Former Paraguayan President Santiago Peña faces an expanded investigation that now includes an allegation of criminal association in the Ueno Bank case. (Foto: Instagram)
Paraguay’s Public Prosecutor’s Office added criminal association to the offenses under investigation against former President Santiago Peña on Friday, November 13, in the Ueno Bank case. Peña is in pretrial detention at a military facility and also faces allegations of breach of trust and managing an organization for personal benefit. Investigators say he may have led the alleged criminal association.
The expanded accusation came about a week after Congress removed Peña from office amid a financial crisis triggered by the collapse of the digital bank. Prosecutors are seeking to establish whether he took part in alleged irregularities involving Ueno Bank and companies tied to its controlling group. The new allegation adds to the initial accusations, which identified Peña as an instigator of breach of trust and as responsible for management for personal benefit.
Peña, a 47-year-old economist, became president in 2023. Before taking office, he held a stake in the holding company linked to Ueno Bank until March 2025. His business ties to the bank’s controlling group have become a central focus of the allegations behind the investigation, particularly because his ownership continued while he was serving as president.
The political crisis began after Paraguay’s central bank intervened in Ueno Bank. The digital institution left millions of customers unable to access their accounts. The disruption also affected money held by pension funds and government accounts, prompting protests in Asunción and intensifying pressure on the government. The regulator identified problems with credit operations, irregularities in the accounting of assets and insufficient capital to keep the bank operating.
On November 5, Peña announced that he would leave the presidency, saying his decision was intended to protect national stability and democratic institutions. His announcement did not halt the impeachment proceedings, which continued in Congress. Legislators chose to proceed with the political trial; a voluntary departure could have allowed Peña to take a lifetime seat in the Senate, a position that would have provided parliamentary immunity.
Congress completed the impeachment process on November 6 and confirmed Peña’s removal for poor performance of his duties. Vice President Pedro Alliana then took over to finish the term, which is scheduled to end in August 2028. The investigation also includes former Central Bank of Paraguay President Carlos Carvallo and other members of the institution.
