ASUNCIÓN, Paraguay — Prosecutors in Paraguay have charged former President Santiago Peña with breach of trust and administration for personal gain over his alleged role in the collapse of Ueno Bank, the BBC reported. Peña denies wrongdoing and is presumed innocent.
Related: Paraguay’s President Submits Resignation Amid Ueno Bank Crisis.
What happened to depositors
The suspension of the digital bank froze the accounts of 2.9 million people, about 60% of the country’s adults, leaving some unable to pay for basics such as bread and water, The Guardian reported. The BBC put the number of depositors still unable to reach their savings and pensions at about 3 million. Long lines formed at branches in Asunción, and protests spread across the country, with police using tear gas and water cannons at earlier demonstrations, the BBC said.
How Peña fell
Peña offered to step down, but senators refused his resignation and impeached him instead, removing the immunity usually given to former presidents. The vote was 44 of 45 senators, with one absent, the BBC reported. He was placed under house arrest minutes later, The Guardian said.
The impeachment charges alleged conflicts of interest, manipulated regulatory oversight, diverted pension funds and an institutional cover-up involving the central bank, according to the BBC. Peña held shares in the company that owned the bank until last year. Prosecutors opened an investigation on suspicion of illicit enrichment, money laundering and influence peddling, The Guardian reported.
What happens next
Vice President Pedro Alliana was sworn in as president and will serve until 2028. “Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated,” he said, according to the BBC. More coverage is in Business & Finance.
Sources
- BBC News: Paraguay’s former president charged after bank collapse
- The Guardian: Ousted Paraguay president under house arrest after banking crisis leaves 60% of country unable to access accounts
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