Judge Jails Ousted President Peña
A Paraguayan judge ordered ousted President Santiago Peña held in pre-trial detention at a military facility Saturday night, cementing criminal proceedings over the collapse of digital lender Ueno Bank. The detention ruling isolates newly sworn President Pedro Alliana as 40,000 public union workers prepare nationwide strikes over frozen pension savings.
Jailing Peña sacrifices the former president to contain public rage — leaving the ruling Colorado Party fighting to survive without its standard-bearer.
Background Paraguay's governing Colorado Party has held power for almost eight decades, relying on close patronage networks between state institutions and private financial institutions. That model fractured when regulators seized Ueno Bank over insolvency, igniting public fury after state pension funds lost hundreds of millions in connected accounts.
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All 44 senators present voted unanimously Friday to convict Peña of misconduct and influence peddling, marking the first successful presidential impeachment in Asunción since Fernando Lugo's ouster in 2012.
Judge Hernán Otazú ordered Peña remanded to pre-trial detention at a military facility Saturday night, rejecting defense requests for bail and exposing the former president to up to 20 years in prison.
Vice President Pedro Alliana took the oath of office Friday night pledging emergency compensation for depositors, yet he faces immediate strikes from public unions whose pension savings remain frozen.
The central bank shut down Ueno Bank after capital ratios fell below 50% of regulatory floors, stranding 2.9M accounts and paralyzing electronic commerce across 60% of the country.
Timeline
Today · Sat Nov 7
A Paraguayan judge ordered ousted President Santiago Peña held in pre-trial detention at a military facility Saturday night on charges of breach of trust and administration for personal gain.
Paraguayan prosecutors formally charged ousted President Santiago Peña on Saturday with breach of trust and administration for personal gain, requesting pre-trial detention.
Paraguayan prosecutors brought ousted President Santiago Peña to the attorney general's office Saturday for interrogation over criminal breach of trust and money laundering allegations.
Paraguay's Central Bank began disbursing initial emergency advances of up to $1,600 to small depositors locked out of Ueno Bank accounts.
Former Central Bank president Carlos Carvallo surrendered to police in Asunción after prosecutors ordered his detention in the criminal investigation into Ueno Bank's collapse.
Yesterday · Fri Nov 6
Prosecutors placed ousted President Santiago Peña under house arrest on Friday night on charges of breach of trust and influence peddling linked to Ueno Bank's collapse.
Vice President Pedro Alliana was sworn in as Paraguay's president on Friday night to serve through August 2028 following Santiago Peña's impeachment.
Paraguay's Senate voted unanimously 44–0 on Friday to convict President Santiago Peña of misconduct and remove him from office.
Watch Monday's indefinite union strike: if 40,000 teachers shut down schools over frozen pensions, Alliana faces a paralyzed capital — and pressure to void Ueno Bank transactions entirely.
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