Authorities have placed ousted Paraguayan President Santiago Peña under house arrest on charges of breach of trust, after the Senate declared him impeached following the collapse of a major bank linked to his government.
Hot Topics
In a unanimous vote, the 44 senators present voted to remove Peña from office for misconduct, bringing a dramatic end to one of the most stable presidencies in South America.
The ruling came just three days after regulators seized control of Ueno Bank, depriving nearly 3 million customers of their savings and bank cards and sparking a political crisis.
In a letter addressed to the National Police Chief, the prosecution asked the police to execute the arrest warrant; it was decided to place Peña under house arrest until he appeared before the prosecutors in the Economic Crimes and Anti-Corruption Unit.
The Attorney General's office confirmed to The Associated Press that he was being held at his home. The warrant also called for the arrest of Carlos Carvalho, the former central bank governor appointed by Peña. It was not immediately clear whether Carvalho was in custody.
Lawmakers have accused Peña of using his political influence to funnel hundreds of millions of dollars of public funds to Bank Ueno, while regulators turned a blind eye to risky lending practices by insiders connected to the bank. Peña has denied any wrongdoing.
Vice President Pedro Aliana was sworn in as president of Paraguay on Friday, completing the remainder of the presidential term, which ends in August 2028. Aliana inherits a government under pressure to return depositors' money and hold those responsible for the collapse of Bank Ueno accountable.
Aliana, 52, is a veteran of the conservative Colorado Party, which has long dominated the nation's political landscape. He previously served as governor of Nimbuco County and as speaker of the House of Representatives. However, he has not escaped the fallout entirely from the scandal, as prosecutors are also investigating him. On Thursday, lawmakers postponed an opposition motion to impeach him.
