Paraguay's Senate impeached President Santiago Peña and removed him from office amid the collapse of Ueno Bank. Shortly after the vote, prosecutors ordered the detention of Peña and former Central Bank chief Carlos Carvalho, AP reports. This was reported by Qazaqyia.kz citing Kursiv Media.
The Senate's decision concluded the parliamentary procedure to remove the president. Peña had previously announced his resignation, but Congress did not accept it and continued considering the charges.
The order to detain Peña was issued as part of a criminal investigation into breach of trust and other alleged crimes related to the collapse of Ueno Bank.
Prosecutors sent a letter to the national police commander demanding the order be executed. According to the document, Peña must be held under guard at his home until he is delivered to the prosecutor's unit for economic crimes and anti-corruption.
At hearings on November 6, the Senate rejected Peña's request for an additional 72 hours to prepare his defense. Thirty-nine senators voted against the delay, three in favor.
The president claimed he received the indictment and about 300 pages of attachments less than 12 hours before the session.
"A period of less than 12 hours is clearly insufficient for the process to meet the standards of a rule-of-law state," Peña wrote in an address to the president of Congress.
He did not attend the hearings himself. His lawyers arrived after the session began and stated they could challenge the procedure in Paraguay's Supreme Court.
After considering the charges, the Senate decided to remove the head of state. Peña lost the right to become a senator for life and to receive the parliamentary immunity associated with that status.
The presidential post is to be assumed by Vice President Pedro Alliana. His powers will last until the end of the current term — August 2028.
Until April 2025, Peña owned a stake in the group that includes Ueno Bank. Already as president, he appointed former bank head Carlos Carvalho as head of the Central Bank, which supervised the financial institution.
Lawmakers accuse Peña of a conflict of interest and allege that he allowed pension funds to be placed in Ueno beyond the legal limits. According to Reuters, about $850 million in state funds was held in the bank.
Ueno Bank issued large loans to companies connected to its owners beyond permitted limits. The regulator found violations in the processing of some loans and also established that the bank recorded some expenses as assets.
After the financial statements were adjusted, Ueno's capital turned out to be less than half of the established minimum. The Central Bank took the financial institution under its management.
About 3 million clients lost access to their money: cards, transfers and the mobile app stopped working. The banking crisis caused mass protests by depositors in Asunción. In the evening of November 5 local time, some clients began receiving payments.
Earlier, Kursiv wrote that Peña publicly announced his resignation when lawmakers were already discussing his impeachment. However, the voluntary departure did not stop the removal procedure.