In a swift and unanimous legislative action, Paraguay's President Santiago Peña was impeached and subsequently placed under house arrest on Friday, November 7, 2026. This decisive move by lawmakers in Asunción, including members of his own party, came minutes after a vote to remove him from office, triggered by the collapse of Ueno Bank earlier in the week. The financial crisis has left more than half of the country's population, an estimated three million depositors, unable to access their savings and pensions.
Peña had offered his resignation on Thursday, but senators rejected it, opting instead to impeach him on charges of misconduct. This action stripped him of the immunity typically afforded to former presidents. The impeachment specifically cited allegations of conflicts of interest, manipulation of regulatory oversight, diversion of pension funds, and participation in an institutional cover-up involving the central bank. Prosecutor Silvia Margarita Gonzalez Vester confirmed Peña is scheduled for questioning on Saturday regarding accusations of breach of trust, influence peddling, and misappropriation of funds. Peña, who held shares in the company owning Ueno Bank until last year, has consistently denied any wrongdoing, with his defense lawyer Ricardo Preda labeling the allegations as "reckless" and "irresponsible and opportunistic."
The digital bank's failure led to widespread public outrage, particularly in the capital. Long queues formed at Ueno branches on Tuesday and Wednesday as desperate citizens attempted to withdraw funds. Protests escalated across the country on Thursday, with thousands demanding their money back and facing police who deployed tear gas and water cannons. All 44 senators present voted for Peña's removal; one lawmaker was absent. Senate President Basilio Núñez stated Peña was found guilty of "dereliction of duty." Senator Rafael Filizzola described the situation as "the biggest corruption scandal in our democratic history."
Meanwhile, Pedro Alliana, Peña's deputy, has been sworn in as the new interim president, pledging to support the affected millions. Alliana promised that "Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," and will serve in the role until 2028.
Image: Wikipedia — Santiago Peña
📰 Source: BBC World