Santiago Peña, the President of Paraguay, was impeached due to a banking crisis that has deprived millions of citizens of access to their deposits. Paraguayan senators voted decisively on Friday to remove him from office for misconduct in his position.
Impeachment and Its Consequences
Peña's removal paved the way for the succession of Pedro Alliana, the Vice President, who will serve until the end of his presidential term in August 2028. Peña, who resigned from his position on Thursday, was stripped of his lifetime Senate seat and the legal immunity that former presidents enjoy, in lieu of accepting his resignation, and is now facing legal prosecution.
Criminal Investigations and House Arrest
Following the Paraguayan Senate vote, prosecutors issued an arrest order for Peña. He, along with Carlos Carvalho, the former Central Bank president, is under criminal investigation. Officials stated that Peña has been placed under house arrest due to the prosecutor's decision on final charges. Meanwhile, protests were held outside his residence in the capital Asunción, with police securing the area.
Peña found himself in this situation amid increasing pressure due to the collapse of the digital bank Uno, one of the largest banks in the country. Accounts at this bank, which were also used for processing pension payments, have been frozen, leaving millions of customers without access to their money. Uno also held hundreds of millions of dollars in public funds.
Peña's resignation came after the Speaker of Congress, Basilio Núñez, and the leader of the ruling conservative party, Horacio Cartes, withdrew their support for him. 35 opposition representatives and opponents of the ruling party submitted impeachment articles to the House of Representatives, accusing Peña of conflicts of interest and misusing pension funds.
Peña's rapid downfall is linked to the banking crisis and financial concerns arising from the reduction of Uno's solvency ratio to minimum requirements. Uno serves about 2.94 million customers, covering approximately 60% of Paraguay's adult population.
