Former Paraguayan President Santiago Peña could face up to 15 years in prison if convicted of the alleged offenses in the Ueno Bank investigation, prosecutors said. (Foto: Instagram)
Former Paraguayan President Santiago Peña could face up to 15 years in prison in connection with the investigation into Ueno Bank, prosecutors said at a news conference on Wednesday, Nov. 11. Prosecutor Verónica Valdez said the maximum reflects multiple alleged offenses attributed to Peña. She said the combined charges could result in a sentence of up to 15 years.
Prosecutor Francisco Cabrera said former Ueno Bank executives could face sentences of up to 12 years. “We are discussing a potential sentence of up to 12 years for these offenses, based on the legal classifications that have been established,” Cabrera said. Prosecutors presented the estimates as possible penalties, not as sentences already imposed.
The prosecutors also provided an update on the investigation of César Manuel Astigarraga, former head of technology company ITTI and a person described as a close associate of Miguel Vázquez, a former Ueno Group executive. The Public Ministry requested Astigarraga’s pretrial detention on Tuesday, Nov. 10. On Wednesday, prosecutor Ruth Benítez said authorities had not found him and that he was in Paraguay. She said investigators searched his home and ITTI offices and collected materials related to the case. “He is a fugitive, and he is in the country,” Benítez said.
According to investigators, Astigarraga was responsible for developing and managing ventures associated with the Vázquez group. Authorities suspect those businesses may have been used to move funds from irregular sources. Astigarraga is among those under investigation in a case involving suspected financial wrongdoing. Prosecutors also said a cloud data-storage company had sent an initial response to a request and that investigators were awaiting the requested material. The Public Ministry said the information sought relates to the matters under investigation.
Ueno Bank had been Paraguay’s largest digital bank, with about 2.9 million customers, or roughly 40% of the country’s population. The Central Bank suspended its operations on Nov. 3 after finding that its solvency ratio was below half the required minimum. The ratio measures a financial institution’s ability to meet its obligations. Investigators are examining suspicions of asset manipulation and loans to companies linked to the bank’s controlling group. Eight executives have been arrested, including bank president Juan Gustale and Miguel Vázquez, its vice president and founder.
The investigation is unfolding alongside Peña’s impeachment. On Nov. 6, the Senate approved his removal by 44 votes, with one abstention, and Vice President Pedro Alliana took over as head of state. Peña is under investigation over suspected irregularities in the allocation of public funds and his relationship with Ueno Bank; prosecutors are also examining other people connected to the bank and the business group. After the impeachment process concluded, Peña was arrested. A court initially ordered him placed under house arrest, then ordered pretrial detention on Nov. 7. On Nov. 10, he was expelled from the Colorado Party. The Conduct Tribunal of the National Republican Association cited his conduct while in government and the impeachment process as the basis for the decision.
