Former Paraguayan President Santiago Peña appeared at the Public Prosecutor’s Office in Asunción on Nov. 7 to give a statement in the Ueno Bank investigation. (Foto: Instagram)
Former Paraguayan President Santiago Peña appeared at the Public Prosecutor’s Office in Asunción on Saturday, Nov. 7, to give a statement in an investigation connected to the Ueno Bank crisis. Peña has been in custody since Friday night, Nov. 6, after a court order. The Public Prosecutor’s Office said he attended with his defense attorney, Ricardo Preda.
Peña was arrested by Paraguay’s National Police at his home in the capital after the Senate voted unanimously to impeach and remove him from office. His detention followed the loss of his political immunity. According to the account of the case, the judiciary found indications of breach of trust and other alleged crimes tied to the banking scandal, which has shaken the country this week.
The Public Prosecutor’s Office opened an investigation after opposition lawmakers filed a complaint. They accused Peña of illicit enrichment, money laundering, corruption and administrative fraud. The accusations remain under investigation. Peña, 47, was elected president in 2023 and held shares in a company connected to Ueno Bank until March 2025.
After Peña took office, the financial institution received large deposits from public agencies, totaling about $850 million, or approximately 4.5 billion Brazilian reais, according to the report. The Central Bank of Paraguay deemed Ueno Bank insolvent, meaning it could not meet its financial obligations. The bank’s operations were suspended on Nov. 3, and the central bank began a resolution process.
The investigation into Ueno Bank also concerns its management and loans to companies linked to the group that controlled the institution. Authorities suspect those loans may have damaged the bank’s assets. The Public Prosecutor’s Office requested a criminal investigation of the bank and the arrest of its executives. Carlos Carvallo, who had led the central bank since 2023 and previously headed Ueno Bank, resigned from his central bank post.
Peña had also submitted a resignation request to Congress amid the crisis, but it was not accepted. On Friday, before the Senate concluded its impeachment session, he posted a farewell message on social media and said he had decided to resign to prevent further harm to the country. He said his continued presence in the presidency could deepen political divisions and instability. The Senate later voted unanimously to impeach him.
