The political landscape in Paraguay has been rocked by the impeachment and subsequent charges against former President Santiago Pena, who faces allegations tied to a massive banking scandal that has left millions without access to their funds. As protests erupt across the nation, citizens demand accountability and transparency from their leaders. This crisis not only highlights the fragility of financial systems but also raises questions about governance and trust in leadership in the midst of economic turmoil.
Paraguay’s former President Santiago Pena has been charged in connection with a significant banking scandal that has left nearly half of the country’s population unable to access their savings. Following his impeachment, which occurred amid a tumultuous political climate, Pena spent a morning answering questions at the attorney general’s office in Asunción. He subsequently faced charges of breach of trust and mismanagement for personal gain, as reported by ZezapTV.
The situation stems from Pena’s association with Ueno, a digital bank that experienced rapid growth during his presidency, largely financed by a government injection of over 0 million in public funds. This influx drew millions of customers to the bank, but also set the stage for the collapse that has ignited protests across Paraguay. Thousands have taken to the streets, demanding access to their savings, and tensions have escalated, leading to violent demonstrations and confrontations with law enforcement.
Pena has refuted any allegations of wrongdoing, asserting that the issues plaguing Ueno are rooted in regulatory failures rather than personal misconduct. Among the charges is the accusation that he exerted his political influence to direct government funds to Ueno while avoiding regulatory scrutiny as concerns about the bank’s risky lending practices mounted. Central to this controversy is Peña’s appointment of Carlos Carvallo, a former Ueno executive, as head of Paraguay’s central bank in 2023. Carvallo was also charged with breach of trust, falsifying public documents, and mismanagement for personal benefit.
Furthermore, Pena allegedly permitted the state pension fund to exceed legal limits by depositing 5 million in Ueno. Following the impeachment, Pena had offered his resignation, but lawmakers rejected it, proceeding with the impeachment process to strip him of any political immunity that might arise from resignation. An arrest order was issued shortly thereafter.
The crisis was triggered when regulatory bodies took control of Ueno due to solvency concerns, leaving approximately three million people unable to use their bank cards or access their savings. While Paraguay’s central bank stated that 1.2 million customers had begun receiving partial or full reimbursements of their insured deposits, public dissatisfaction remains high, as many continue to await their reimbursements. Criticism has also been directed toward Pena’s successor, Pedro Alliana, who is himself under investigation, further complicating an already challenging political landscape. Alliana, sworn in as president after Pena’s removal, has committed to supporting those impacted by the bank’s downfall.
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