Former Paraguayan President Santiago Peña was charged with fraud involving public funds and interference in oversight of Ueno Bank. (Foto: Instagram)
Paraguay’s Public Prosecutor’s Office charged former President Santiago Peña on Saturday, Nov. 7, accusing him of fraud involving public funds and interference in oversight of Ueno Bank. Prosecutors also charged former Central Bank President Carlos Carvallo and asked that both men remain in custody.
Peña was arrested Friday night, Nov. 6, after Paraguay’s Congress completed the impeachment process amid a banking crisis affecting the country. Carvallo turned himself in to police in Asunción. Peña testified at the prosecutor’s office on Saturday morning.
In a statement, prosecutors said Peña is accused of acting in his own interest in connection with Ueno Bank while he was in office. A fund linked to Peña was among the financial institution’s owners. The Central Bank had intervened in the bank, which closed its doors at the beginning of November.
Prosecutors also allege that Peña interfered with regulatory oversight of the bank and influenced public pension funds’ investments in the institution, which could total $850 million. Carvallo is accused of producing false documents about Ueno Bank’s condition and acting in his own interest; he is also linked to the digital bank. Prosecutors asked for both men’s detention to be converted to preventive detention and sought access to their banking, tax, asset and corporate records.
