Former Paraguayan President Santiago Peña is under investigation for alleged criminal association, breach of trust, and self-serving administration in the Ueno Bank case. The allegations have not been proven. (Foto: Instagram)
Paraguay’s Public Ministry expanded its investigation of former President Santiago Peña on Nov. 13, adding criminal association to the offenses under examination in the Ueno Bank case. Peña is being held in pretrial detention at a military facility and is also under investigation for suspected breach of trust and self-serving administration. Prosecutors identify him as a possible leader of the alleged criminal association; the allegations have not been established as fact.
The expanded allegations came about a week after Congress removed Peña from office amid a financial crisis triggered by the collapse of the digital bank. Investigators are seeking to determine whether he was involved in alleged irregularities at the institution and at companies connected to its controlling group. In the initial accusation, prosecutors had described Peña as an instigator of the alleged breach of trust and as responsible for the alleged self-serving administration.
Peña, a 47-year-old economist, became president in 2023. His business ties to the bank’s controlling group have drawn scrutiny, including his shareholding in the holding company linked to Ueno Bank, which continued until March 2025. Investigators are examining those relationships as part of the case.
The political crisis began after the Central Bank of Paraguay intervened in Ueno Bank. The digital institution left millions of customers unable to access their accounts, and the episode also affected pension fund resources and government accounts. The disruption led to protests in Asunción and intensified pressure on the government. The regulator identified problems with credit operations, irregularities in how assets were recorded and insufficient capital to keep the bank operating.
On Nov. 5, Peña announced that he would leave the presidency, saying his departure was necessary to protect the country’s stability and democratic institutions. His announcement did not end the impeachment proceedings, which continued in Congress. Legislators chose to proceed with the political trial; a voluntary departure could have allowed Peña to take a lifetime seat in the Senate, a position that would have granted him parliamentary immunity.
Congress completed the impeachment process on Nov. 6 and confirmed Peña’s removal for poor performance of his duties. After he officially left office, Vice President Pedro Alliana took over to serve out the term, which is scheduled to end in August 2028. The investigation also includes former Central Bank of Paraguay President Carlos Carvallo and other officials from the institution.
