Former Paraguayan president Santiago Peña, who was removed from office, has been charged over Ueno Bank’s collapse and ordered held before trial while prosecutors investigate alleged misuse of public funds.
On Saturday, November 7, prosecutors charged Peña with betraying trust and managing funds for personal gain in connection with the bank’s failure. A judge ordered him held at a military facility in Asunción, saying detention was needed to ensure he remained in Paraguay while the case proceeds. Investigators allege that Peña used his influence to direct public deposits to Ueno and cite his former business ties to the bank’s parent company.
Peña’s lawyer denies the charges. Ueno had nearly three million customers. The central bank’s intervention left many of them unable to access their accounts.
The crisis also led to protests and political turmoil. On Friday, the Senate removed Peña from office after rejecting his resignation. Former central bank chief Carlos Carvallo has also been charged and ordered to be detained.
The allegations have not been proven in court. The investigation is ongoing.