Search at Santiago Peña’s Home Finds Secret Passage and Armored Door

Paraguayan authorities found a concealed passage and an armored door inside former President Santiago Peña’s residence during a search and seizure operation on Sunday, Nov. 8. The search took place as investigators examine alleged financial fraud involving Banco Ueno.

Videos published by Paraguayan media showed that the passage was hidden in a wall. After entering it, investigators encountered an armored door protected by at least four security measures: a passcode, facial or iris recognition, a fingerprint reader, and multilock keys. Investigators had not opened the door as of Sunday night and did not know what was behind it.

The operation at the home was still underway Sunday night. The residence is in San Bernardino, one of Paraguay’s main vacation destinations, and is also under scrutiny by authorities. Paraguayan media have reported that construction of the home may have cost about 6 million Brazilian reais, based on the current conversion from Paraguayan currency. Investigators are examining the funds used for the property; authorities suspect they may have come from loans issued by Banco Ueno.

Peña was impeached on Friday, Nov. 6, and is being held in preventive detention as part of the investigation into Banco Ueno, which was liquidated in Paraguay. He is being investigated for breach of trust, influence peddling, and administration for personal gain.

The Central Bank of Paraguay shut down Banco Ueno after identifying liquidity problems. The central bank’s president and two other directors resigned. Carlos Carvallo, who led Banco Ueno before Peña appointed him to head the central bank, is also detained and under investigation. Peña was a shareholder in the bank’s parent holding company during the first two years of his term. At least eight Banco Ueno executives are also detained and being investigated in the case.