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Paraguay’s ex-president Pena faces new charge over Ueno bank collapse
Paraguayan prosecutors have added a criminal association charge against former president Santiago Pena in their investigation into the collapse of digital bank Ueno. The case matters because prosecutors allege Pena used his office to channel public money to the bank while having financial ties to it; the collapse left customers unable to access their accounts and fuelled mass protests.
Pena, who was impeached and arrested last week, already faces breach of trust and self-dealing charges and is being held in pretrial detention at a military facility. Ueno held more than $800 million in public funds, and prosecutors say assets have been found abroad and may be frozen. Three former central bank officials were also arrested, while the Central Bank said it had returned savings to more than 1.8 million depositors.
In short
- Pena faces a new charge over Ueno’s collapse.
- The bank held more than $800 million in public funds.
- Savings have been returned to over 1.8 million depositors.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The new charge may be justified if prosecutors can show that Pena used public office to direct state funds to a bank in which he had financial interests, and that he acted with others to conceal or facilitate this. The scale of public money involved and the hardship faced by depositors make a thorough investigation and accountability important to public trust.
The case against
A serious charge is not proof of guilt, and Pena is entitled to a fair process and the presumption of innocence. The prosecution should establish reliable evidence of a criminal agreement and personal wrongdoing, rather than infer guilt from his office, financial ties or the bank’s collapse; pretrial detention should also be justified by specific risks.