Bankskandal: Paraguays Ex-Präsident Peña muss in Untersuchungshaft

Paraguayan former President Santiago Peña has been taken into custody in connection with a bank scandal. Judge Humberto Otazú ordered his detention and placement in a military barracks in the capital, Asunción, following a hearing, citing flight risks and the potential hindrance of investigations. Otazú also considered the information Peña might have had access to during his term related to the bank scandal and organized crime.

Peña did not comment on the accusations during the hearing. His attorney, Ricardo Preda, denied the possibility of flight or concealment, arguing that Peña, no longer the president, could not access state agency information. Preda viewed the custody as the most stringent of all possible security measures. The bank scandal has political implications.

The prosecutor accused Peña of breach of trust and self-enrichment, while also seeking his detention and freezing of his assets. Carlos Carvallo, a former Central Bank chief, is also under investigation in connection with the scandal, accused of breach of trust, self-enrichment, and document falsification. The case is part of a scandal involving the Digital bank Ueno, which fell into a deep crisis after years of growth.

The Central Bank of Paraguay initiated a liquidation procedure after the bank's equity ratio fell below half of the prescribed minimum value. At times, customers could not access their accounts. Peña maintained business relations with Grupo Vázquez, which included the Ueno Bank, during his presidency. He held shares in the group holding, had deposited money in Ueno, and owned a bond of another group subsidiary.

Meanwhile, state institutions deposited money in the bank as well. The prosecutor's office claims Peña influenced the investment of public funds in Ueno despite having business ties with the group. He denied allegations of conflicts of interest. Peña was removed as president by a parliamentary impeachment procedure on Friday, with his deputy, Pedro Alliana, sworn in as his successor to govern the country until August 2028.