Paraguay’s Public Prosecutor’s Office issued an arrest order for former president Santiago Peña, who is to remain under house arrest at his residence. The measure is part of criminal case No. 92/2026, linked to the financial crisis surrounding Ueno Bank and an alleged breach of trust.
The prosecutorial service sent Note No. 97 to the National Police command, instructing it to enforce the order. The document states that Peña must remain under arrest at his home until he is handed over to the Ministry of Public Prosecution and the specialized unit for economic crimes and the fight against corruption.
“He is now officially under arrest, he was notified, and he was informed that he would remain under house arrest,” a police officer told reporters outside Peña’s residence.An arrest order was also issued in the case for Carlos Dagoberto Carvalho Spalding, the former governor of the Central Bank of Paraguay. He is to be placed in a police unit designated by the police command. The orders were signed by prosecutors Cristian Manuel Benítez Cáceres, Elena Fiore Franco, Silvia Margarita González Vester and Ruth Karina Benítez.
Removal from the presidency
The measure against Peña was imposed hours after the Senate removed him from office. On November 6, 44 senators voted to find him guilty of “poor performance of his duties,” while one senator was absent. The decision was taken as part of an impeachment procedure prompted by the crisis surrounding Ueno Bank.
Paraguay’s Senate cited institutional shortcomings, a conflict of interest and alleged violations in the management and oversight of the financial institution. Santiago Peña denies the allegations and earlier said that he had resigned in order not to deepen the political instability. Nevertheless, parliament continued the proceedings and removed him from office.
What happens next
Following Peña’s removal, Vice President Pedro Alliana was sworn in as head of state. Peña is to be questioned by prosecutors, after which a criminal court judge will decide whether the house arrest should be extended or replaced with another measure.
The investigation also covers other current and former government officials, as well as executives of Ueno Bank. The institution’s collapse left millions of customers without access to their savings and triggered protests and a serious political crisis in the country. The allegations against Peña are the subject of a criminal investigation and do not constitute a final conviction.
Sources: apnews.com, abc.com.py, efe.com