Paraguay’s prosecutors question ex-president over banking scandal

Paraguayan prosecutors began questioning former President Santiago Pena on Saturday over alleged involvement in a banking crisis, according to a police source. Pena faced charges of breach of trust, influence peddling, and embezzlement. He entered the attorney general's office in Asuncion through a side door around 11:00am local time. The prosecutor leading the investigation, Christian Benitez, stated that Pena could be formally charged as early as Saturday afternoon.

The impeachment of Pena followed the collapse of Ueno Bank, one of Paraguay's largest lenders. The bank's failure left millions of people without access to their accounts. Pena, who had connections to the group controlling Ueno, initially offered his resignation. However, lawmakers proceeded with impeachment proceedings to remove his political immunity.

He was succeeded by former Vice President Pedro Alliana, who pledged to assist the affected 3 million depositors, including pensioners. Thousands protested in the streets demanding reimbursement for their lost funds after the central bank seized control of Ueno and froze its accounts amid concerns over its stability.