Paraguay President Impeached and Immediately Arrested Amid Banking Crisis
Santiago Peña is due to be questioned on Saturday over alleged breach of trust, influence peddling, and misappropriation of funds.
Paraguay's President Santiago Peña has been impeached and immediately placed under house arrest following the collapse of a bank linked to his administration, leaving nearly 3 million people—roughly 60% of the adult population—without access to their funds. Peña attempted to resign on Thursday, the day after impeachment proceedings were initiated by Paraguay's Chamber of Deputies, but before lawmakers voted unanimously to impeach him.
His resignation would have protected him from arrest, as democratically elected former presidents of Paraguay become senators for life and are generally not detained while in office. However, the lawmakers refused to accept his resignation, making him vulnerable to prosecution in the regular courts. The impeachment charges against Peña allege conflicts of interest, misuse of pension funds, and institutional cover-ups related to the digital lender Ueno, one of the country's largest banks.
Following his impeachment on Friday, Peña was taken into custody at his residence in Asunción, the capital city, and is scheduled to be questioned on Saturday regarding charges of breach of trust, influence peddling, and misappropriation of funds. Paraguay's vice-president, Pedro Alliana, was sworn in as the country's new leader on Friday and will hold office until the end of the presidential term in August 2028.
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