Paraguay President Peña under investigation over bank collapse, faces removal from office

Paraguay’s President Santiago Peña is facing a criminal investigation and a Senate trial that could remove him from office after the collapse of Ueno Bank triggered a political crisis. The affair has split his ruling Colorado Party and raised questions about government oversight and the closeness between political leaders, regulators and business interests.

Peña offered to resign on Thursday, but both houses of Congress rejected the offer; the lower house voted unanimously to impeach him, and the Senate chose to proceed with a trial. Prosecutors have ordered three investigations into oversight of the bank, the handling of its failure and public funds deposited there. Ueno said it held about $800 million in public deposits last month, and more than 60% of Paraguay’s adults were its customers; the collapse has left depositors, retirees and workers struggling to recover savings and wages.