In a dramatic turn of events, former Paraguayan President Santiago Peña was formally charged after spending the morning at the attorney general’s office in Asunción. The charges follow his impeachment earlier this week over allegations that he used public funds to bolster the digital bank Ueno, which collapsed and left nearly half the country unable to access their savings.
Peña, who was placed under house arrest on Friday, faces accusations of breach of trust and administration for personal gain. The scandal centers on the injection of more than $800 million in public money into Ueno, a move that critics say was facilitated by Peña’s political influence and a lack of regulatory oversight.
Key allegations include Peña’s appointment of Carlos Carvallo—formerly an executive at the company that became Ueno—as head of Paraguay’s central bank in 2023. Carvallo has also been charged with breach of trust and false documentation. Prosecutors are seeking pretrial detention for both men.
The bank’s collapse triggered widespread protests across Paraguay. Thousands marched, demanding access to their deposits, and some demonstrations turned violent as protesters clashed with police. The central bank reported that 1.2 million customers had received partial or full reimbursement of insured deposits, yet many remain frustrated and still await full restitution.
Peña, who held a stake in Ueno’s parent company until March 2025, denies wrongdoing, asserting that the bank’s issues were regulatory in nature. He had offered his resignation on Thursday, but lawmakers rejected it, proceeding with impeachment to strip him of the political immunity he would have enjoyed had he stepped down.
Pedro Alliana, who succeeded Peña as president on Friday, has pledged to assist those affected by the banking crisis. However, Alliana himself is under investigation in connection with the collapse, adding another layer of complexity to Paraguay’s political landscape.
Source: Al Jazeera
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