Paraguay’s impeached president charged over bank collapse
Summary
Paraguayan prosecutors charged Santiago Peña with breach of trust and mismanagement for personal gain after lawmakers impeached and removed him from office. The case centers on allegations that he used his influence to direct government deposits to Ueno Bank and concealed the bank’s financial problems; his lawyer denies the charges.Key Facts
- The Senate removed Peña from office on Friday, one day before prosecutors charged him.
- A judge ordered Peña held in pre-trial custody and froze assets belonging to him and former Ueno Bank director Carlos Carvallo.
- Carvallo faces the same charges as Peña, as well as a charge of falsifying government documents.
- Peña owned shares in Ueno Holding, Ueno Bank’s parent company, until he sold them last year.
- Ueno Bank held accounts for nearly half of Paraguay’s 6.5 million people and more than $800 million in government funds.
- Prosecutors allege Peña directed government deposits to Ueno Bank and concealed or downplayed its financial problems.
- Paraguay’s Central Bank said more than half of Ueno Bank customers affected by the collapse had recovered their money.
- Vice President Pedro Alliana replaced Peña and said he would support depositors affected by the bank’s collapse.
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