Former Paraguayan Central Bank chief Carlos Carvallo told prosecutors he feared for his life after authorities ordered his arrest, according to a report. (Foto: Instagram)
Carlos Carvallo, former head of Paraguay’s Central Bank, told the country’s prosecutor’s office on Saturday, Nov. 8, that he feared for his life, according to the report. The statement came after authorities ordered his arrest. When asked whether he had received threats, Carvallo did not answer.
Carvallo, who previously led Banco Ueno, has been held since Nov. 7 at the Agrupación Especializada, a facility in Asunción operated by an elite unit of Paraguay’s National Police. He reportedly remained silent during questioning and declined to say whether anyone had threatened him or whether he had heard rumors that his physical safety was at risk. The account was attributed to ABC TV.
Carvallo is being investigated in the same case as former Paraguayan President Santiago Peña. Prosecutors accuse him of breach of trust, administering funds for personal gain and producing public documents containing false information. The investigation concerns the collapse of Banco Ueno, one of Paraguay’s largest banks. Prosecutors allege Carvallo used his position at the monetary authority to conceal reports about the bank’s actual financial condition.
The Central Bank ordered Banco Ueno’s liquidation on Nov. 3, saying the institution was insolvent and unable to meet its financial obligations. Paraguay’s prosecutor’s office also requested a criminal investigation into the bank and sought the arrest of two of its executives.
The investigation includes suspicions about the bank’s management and loans to companies linked to its controlling group, which prosecutors say may have weakened the bank’s assets. The prosecutor’s office also approved a request to investigate alleged financial crimes involving Peña. Amid the crisis, Peña was impeached and arrested, according to the report, adding a political crisis to the banking turmoil.
