Paraguay’s Senate removed Santiago Peña on Friday, November 6, as Ueno Bank’s collapse worsened a political crisis, and Vice President Pedro Alliana was sworn in as president while Peña was put under house arrest.
Peña had announced his resignation the day before. But lawmakers went ahead with impeachment after Congress did not act on his resignation. Forty-four senators voted to remove him.
The vote removed the protections attached to his office. Lawmakers accused Peña of using his influence to direct public funds to Ueno and of benefiting from weak oversight. He has denied wrongdoing.
Prosecutors ordered him to stay at home until he appears before authorities. Those authorities are investigating suspected breach of trust and other possible offenses. Alliana took the oath later on Friday.
He is to serve the rest of the term, which ends in August 2028. The crisis began after regulators took control of Ueno Bank. The bank had nearly three million customers, and many could not access their savings or pension payments.
Alliana has promised compensation for affected customers. His government faces pressure to restore access to funds and explain the bank’s collapse.