In brief
The Senate voted to impeach President Santiago Peña after the collapse of digital bank Ueno left 3 million accounts frozen, and Vice‑President Pedro Alliana was sworn in as president. Nearly a decade later, Peña was put under house arrest as the public prosecutor’s office determines the final charges.
On Thursday the Senate of Paraguay voted to remove President Santiago Peña after digital bank Ueno collapsed, freezing the accounts of 3 million customers and triggering a financial crisis. The decision was announced by Chamber Chairman Basilio Nunez and streamed live on the Senate’s YouTube channel.
"44 votes were cast in favor of issuing a guilty verdict; one senator was absent. According to the voting results, the accused Santiago Peña Palacios is found guilty of improper performance of his official duties and, as a result, is removed from the office of president of the Republic of Paraguay by law,"
Immediately following the vote, an extraordinary session of both houses of parliament was convened to take the oath of office from Vice‑President Pedro Alliana, who was sworn in as president before members of the Senate and the Chamber of Deputies.
An earlier vote in the lower house had already opened the impeachment process, with the Chamber of Deputies citing Peña’s alleged ties to Ueno as the source of a conflict of interest. The petition was presented on October 5 and set the stage for the Senate’s 44‑to‑one ruling.
Peña had reportedly offered to resign the day before the impeachment hearing, but a lack of quorum prevented Congress from accepting or rejecting his resignation. The constitutional provision that all former presidents become lifelong senators was waived only in the instance of impeachment.
The collapse of Ueno was formally acknowledged by the Central Bank on November 1, 2014, which imposed external administration and froze the accounts of approximately 3 million customers.
Fast forward to November 6, 2024, Paraguayan authorities placed former President Santiago Peña under house arrest shortly after his impeachment, according to a Reuters report. The move came amid escalating public demonstrations outside his residence in Asunción.
Policymakers maintained a security cordon around Peña’s home while dozens of protesters gathered, underscoring the heightened political tensions that have persisted since the 2014 crisis.
Authorities stated that Peña would remain confined until the public prosecutor’s office determines the final charges, a process that has yet to be concluded. No specific allegations have been formally documented in the public domain at this stage.
Key uncertainties identified by the sources include the exact nature of the final charges against Peña, the long‑term legal consequences of the impeachment, and the reasons behind the sudden collapse of Ueno bank. Additionally, the continued political unrest surrounding the house arrest remains unresolved, with no definitive timeline for when Peña may be released or further prosecuted.
