Paraguay’s former president faces prosecutors after his removal over bank collapse

Paraguay's former president, Santiago Peña, has been escorted to the attorney general's office for questioning just hours after being removed from office by Congress. The ouster came in response to the collapse of major bank Ueno Bank, which has left hundreds of thousands of people without access to their accounts.

The Central Bank of Paraguay is working to compensate affected individuals, but the situation has sparked a political crisis. Just days after the bank's seizure, President Peña was replaced by Vice President Pedro Alliana. Lawmakers have accused Peña of misusing his political influence to allocate public funds to the bank while regulators overlooked risky lending practices.

Peña has denied any wrongdoing, but opposition lawmakers insisted on his removal to prevent him from leaving office with immunity. Thousands of protesters demanding access to their frozen savings and accountability for Ueno's failure have clashed with police throughout the week. Public outrage has intensified, with the largest teachers' union planning an indefinite national strike to demand protection for public pension funds.