Paraguay’s Senate Resumes Santiago Peña Impeachment Proceedings Amid Ueno Bank Allegations

Paraguay’s Senate is scheduled to resume impeachment proceedings against President Santiago Peña on Friday, Nov. 6. The Chamber of Deputies approved opening the case even after Peña announced he would resign. The allegations include a conflict of interest tied to his past connections with the group that controlled Ueno Bank.

On Thursday, Nov. 5, senators heard from seven lawmakers who presented the accusations against Peña. They allege he favored Grupo Vázquez, which controls Ueno. Peña held shares in the group until March 2025. He is also accused of failing to ensure proper oversight by the Central Bank of Paraguay. Carlos Carvallo, the bank’s previous president, had led the digital bank until 2023.

The accusations also link Peña to damage to confidence in the financial system and alleged improper intervention in IPS, the institution that manages workers’ pensions and health care. Ueno Bank administered nearly 4.5 billion Brazilian reais in public funds, including pension resources. The case also includes indications of alleged illicit enrichment.

The Central Bank of Paraguay ordered Ueno Bank into resolution on Tuesday, Nov. 3, citing a severe deterioration in the institution’s solvency ratio. The bank had 2.9 million customers, or about 40% of Paraguay’s population. Thousands of people took to the streets after the decision, calling for Peña to leave office.

On Wednesday, Nov. 4, a group of lawmakers submitted an impeachment petition. The following day, Peña announced his resignation in a video posted to social media, saying, “No position can be more important than the well-being of Paraguay.” The Chamber of Deputies nevertheless approved opening the impeachment case, and the Senate began proceedings on Thursday.

The Senate summoned Peña to present his defense on Friday. Afterward, lawmakers are expected to review the evidence, hear arguments from both sides and hold a roll-call vote.