Paraguayan prosecutors began questioning former President Santiago Pena on Saturday over his alleged involvement in a banking crisis that led to his impeachment. Pena, who was removed from office on Friday, is being investigated for breach of trust, influence peddling, and embezzlement. He entered the attorney general's office in Asuncion through a side door and could be formally charged as early as Saturday afternoon.
Pena's impeachment came after the collapse of Ueno bank, one of the country's biggest lenders, which handled accounts of several state entities. The bank's demise affected almost three million depositors, including pensioners. Former Vice President Pedro Alliana has taken over as president, promising not to abandon those affected by the bank's collapse. Alliana is from the same right-wing Colorado Party as Pena.
The collapse of Ueno bank has sent shockwaves through the usually stable South American nation. Pena, a conservative former finance minister, had sold his stake in the group that controlled the bank last year. He had offered his resignation but lawmakers pressed ahead with impeachment proceedings to strip him of his political immunity.
Thousands of people took to the streets demanding their money back after the Central Bank took control of Ueno, citing fears for its solvency. Advance payments to an unspecified number of depositors began on Thursday afternoon. Pena was placed under house arrest minutes after his impeachment, and protesters have called for him to be held accountable.
The US has expressed support for Alliana, with US Assistant Secretary of State for Western Hemisphere Affairs Juan Pablo Segura calling Paraguay a "strategic partner, friend and ally of the United States". Segura said Washington looked forward to working with Alliana. Brazilian President Lula Inacio Lula da Silva also reacted to events in Paraguay, saying he looked forward to welcoming Alliana to Brazil soon.
Protests have continued in Asuncion, with some demonstrators expressing anger that Alliana, who is from the same party as Pena, would take over. "He's from the same team, he knew about it (the trouble at Ueno)," said Edson Vazquez. However, others have welcomed Pena's ouster, with Jessica Aquino saying "Justice has been done. Now we want him to give us back our money and go to jail".
Pena's removal is a further blow for US President Donald Trump's network of allies in South America. Alliana will serve out the remainder of Pena's term, which ends in 2028. The US has been closely watching developments in Paraguay, a key ally in the region.
Key points
- Pena faces charges of breach of trust, influence peddling, and embezzlement.
- Almost three million depositors were affected by the collapse of Ueno bank.
- Alliana has taken over as president, promising to support those affected by the bank's collapse.
