Police raid home of ex-president of Paraguay

Asuncion, Paraguay - Police conducted a raid at the residence of former President Santiago Pena as part of an investigation into the banking crisis that led to his removal from office and criminal charges against him. The authorities recently intervened to seize Ueno Bank, an online lender that held accounts for nearly half of Paraguay's 6.5 million residents and over US$800 million in government funds. The bank's collapse caused widespread unrest in the country.

Pena, who assumed office in 2023, owned shares in Ueno Holding, the bank's holding company, until he sold them last year. He faces accusations of using his presidential influence to steer millions in government deposits to Ueno Bank and concealing or downplaying the bank's financial troubles, despite being warned about questionable loans and solvency issues.

Prosecutors announced that Pena's home was targeted in the probe, alleging that Ueno Bank received deposits from government entities while granting suspect loans to companies affiliated with Ueno executives. The indictment states that in 2024, Pena received two loans from Ueno Bank, totaling around US$500,000, to build his mansion outside Asuncion. His monthly mortgage payment is US$38,000, which is six times his presidential salary.

Paraguay's Senate voted on Friday to dismiss Pena, and Vice President Pedro Alliana assumed his position. Alliana announced on Sunday that the government has reimbursed 1.2 million Ueno Bank customers whose funds were frozen during the collapse, amounting to approximately US$158 million so far. Additional disbursements are expected this week.