Pedro Alliana takes the oath of office as Paraguay’s interim president.
Senators removed Santiago Peña as millions lost access to savings, while successor Pedro Alliana pledged compensation.
Paraguay’s Senate approved the Peña impeachment on Friday, removing President Santiago Peña after the collapse of Ueno Bank. Authorities arrested him minutes after the vote and placed him under house arrest.
The digital bank had links to Peña’s private business interests. Until last year, he held shares in the company that owned it, but he denies wrongdoing.
Meanwhile, an estimated three million depositors cannot access their savings and pensions following the central bank’s seizure of Ueno. The crisis has triggered widespread protests, particularly in the capital, Asunción.
Peña impeachment ends presidential immunity
Peña offered to resign on Thursday, but senators instead pursued impeachment and charged him with misconduct. The decision also stripped him of the immunity usually granted to former presidents.
All 44 senators present voted for his removal, including members of his own party. One senator was absent. After the vote, Senate President Basilio Núñez said Peña had failed to fulfil his duties.
The impeachment charges alleged conflicts of interest, manipulation of regulatory oversight and diversion of pension funds. They also alleged Peña took part in an institutional cover-up involving the central bank.
Prosecutor Silvia Margarita Gonzalez Vester said Peña would face questioning on Saturday. The allegations concern breach of trust, influence peddling and misappropriation of funds.
However, defence lawyer Ricardo Preda rejected the accusations, describing them as reckless, irresponsible and opportunistic.
Alliana promises compensation for depositors
Vice-President Pedro Alliana subsequently took the oath of office as interim president. He will serve until 2028 and promised full compensation for people affected by the financial collapse.
The bank’s failure has left more than half of Paraguay’s population without access to their savings. Depositors’ inability to withdraw savings and pensions has fuelled anger as the financial crisis deepens.
Senator Rafael Filizzola described the affair as the largest corruption scandal in Paraguay’s democratic history. He also said it had severely damaged the state, private citizens and the country’s credibility.
In his Thursday address to the nation, Peña apologised and said he had never intended to betray public trust. Despite that apology, he has maintained his denial of wrongdoing over the bank’s collapse.
