Paraguay's President Pena Impeached and Arrested; Alliana Sworn In
The Senate removed Santiago Pena over the Ueno Bank collapse, installing Vice President Pedro Alliana as president while prosecutors place Pena under house arrest.
At a glance
- Paraguay's Senate voted 44-1 to remove President Santiago Pena from office over the Ueno Bank collapse.
- Vice President Pedro Alliana was sworn in as president while Pena was placed under house arrest on breach of trust suspicions.
- Prosecutors are investigating 27 people, including Ueno's lead shareholder, for fraud, misappropriation and influence peddling.
On Friday, Paraguay's Senate voted 44-1 to impeach and remove President Santiago Pena from office, and Vice President Pedro Alliana was sworn in as the country's 53rd president. Pena was immediately placed under house arrest on suspicion of breach of trust and other crimes.
The impeachment follows the sudden collapse of Ueno Bank, Paraguay's fifth-largest lender, which held accounts for nearly two-thirds of the adult population. The central bank seized Ueno on Tuesday after it fell below solvency standards, leaving millions without access to funds and pension payments.
Ueno had grown rapidly with $800 million in public money and $355 million in state pension funds invested. Pena was a shareholder of Ueno's parent company until early 2025. Prosecutors are investigating whether the bank was shielded from oversight due to government connections. At least 27 people, including lead shareholder Miguel Vazquez, face charges such as fraud, breach of trust, misappropriation, and influence peddling. An arrest warrant was also issued for former central bank chief Carlos Carvallo.
Pena offered to resign, but Congress rejected the resignation and proceeded with impeachment, which would strip him of the automatic Senate seat and legal protections that come with a resignation. The ruling Colorado Party, led by former President Horacio Cartes, supported the impeachment. The Chamber of Deputies voted 78-0 to impeach, and the Senate removed Pena the next day. No impeachment proceedings were opened against Alliana.
Alliana, 52, previously served as governor of Neembucú and spent nearly a decade in the Chamber of Deputies, including three years as its president. He assumes office amid one of Paraguay's most severe political and economic crises. Pena has said he will cooperate with investigators but did not attend the impeachment hearings, citing a desire to avoid further division.
Source: Al Jazeera.
Questions and answers
- Why was Paraguay's president impeached?
- President Santiago Pena was impeached following the collapse of Ueno Bank, which held accounts for nearly two-thirds of the country's adults and had received $800 million in public funds; Pena was a former shareholder of the bank's parent company.
- What happens to Santiago Pena now?
- Pena has been placed under house arrest on suspicion of breach of trust and other crimes, and prosecutors are investigating his role in the bank's failure.
- Who is the new president of Paraguay?
- Pedro Alliana, 52, previously vice president and a long-time lawmaker, was sworn in as Paraguay's 53rd president after the Senate removed Pena.
