Paraguay’s Senate voted 44-0, with one abstention, to impeach President Santiago Peña amid allegations linked to Banco Ueno, whose closure blocked customers from accessing their accounts. (Foto: Instagram)
Paraguay’s Senate voted Friday, Nov. 6, to impeach President Santiago Peña over alleged ties to Banco Ueno, the country’s largest digital bank, which was dissolved earlier in the week. The bank’s closure blocked access to customer accounts and left thousands of Paraguayans unable to withdraw their money.
The vote was 44 in favor and one abstention. Approval required the support of two-thirds of the senators. Peña had asked for an additional 72 hours to prepare his defense against the accusations, but the request was denied. The impeachment process had been opened by Paraguay’s Chamber of Deputies on Thursday, after Peña had resigned from office. He did not attend the Senate session in person and sent attorneys Ricardo Preda and Adolfo Ferreiro to represent him.
A group of 35 lawmakers filed the impeachment request, alleging Peña had personal involvement with Banco Ueno. He was a shareholder in the bank’s controlling group until 2025. Among the allegations, lawmakers say he promoted changes to the conflict-of-interest law and allowed billions of guaraníes in guarantees from the Paraguayan Social Security Institute, known as IPS, to be concentrated at Banco Ueno. The amount allegedly exceeded legal limits.
Lawmakers also accused Peña of failing to serve the public interest when he appointed Carlos Cavalla, who had held a position at a company connected to Ueno, as president of Paraguay’s Central Bank. Cavalla resigned from the central bank post after the Ueno crisis and protests across the country.
Separately, Paraguay’s Public Prosecutor’s Office has opened a formal investigation into Peña’s connection to Ueno. Authorities are investigating allegations of illicit enrichment, money laundering, corruption, administrative fraud and influence peddling. The allegations are under investigation and have not been established as proven in the account of the case.
Banco Ueno had about 2.9 million customers, equivalent to roughly 40% of Paraguay’s population. The Central Bank dissolved the institution after determining that its solvency level—an indicator of its ability to meet obligations—was less than half the required level. Customer accounts were blocked, preventing depositors from accessing their funds. The bank is accused of manipulating its assets and making loans to companies linked to its controlling group. Eight bank executives were arrested, including its president, Juan Gustale, and vice president and founder Miguel Vázquez.
