Paraguay’s Public Prosecutor’s Office searched the presidential residence in Asunción on Nov. 12 as part of an investigation into Ueno Bank’s collapse and former President Santiago Peña’s alleged role. (Foto: Instagram)
Paraguay’s Public Prosecutor’s Office conducted a search and seizure operation at the presidential residence in Asunción on Thursday, Nov. 12, as part of an investigation into the collapse of Ueno Bank and the alleged role of former President Santiago Peña. The bank’s crisis led to Peña’s impeachment and arrest.
Prosecutors said the inquiry is examining Peña’s suspected involvement in breach-of-trust offenses as an instigator and self-dealing in the management of the bank as a perpetrator. Investigators suspect he used his political influence to benefit the financial institution, in which he held shares until 2025 as part of its controlling group.
The authorities also arrested Holger Insfrán, the Central Bank of Paraguay’s banking superintendent. He is suspected of failing to properly oversee the financial sector. Manuel Astigarraga, an executive described as the right-hand man of Ueno Bank chief Miguel Vázquez, appeared before authorities Thursday morning. Vázquez is also in custody.
In all, 10 bank executives and Carlos Carvallo, a former Central Bank president, have been detained in two parallel investigations. Prosecutors said Wednesday, Nov. 11, that Peña could face up to 15 years in prison in connection with the Ueno Bank case.
The bank’s crisis became public on Nov. 3, after serious solvency problems were identified. Intervention by the Central Bank left about 3 million customers—roughly half the country’s population—unable to access their deposits. The episode prompted mass demonstrations and a political crisis that culminated in Peña’s impeachment and arrest. The 47-year-old was arrested on Friday, Nov. 6; the following day, a court ordered his pretrial detention and sent him to a military regiment in the capital.
Investigators are also examining whether Peña used public funds to benefit the bank, which was part of the group he controlled. The bank accumulated more than $850 million in public funds over five years. On Tuesday, Nov. 10, prosecutors searched Peña’s personal residence in Asunción and seized documents, cellphones, computers and other electronic devices. In a separate search at his mansion in San Bernardino, about 50 miles from Asunción, investigators found a hidden room containing a safe. Peña showed them how to open it, but it was empty. After Peña left office, then-Vice President Pedro Alliana assumed the presidency.
