In brief
Following a warrant from the Prosecutor’s Office, police in Paraguay detained former President Santiago Peña as investigations into alleged embezzlement at Ueno Bank intensified. Peña had been impeached earlier that day, a move that removes his automatic status as a lifelong senator. The Ueno case, which saw accounts of about 3 million customers frozen, has become a flashpoint in Paraguay’s banking crisis.
Police in Paraguay detained Santiago Peña on Tuesday after a warrant issued by the Prosecutor’s Office was enforced, escalating the probe into alleged fraud at Ueno Bank, the digital lender whose accounts of roughly 3 million customers were frozen in early November, TASS reported. The detainment follows Peña’s impeachment, a step that removes the ex‑president’s automatic lifelong senator status under the constitution.
The Prosecutor’s Office filed charges of abuse of trust and accused Peña of embezzling funds through Ueno Bank, according to a report that cites the paper ABC Color and the publication Ultima Hora. Peña had publicly indicated that he intended to resign the day before, but a lack of parliamentary quorum halted a formal resignation vote, the sources note.
The collapse of Ueno Bank prompted the Central Bank to place the institution under external administration on November 3, freezing its accounts in an effort to preserve depositor funds. The bank’s failure has been described as a major blow to Paraguay’s finance sector, with the country’s population standing at approximately 7 million people.
Supporters of Peña’s removal have cited a conflict of interest stemming from alleged ties to Ueno Bank. The case has drawn international attention to regulatory gaps in Paraguay’s digital banking system.
While the full scope of the alleged embezzlement remains under investigation, the detention marks a significant development in the legal proceedings against the former president.
