Paraguay’s ousted president charged over banking scandal
Summary
Paraguay’s former president Santiago Peña was charged over the collapse of digital bank Ueno, which left nearly three million people unable to access their savings or use bank cards. Prosecutors accuse Peña of directing public funds to the bank and shielding it from oversight; he denies wrongdoing. The collapse has sparked protests and a political crisis.Key Facts
- Peña was impeached and removed from office a day before he was charged.
- Reuters reported that Peña faces charges of breach of trust and administration for personal gain.
- Prosecutors allege Peña used political influence to direct public money to Ueno and protect it from regulatory scrutiny.
- Peña held a stake in Ueno’s parent company until March 2025.
- The state pension fund allegedly deposited $355 million at Ueno, above legal limits.
- Former central bank head Carlos Carvallo was charged with breach of trust, producing false public documents, and administration for personal gain.
- Paraguay’s central bank said 1.2 million customers had received partial or full reimbursement of insured deposits by Saturday.
- Prosecutors are seeking pretrial detention for Peña and Carvallo.
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