Paraguay’s ousted president charged over banking scandal

What the report says

Paraguay’s former president, Santiago Pena, has been charged after being questioned at the attorney general’s office in Asunción, following his impeachment over a banking scandal tied to Ueno Bank. According to Al Jazeera, prosecutors say the case centers on the rapid expansion and later collapse of the digital bank during Pena’s presidency, which left nearly three million people unable to access savings or use bank cards. Pena was placed under house arrest and prosecutors are seeking pretrial detention, while Reuters reported the charges include breach of trust and administration for personal gain.

The article says investigators are examining claims that Pena used political influence to steer large amounts of public money toward Ueno and shielded it from closer regulatory scrutiny. It also notes allegations involving the appointment of Carlos Carvallo, a former executive linked to the bank’s corporate history, as head of Paraguay’s central bank in 2023. Carvallo was also charged, including with producing false public documents. Pena has denied wrongdoing and has argued that the bank’s troubles were a regulatory issue.

The scandal has triggered days of protests across Paraguay, some of them violent, as depositors demand access to their money. Al Jazeera reported that the central bank said some customers have already received partial or full reimbursement of insured deposits, but public anger remains high. The episode has also created a political crisis, with Pena’s replacement, Pedro Alliana, now under scrutiny as well.