ASUNCION, Nov 6: Paraguayan President Santiago Pena was removed from office through impeachment on Friday amid a political and financial crisis triggered by the collapse of digital lender Ueno Bank.
All 44 senators present in the upper house voted to remove Pena. One senator was absent. Parliamentary president Basilio Nunez declared him guilty of failing in his duties.
Investigating authorities placed Pena under house arrest at his residence in Asuncion minutes after his removal. He will remain there until he appears before prosecutors in the economic crimes and anti-corruption department.
Pena faced allegations of conflict of interest, abuse of power, breach of trust and misuse of public funds. Lawmakers alleged that he used political influence to channel government funds to the bank, whose parent organisation had previously been associated with him in business. Pena denied wrongdoing.
The central bank began a resolution process against Ueno Bank on November 3 after it failed to meet minimum solvency requirements. The regulator said its solvency ratio was less than half the legally mandated minimum.
The bank's branches subsequently shut, leaving customers unable to withdraw deposits or make card and digital payments. The bank had around 29.4 lakh customers, including about 32,000 pensioners of Paraguay's social security institution whose pension funds were held by the lender.
Pena had expressed his intention to resign in a video message on social media on Thursday. He said he had never intended to betray the trust placed in him by the people.
Vice-President Pedro Alliana was sworn in as the new President at a special parliamentary programme. He will serve the remainder of Pena's term until August 2028 and promised full compensation to customers affected by the bank's collapse.
Protests continued across Paraguay after the crisis, while cases were registered against 27 officials and others linked to the bank on various charges.
