Paraguay’s ex-president Peña under house arrest over Ueno Bank collapse

Paraguay’s ousted President Santiago Peña has been placed under house arrest on suspicion of breach of trust, shortly after the Senate removed him frwom office over the collapse of Ueno Bank, The Associated Press reported.

Ousted Paraguayan President Santiago Peña has been placed under house arrest on suspicion of breach of trust, shortly after the Senate removed him from office over the collapse of Ueno Bank, MS NOW reported.

All 44 senators present voted on Friday to remove Peña for misconduct. The vote came three days after regulators took over the bank, locking nearly half of Paraguay’s population out of their savings.

Lawmakers accused Peña of steering hundreds of millions of dollars in public funds into Ueno. He has denied wrongdoing.

“We have confirmed that he is present and has himself available to the authorities for all legal proceedings,” said prosecutor Silvia González.

In a farewell message, Peña wrote: “I do not want my presence to be a cause of greater division or instability.”

Vice President Pedro Alliana, who is also under investigation, was sworn in to complete the term ending in August 2028.

Prosecutors have also ordered the arrest of former central bank chief Carlos Carvallo.