Paraguay’s ousted president charged over banking scandal
News Source
•Sat, 07 Nov 2026 18:35:15 +0000
📰 What Happened
Paraguay's former president, Santiago Pena, has been charged with breach of trust and using his office for personal gain. He spent Saturday morning being questioned at the attorney general's office in Asuncion. The charges came one day after lawmakers impeached him and put him under house arrest.
Prosecutors say Pena pushed more than $800m of public money into Ueno, a fast-growing digital bank, and shielded it from regulators. They also say he let the state pension fund deposit $355m there, above the legal limit. Pena denies wrongdoing and says the bank's problems were a legal matter.
Ueno was taken over this week, leaving nearly three million people unable to reach their savings or use their cards. Prosecutors now want Pena and the former central bank chief held in jail until trial.
🔍 The Backstory
Ueno grew quickly during Pena's time in office. It drew millions of customers and became one of the country's best-known digital banks. Critics say it took big risks with money people trusted it with.
Pena held a stake in Ueno's parent company until March 2025. In 2023 he picked a former company executive, Carlos Carvallo, to run the central bank. Carvallo was also charged on Saturday.
Paraguay has been run for decades by the Colorado Party, a conservative group. Pena's replacement, Pedro Alliana, comes from the same party and is also under investigation.
🎯 Why It Matters
Nearly half of Paraguay's people cannot use their savings. The case tests whether a rich, connected leader can be held to account when a bank fails.
Paraguay's former president, Santiago Pena, has been charged with breach of trust and using his office for personal gain. He spent Saturday morning being questioned at the attorney general's office in Asuncion. The charges came one day after lawmakers impeached him and put him under house arrest.
Prosecutors say Pena pushed more than $800m of public money into Ueno, a fast-growing digital bank, and shielded it from regulators. They also say he let the state pension fund deposit $355m there, above the legal limit. Pena denies wrongdoing and says the bank's problems were a legal matter.
Ueno was taken over this week, leaving nearly three million people unable to reach their savings or use their cards. Prosecutors now want Pena and the former central bank chief held in jail until trial.
Ueno grew quickly during Pena's time in office. It drew millions of customers and became one of the country's best-known digital banks. Critics say it took big risks with money people trusted it with.
Pena held a stake in Ueno's parent company until March 2025. In 2023 he picked a former company executive, Carlos Carvallo, to run the central bank. Carvallo was also charged on Saturday.
Paraguay has been run for decades by the Colorado Party, a conservative group. Pena's replacement, Pedro Alliana, comes from the same party and is also under investigation.
Nearly half of Paraguay's people cannot use their savings. The case tests whether a rich, connected leader can be held to account when a bank fails.