Paraguay's ex-President Peña faces prosecutors after impeachment, house arrest


Security personnel stand guard outside the Presidential Escort Regiment military unit, where Paraguay's former president Santiago Pena is held following his removal from office in an impeachment trial that found him guilty of poor performance over his links to the collapse of digital lender Ueno, in Asuncion, Paraguay, November 7, 2026. REUTERS/Cesar Olmedo

ASUNCION, Nov 7 (Reuters) - ⁠Paraguay’s former President Santiago Peña arrived at ⁠the Attorney General’s Office on Saturday to appear ‌before prosecutors, a day after he was impeached and placed under house arrest amid a political and financial crisis triggered ​by the collapse of digital ⁠lender ueno.

Prosecutors said on ⁠Friday that charges against Peña were still being determined ⁠but ‌could include influence peddling.

His removal brought Vice President Pedro Alliana to power, with ⁠the longtime ruling Colorado Party politician sworn ​in on ‌Friday to complete Peña’s term through August 2028.

Lawmakers ⁠who backed ​Peña’s impeachment accused him of conflicts of interest, manipulating regulatory oversight and participating in an institutional cover-up ⁠involving the central bank.

Peña, who was ​a shareholder in ueno’s holding company until March 2025, has denied wrongdoing and said the bank’s problems ⁠were a regulatory matter.

The collapse has left millions of customers struggling to access their accounts and prompted protests in Asuncion. The scandal has also swept ​up senior officials and former ⁠ueno executives, while regulators have sought to reassure depositors ​and contain risks to the ‌wider financial system.

(Reporting by Daniela ​Desantis in Asuncion, writing by Cassandra Garrison in Mexico City. Editing by Lucinda Elliott)

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