Former Paraguayan President Santiago Peña could face up to 15 years in prison if convicted in the Ueno Bank investigation, prosecutors said. The figure is a possible maximum, not a final sentence. (Foto: Instagram)
Paraguay’s former president Santiago Peña could face up to 15 years in prison in an investigation involving Ueno Bank, prosecutors said at a news conference Wednesday, November 11. Prosecutor Verónica Valdez said the potential maximum reflects multiple alleged crimes attributed to Peña and the combined penalties they could carry. The estimate is a possible sentence, not a final ruling.
Prosecutor Francisco Cabrera said former Ueno Bank directors could face prison terms of up to 12 years. He described that figure as an expected maximum based on the legal classifications prosecutors have established for the alleged offenses. The case also involves an investigation into César Manuel Astigarraga, the former head of technology company ITTI, whom authorities describe as a close associate of former Ueno executive Miguel Vázquez.
Prosecutors requested Astigarraga’s pretrial detention on Tuesday, November 10. The following day, prosecutor Ruth Benítez said authorities had not found him and confirmed he was in Paraguay. Benítez said he was at large and that investigators had searched his home and ITTI offices, collecting material related to the inquiry. Investigators suspect Astigarraga developed and managed businesses within the Vázquez group that may have been used to move funds of irregular origin. He is one of several people being investigated over suspected financial misconduct.
Prosecutors also said they had received an initial response from a company that stores data in the cloud. They are waiting for the company to send the requested material, which they say is relevant to the facts under investigation. The information received so far was only an initial response; prosecutors said the full contents they requested had not yet been delivered.
The investigation centers in part on Ueno Bank, which had been Paraguay’s largest digital bank, with about 2.9 million customers—roughly 40% of the country’s population. On November 3, the Central Bank suspended the institution’s operations after finding that its solvency ratio had fallen below half the required minimum. The ratio measures a financial institution’s ability to meet its obligations. Authorities are investigating suspicions of asset manipulation and loans to companies linked to the bank’s controlling group. Eight executives were arrested, including bank president Juan Gustale and Miguel Vázquez, its vice president and founder.
The investigation is unfolding amid Peña’s impeachment. On November 6, the Senate voted to remove him, with 44 votes in favor and one abstention; Vice President Pedro Alliana took over the country’s leadership. Prosecutors are investigating Peña over suspected irregularities involving the allocation of public funds and his relationship with Ueno Bank, as well as the conduct of other people linked to the bank and business group. After the impeachment process concluded, Peña was arrested. A court initially ordered him to remain under house arrest, then changed the measure to pretrial detention on November 7. On November 10, the Colorado Party expelled him. Its Conduct Tribunal, part of the National Republican Association, cited his conduct while in government and the impeachment process.
