Paraguayan prosecutors file criminal charges against former president, request preventive detention

Paraguayan prosecutors today filed criminal charges against former President Penia, including breach of trust and profiteering, and requested the court to place him in preventive detention. Pena was suspected of being involved in the Ueno Bank collapse scandal. After Congress passed the impeachment yesterday, he was arrested by the police and detained at home.

Reuters reported that prosecutors also filed criminal charges against Carlos Carvallo, the former president of the Central Bank of Paraguay, on charges including breach of trust, making false official documents and profiteering, and requested that he be placed in preventive detention.

Lawyers for Santiago Peña have not yet responded to Reuters' requests for comment, and Cavallo's side did not respond.

Prosecutors alleged that Pena used his presidential power to influence the decisions of government agencies and state-owned enterprises, allowing large amounts of public funds to be deposited in Ueno Bank, although he still had financial relations with the bank. Prosecutors said the relationship constituted a conflict of interest as Pena encouraged, facilitated or influenced decisions that benefited the bank.

Peña was a shareholder of Ueno Bank Holdings until March last year. He denied any wrongdoing and said the issues facing the bank were regulatory matters.

Pena arrived at the Attorney General's Office earlier today to be questioned by prosecutors. After Congress voted to impeach him yesterday, Vice President Pedro Alliana was quickly sworn in. He will complete Pena's original term until August 2028.

Prosecutors pointed out that the two counts facing Penia each carry a maximum sentence of 10 years in prison. (Compiled by: Hong Peiying) 1151108