Paraguay Prosecutors Target Ousted Leader as Ueno Savers Remain Locked Out

Paraguayan prosecutors are now moving against ousted president Santiago Peña, while millions of Ueno Bank customers still cannot reach their savings. Peña is under house arrest, but the sources differ on how far the criminal case has advanced.

The BBC reported that prosecutors have charged Peña with breach of trust and administration for personal gain. DW reported that he is held pending a decision by the public prosecutor's office on final charges. GBC Ghana Online said a judge will decide on his continued custody. Peña denies wrongdoing.

Where the criminal case stands

According to DW, prosecutors ordered Peña's arrest together with former central bank chief Carlos Carvallo after the Senate vote. Officials later said Peña would stay under house arrest. DW reported that dozens of protesters gathered outside his residence in Asunción while police kept a cordon around the property.

GBC reported that one prosecutor said Peña faces questioning over breach of trust, influence peddling and misappropriation of funds. It also said the Attorney General's office opened three investigations: into the bank's supervision, the placement of state funds and the conduct of public officials. GBC said it had not received a response from Peña's legal team. His lawyer Ricardo Preda has called the allegations a “reckless accusation,” according to the BBC.

Authorities have also targeted the bank's leadership. DW reported that eight senior executives were detained, including founder Miguel Vazquez and bank president Juan Manuel Gustale. Prosecutors charged 27 bank officials and business associates with offenses including breach of trust and attempted fraud. Lawyers for several detainees said they needed time to review the allegations.

Details that differ between reports

The outlets disagree on some points. The BBC described the Senate vote as unanimous, with 44 of 45 senators in favor and one absent. GBC reported the tally as 44 to 1, also with one lawmaker absent. DW said Peña resigned on Thursday, while GBC said his video resignation came shortly before Friday's vote. All three agree that senators chose impeachment over accepting the resignation, which stripped him of the lifetime Senate seat and immunity that former presidents receive.

What the new government has promised

Vice President Pedro Alliana was sworn in and will serve until August 2028. The BBC reported that he promised not to abandon those hurt by the collapse and said affected Paraguayans “will be fully compensated.” The sources do not say how or when that would happen.

DW reported that Peña had pledged legislation on Wednesday to return savers' money as quickly as possible. GBC reported that the central bank began processing guarantee payments in stages on Thursday night, but large crowds still gathered at branches for two days.

Why it matters for Paraguayans with money in Ueno

The practical damage reaches well beyond one bank's customers. DW said Ueno served about 2.94 million customers, roughly 60% of Paraguay's adult population. Its app, card payments and transfers stopped working, and its branches closed. The BBC estimated that about three million depositors remain unable to reach their savings and pensions.

Public money is also caught up in the failure. DW reported that Ueno held roughly $800 million in public-sector deposits, about a quarter of its total deposits, including funds from the operators of Paraguay's hydroelectric dams. The Social Security Institute, which manages pension and health care funds for most Paraguayan workers, held $355 million at the bank, about 9% of its investments, according to financial manager Gladys Vera. GBC cited lawmakers who put the amount of state pension and public funds at the bank at up to $380 million.

Workers are affected too. DW reported that hundreds of employees of Ueno and other companies in its parent group protested outside the Labor Ministry on Thursday, demanding unpaid wages and severance.

How the allegations took shape

Thirty-five opposition lawmakers and ruling-party dissidents filed the impeachment articles in the 80-seat Chamber of Deputies, DW reported. They accused Peña of conflicts of interest, misuse of pension funds and institutional cover-ups. DW said Peña sold his shares in Ueno Holding in April 2025, and lawmakers also cited two loans he received from Ueno. They pointed to the central bank's approval of Ueno's conversion into a bank 83 days after Carvallo's appointment. Peña has said he divested his commercial shares before the scandal, according to GBC.

What happens next

Prosecutors are expected to decide on final charges against Peña, and a judge is to determine his custody status, according to DW and GBC. The BBC reported that analysts expect him to be prosecuted over the collapse. Ueno's accounts remain frozen, and the sources do not say when depositors will regain access.

Earlier on Around Prague: Paraguay's President Removed and Put Under House Arrest After Bank Collapse

Read next
Paraguay's President Removed and Put Under House Arrest After Bank Collapse
Paraguay's President Resigns Days After Ueno Bank Failure Freezes Deposits
Paraguay Bank Collapse: Inspectors Flagged Risky Loans Months Before Ueno Fell

Around Prague, based on reporting by GBC Ghana Online, BBC, DW.com