Paraguay President Santiago Pena placed under house arrest after impeachment
The removal of Pena follows the collapse of Ueno Bank, which has left approximately 30 lakh people unable to access their money.
Paraguayan President Santiago Pena was placed under house arrest on Friday following his impeachment from office. According to Firstpost, the move comes amid a banking crisis involving the collapse of Ueno Bank, a major institution tied to his administration.
The Senate removed Pena after 44 senators voted in favour of impeachment, with one senator absent. Senate President Basilio Nunez stated that Pena was found guilty of poor performance in his duties. The impeachment process strips the former president of his parliamentary immunity and lifetime Senate membership.
The crisis began after the Central Bank took control of Ueno Bank on Tuesday due to solvency concerns. This has prevented around 30 lakh customers from accessing their funds or using bank cards. Opposition lawmakers have alleged that Pena used his influence to deposit hundreds of millions of dollars in government funds into the bank.
Pena, who previously held a stake in Grupo Vazquez, which controlled Ueno, has denied allegations of a conflict of interest. In a video statement, the 47-year-old apologised, saying it was never his intention to betray the public trust. The Attorney General is currently investigating him regarding the supervision of the bank and the placement of public funds.
Vice-President Pedro Alliana took the oath of office as president on Friday and will serve until August 2028. Meanwhile, the Central Bank's Deposit Guarantee Fund has begun making advance payments of up to US $1,600 to certain eligible depositors.