfer of power following Peña's removal.

Authorities initially placed Peña under house arrest shortly after the Senate vote, AP reported. The political proceedings were followed by a criminal investigation into his role in the banking crisis.

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. NPR reported that he appeared before prosecutors.

A judge subsequently ordered Peña into pretrial detention. RT en Español reported that the court cited a flight risk. Reporting published on November 8 by Infobae confirmed that he had been in pretrial detention since Saturday.

Peña is no longer under house arrest: the latest coverage places him in pretrial detention. Die Zeit reported that he was being held in a barracks because of a possible flight risk. The charges remain allegations, not findings of guilt.

The investigation also reaches beyond Peña. Infobae reported charges against former Central Bank president Carlos Carvallo, while CNN Brasil reported that a judge ordered Carvallo's pretrial detention on November 7.

Alliana has taken office, but the financial emergency remains unresolved in the supplied reporting. Millions were cut off from their money, and the crisis sparked major protests, according to Arab News.

The criminal proceedings now concern whether prosecutors can prove that Peña used public office for personal benefit. The accusations reported by NDTV News focus on public money placed in Ueno and regulatory treatment of insider lending; Peña denies wrongdoing.

For depositors, the immediate unanswered question is when they can recover access to their savings. The supplied coverage gives no confirmed repayment timetable or recovery plan.