Former Paraguayan President Santiago Peña appeared at the Public Ministry in Asunción to give a statement in an investigation tied to Ueno Bank. (Foto: Instagram)
Former Paraguayan President Santiago Peña appeared at the Public Ministry’s headquarters in Asunción on Saturday, Nov. 7, to give a statement in an investigation tied to the Ueno Bank crisis. He had been in custody since the previous evening, following a court order. The Public Ministry said Peña appeared with his defense attorney, Ricardo Preda.
Peña was arrested at his home in the capital by the National Police on Friday, after Paraguay’s Senate voted unanimously to impeach and remove him from office. He lost his political immunity after his ouster. The court said it had found indications of breach of trust and other possible crimes related to the banking scandal, according to the report.
Prosecutors began investigating Peña after opposition lawmakers filed a complaint accusing him of illicit enrichment, money laundering, corruption and administrative fraud. The allegations have not been established as fact. The 47-year-old, elected president in 2023, held shares in a company linked to Ueno Bank until March 2025. After he took office, the financial institution received large deposits from public agencies totaling about $850 million, equivalent to roughly 4.5 billion Brazilian reais.
The Central Bank of Paraguay halted Ueno Bank’s operations on Nov. 3, deeming it insolvent and beginning a resolution process. Insolvency means the institution cannot meet its financial obligations. Prosecutors sought a criminal investigation of the bank and the arrest of its executives. The inquiry includes suspicions about the bank’s management and loans to companies linked to its controlling group that may have weakened the institution’s assets.
Carlos Carvallo, who had led the central bank since 2023, resigned. Before taking the central bank position, he had been president of Ueno Bank. Peña was also a shareholder in Ueno Holding, a company connected to the bank’s controlling group, until March 2025.
On Friday, before the Senate completed its session, Peña posted a farewell message on social media and said he had decided to resign to prevent further harm to the country. He said his continued presidency could deepen political divisions and instability. His request to resign was not accepted; the Senate instead unanimously approved his impeachment.
