Paraguay’s ousted president charged over banking scandal

Paraguayan prosecutors commenced questioning former President Santiago Pena on Saturday in connection with alleged involvement in a banking crisis that led to his impeachment the previous day, a police source told AFP. Pena, who faces charges of breach of trust, influence peddling, and embezzlement, entered the Attorney General's office in the capital Asuncion through a side entrance around 11:00 am (14:00 GMT).

Christian Benitez, the prosecutor leading the investigation, stated that Pena might be formally charged as early as Saturday afternoon.

The impeachment of Paraguay's youngest-ever president came three days after the collapse of Ueno Bank, one of the nation's largest lenders. The bank's failure left numerous individuals without access to their accounts. Pena, who had connections to the group controlling the bank, had offered his resignation. However, lawmakers proceeded with impeachment proceedings to remove his political immunity that would have been preserved had he resigned.

He was subsequently replaced by former Vice President Pedro Alliana, who assured the nearly three million affected depositors, including pensioners, that their funds would be protected.

Public demonstrations erupted as thousands rallied for their money back after the central bank seized control of Ueno and suspended its operations due to concerns over its financial stability.