Impeached Paraguay leader charged over shock implosion of bank

Paraguayan prosecutors have charged former President Santiago Pena with breach of trust and mismanagement for personal gain, following the collapse of the digital bank Ueno Bank SA. Pena, Paraguay's youngest-ever president, was removed from office by the Senate three days after the bank's implosion, which left millions of account holders without access to their funds and sparked widespread protests.

Despite offering to resign, Pena was instead impeached by lawmakers, thereby forfeiting his immunity. In a swift series of events, Pena was brought before prosecutors on Saturday and charged with the offenses, having held shares in Ueno Holdings, the controlling company of Ueno Bank, until last year. Prosecutors seek his arrest and the freezing of his and former Central Bank President Carlos Carvallo's assets, with Carvallo also facing charges related to the same incidents.

Carvallo will be questioned by prosecutors later on Saturday. The collapse of Ueno Bank, which managed the accounts of numerous state entities and pension funds, has sent shockwaves through Paraguay, with thousands of people taking to the streets demanding compensation. US President Donald Trump's ally in the region, Paraguay, now faces additional challenges with the installation of former Vice-President Pedro Alliana as interim President, who is from the same right-wing Colorado Party as Pena.