Ueno Bank Scandal: Paraguay Senate Impeaches President Santiago Peña
President Santiago Peña is removed from office following a massive financial scandal involving Ueno Bank. Vice President Pedro Alliana takes over.
In a dramatic political upheaval, the Senate of Paraguay has voted to remove President Santiago Peña from office. The decision came on Friday after an overwhelming majority of 44 out of 45 senators supported the impeachment, effectively ending his presidency amidst a deepening financial crisis known as the President Santiago Peña impeachment.
A Failed Resignation and Sudden Ousting
The impeachment followed a failed attempt by Peña to resign on Thursday. Lawmakers pushed forward with the formal removal process specifically to strip the former leader of his parliamentary immunity. This legal maneuver clears the path for a full-scale criminal investigation into his alleged connections to the catastrophic collapse of Ueno Bank.
Following the vote, Vice President Pedro Alliana was immediately sworn in as the new president of Paraguay. Alliana will now lead the nation until the current term concludes in August 2028.
The Ueno Bank Crisis: Millions Left Stranded
The root of this political storm is the sudden closure of Ueno Bank by the Central Bank of Paraguay. The institution suffered a severe solvency crisis that sent shockwaves through the national economy, leaving approximately 3 million depositors—roughly half of the country's entire population—unable to access their money.
The scale of the financial failure sparked public outrage and led lawmakers to charge Peña with "serious and systematic dereliction of duty."
Allegations of Corruption and Conflict of Interest
The charges against the ousted president are severe. Investigators and lawmakers allege that Peña engaged in several unethical practices, including:
- Conflicts of Interest: Maintaining ties to the bank's parent group through former shareholdings.
- Misuse of State Funds: Allegedly using his political power to redirect state pension funds into Ueno Bank.
- Regulatory Manipulation: Claims that he compromised oversight by appointing a former Ueno executive to head the Central Bank.
House Arrest and Legal Battles
The fallout has moved swiftly from the legislative chamber to the judicial system. Prosecutor Christian Benítez has confirmed that Santiago Peña has been placed under house arrest in Asunción. He remains there while awaiting a judicial decision regarding his custody as criminal proceedings move forward.
Peña is scheduled to appear before prosecutors on Saturday, November 7, 2026, to answer for the allegations.
The Collapse of Political Support
While Peña once enjoyed the backing of the ruling Colorado Party, the severity of the Ueno Bank scandal eventually became too great to ignore. The party ultimately withdrew its support, leaving the president isolated and leading to the near-unanimous vote in the Senate to formalize his removal from power.