Former president dismissed from office the day before indicted on charges of breach of trust after major bank collapses, causing chaos - Paraguay

[São Paulo Current Affairs] On the 7th, prosecutors in Paraguay, South America, indicted former President Peña (47), who was dismissed from office the day before, on charges including breach of trust. In Paraguay, the bankruptcy of Ueno Bank, a major digital bank, has led to growing protests demanding the return of deposits and accountability. Conflict continues, with daily clashes between citizens and security authorities.

President Peña removed from office, placed under house arrest; protests grow as major banks fail - Paraguay

According to prosecutors, Peña is suspected of illegally intervening during his tenure in order to ensure that Bank Ueno was chosen as the depository for public funds. Mr. Peña had held shares in a company affiliated with the bank in the past, and prosecutors had questioned him on suspicion of a conflict of interest.

According to local media, the court on the 7th granted Peña's pre-trial detention. He was placed under house arrest on the night of the 6th, but security authorities and protesting citizens clashed near his home. It had been moved to the grounds of the military, which is responsible for protecting the president.

Former Vice President Ariana, who took over as president on the 6th, emphasized, ``I have ordered that compensation measures be taken immediately, with priority given to those who are economically vulnerable.'' Although he is calling on the public to remain calm, there are also voices calling for Ariana, a senior official in the former Peña administration, to be held responsible.