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

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.