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Paraguay’s ousted president faces prosecutors after his removal over bank collapse
Paraguay’s former president Santiago Peña appeared before prosecutors on Saturday, hours after Congress removed him over his alleged links to the collapse of Ueno Bank. The investigation and bank failure have triggered the country’s biggest political crisis in more than a decade, amid public anger over frozen savings and demands for accountability.
Prosecutors ordered Peña’s arrest and that of former Central Bank chief Carlos Carvallo over alleged breach of trust and other offences; Peña denies wrongdoing. Regulators seized Ueno Bank three days earlier, blocking nearly three million customers from their accounts, while the Central Bank said 1.2 million had received partial or full reimbursement of insured deposits. Vice-President Pedro Alliana replaced Peña, and a national teachers’ strike is planned for Monday over concerns about public pension funds.
In short
- Peña faces prosecutors after Congress removed him.
- Ueno’s collapse froze access to nearly three million accounts.
- The Central Bank says 1.2 million customers have been reimbursed.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of Peña’s removal could argue that the alleged links to Ueno Bank’s collapse, the scale of frozen savings and the need to protect public pension funds demand urgent political accountability. Removing him may help restore public confidence and allow investigators to examine whether officials failed in their duties without the president remaining in office.
The case against
Those opposing removal could argue that allegations are not proof and that Peña denies wrongdoing, so prosecutors should establish the facts through due process before Congress imposes the gravest political sanction. A removal driven by public anger during a banking crisis could weaken institutional stability and risk making political accountability appear to substitute for a fair investigation.
Cybersecurity Government Politics Technology