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Symbolic image: Paraguay's ousted president Peña charged over Ueno bank collapse, detention reported

Symbolic image

Paraguay's ousted president Peña charged over Ueno bank collapse, detention reported

12 sources

Prosecutors charged Paraguay's ousted president Santiago Peña with breach of trust on Saturday, a day after the Senate removed him. FAZ reports that a judge ordered him into pretrial detention.

The Senate removed Peña on Friday, 6 November, over his links to Ueno Bank, which the central bank placed into resolution. He had offered to resign a day earlier, but Congress pressed ahead, so he lost the immunity he would have kept as a senator for life. On Saturday prosecutors charged him with breach of trust and administration for personal gain. Handelsblatt and The Guardian describe a prosecution request for custody, while FAZ says a judge has ordered it. Peña declined to make a statement. Vice president Pedro Alliana was sworn in and is to govern until August 2028.

Asset freeze and co-defendant

Prosecutors asked to freeze the assets of Peña and of former central bank chief Carlos Carvallo, who faces the same charges. Handelsblatt adds that Carvallo is also accused of producing false public documents. Prosecutors stressed that the investigation is only beginning and that no criminal organisation is alleged so far.

Millions cut off from savings

According to The Guardian, nearly 3 million Ueno customers, about 60% of adults, were locked out of their accounts. About 32,000 pensioners whose public pension funds were invested in the bank lost their payments, and businesses reported sales falls of up to 80%.