Former Paraguayan President Santiago Peña was charged with breach of trust and self-dealing in the case surrounding the collapse of Ueno Bank. The charges were filed on November 7, one day after the Senate removed him from the presidency over the scandal surrounding the bank.
The initial information about a charge of „criminal conspiracy“ does not correspond to the formal legal classification announced by the prosecution. According to the indictment, Peña has been charged as an instigator in an alleged breach of trust and as the perpetrator of alleged self-dealing. He denies committing any wrongdoing.
Court Orders Pretrial Detention
Economic crimes judge Humberto Otazú ordered Peña to remain in pretrial detention to ensure his participation in the proceedings. The former head of state was taken to a unit of the presidential guard in Asunción.
The criminal proceedings are linked to allegations that, during his time in office, Peña participated in directing, renewing and retaining significant sums from state and pension funds at Ueno Bank. The prosecution also states that he had a prior economic and corporate relationship with Ueno Holding.
Banking Crisis Leads to Political
The Central Bank of Paraguay began proceedings to restructure and wind down Ueno Bank on November 3 after identifying a serious problem with the institution's solvency ratio. The freezing of accounts affected around 2.94 million customers in a country with a population of approximately 6.1 million.
The crisis triggered protests and political pressure against Peña. He announced his intention to resign, but parliament continued with the impeachment proceedings. On November 6, the Senate found him guilty of poor performance of his official duties and removed him from office. The presidency was assumed by Pedro Alliana.
Prosecution Allows for Harsher Sentence
Prosecutors said that under the current legal classification, Peña could face a sentence of up to 15 years in prison. Prosecutor Verónica Valdés clarified that the figure is linked to more than one alleged crime and could change if the charges are refined.
A further 27 people are being investigated in the case, including eight former executives of Ueno Bank. Former Central Bank Governor Carlos Carvallo has also been charged. The next procedural steps will determine whether the prosecution retains the current classification or files additional charges.
Sources: apnews.com, efe.com