07.11.2026 04:10
The Paraguayan Senate acquitted President Santiago Pena on charges of "abuse of office" with 44 votes in favor. Pena was detained at his home as part of corruption allegations concerning the closure of Ueno Bank and a $355 million public pension fund. Having lost his lifetime senator status and immunity, Vice President Pedro Alliana will serve in his place until 2028.
After his resignation was rejected by Congress, President Santiago Pena, who was impeached by the Paraguayan Senate on charges of 'abuse of office,' was taken into custody.
Pena, who received 44 votes in favor in the Senate vote, became the second president in the country's recent democratic history to lose office as a result of an impeachment process, after former President Fernando Lugo was removed from office in June 2012.
Pena, impeached on charges of 'abuse of office,' lost the 'senator for life' status and legal immunity granted to former presidents after being found guilty by the impeachment decision under Article 189 of the Constitution.
Under the constitutional protocol, current Vice President Pedro Alliana will assume the presidency until 2028.
TAKEN INTO CUSTODY AT HIS HOME
The Paraguayan National Police confirmed that Pena, who was removed from office, was taken into custody at his home in line with a decision issued by the Attorney General's Office.
Security forces, acting within the investigation conducted by the Economic Crimes and Anti-Corruption Unit, implemented the house arrest decision for Pena based on allegations regarding the closure of Ueno Bank, 'breach of trust,' and corruption involving the $355 million public pension fund IPS.
It was shared that Pena will remain under house arrest until he is brought before the prosecutor of the Anti-Corruption Unit.
Meanwhile, the Economic Crimes and Anti-Corruption Unit of the Paraguayan Attorney General's Office also detained former President of the Central Bank of Paraguay (BCP) Carlos Carvallo Spalding, who resigned from his post.
ALLEGATIONS AGAINST PENA
In the impeachment file prepared by opposition lawmakers against Pena, it was argued that although Pena took office in 2023, he kept his shares in the umbrella group of Ueno Bank, putting his commercial interests ahead of his state responsibilities and abusing his office.
The file included allegations that the Social Security Institute's (IPS) pension fund of approximately $355 million was kept in this bank, granting privileges, and that there was irregularity in the appointment of Carlos Carvallo as President of the Central Bank of Paraguay (BCP) in 2023.
Pena, however, rejected the allegations, stating that his priority was to protect the people and that those responsible for irregularities would be held accountable before the judiciary.
HOW DID THE BANK SCANDAL BEGIN?
Ueno Bank, one of the country's largest private financial institutions, serving 2.9 million of Paraguay's population of approximately 6.1 million, was intervened on November 3 due to deteriorations in its financial structure.
The Central Bank of Paraguay decided to liquidate the institution after the bank's capital adequacy ratio fell below half the legal limit.