The Senate of Paraguay dismisses Peña as president after the scandal over the closure of Ueno Bank
The former president, 47, was found guilty in a political trial in his absence, in the midst of the crisis over the closure of Ueno Bank; His successor, Vice President Pedro Alliana, will take over.
Quick Look
- The Senate of Paraguay dismissed President Santiago Peña, 47, after declaring him guilty of poor performance of duties in a political trial held in his absence, in the midst of the crisis unleashed by the closure of Ueno Bank.
- With 44 votes in favor, Peña became the second president removed by impeachment in the country's recent history, after Fernando Lugo (2008-2012).
- Vice President Pedro Alliana will take over as successor.
AI-generated summary
Why It Matters
Paraguay's Senate dismissed President Santiago Peña after finding him guilty of poor performance of duties in a political trial held in his absence. The measure is part of the crisis unleashed by the closure of Ueno Bank, an institution that received millionaire resources from public entities during Peña's mandate and which left thousands of savers without access to their resources, including 32,000 IPS retirees. Peña had presented his resignation on Thursday, but Congress did not act due to lack of quorum. Article 189 of the Constitution establishes that democratically elected former presidents will be senators for life unless they have been impeached and found guilty.
The Senate of Paraguay dismissed President Santiago Peña this Friday after declaring him guilty of "poor performance of duties" in a political trial held in his absence, in the midst of the crisis that sparked the closure of Ueno Bank and questions about the president's links with that financial entity.
With the vote in favor of the 44 senators present, Peña, 47, became the second president in the recent history of Paraguay to be removed from power through a political trial, after the leftist Fernando Lugo (2008-2012).
His until now vice president, Pedro Alliana, will take over as his successor.
The now former president did not attend the Legislature, despite having been personally summoned, and delegated his representation to the lawyers, Adolfo Ferreiro and Ricardo Preda, who presented Peña's "technical" and "legal" defense.
Paraguay entered a crisis after the Central Bank (BCP) ordered a resolution procedure for Ueno, an institution with 2.9 million clients in this country of 6.1 million inhabitants, which received millionaire resources from public entities during the mandate of the now former governor.
Added to this was the concern of thousands of savers who reported not having access to their resources, among them 32,000 retirees from the Social Security Institute (IPS), one of the main pension funds in the country.
Even the deputies who acted as accusers in the impeachment trial denounced the loss of some 1.2 billion dollars "from the Paraguayan people" after the closure of Ueno bank, and asked to declare the president guilty, whom they described as "the biggest embezzler in the history" of the country.
Peña remained in office after Congress did not rule due to lack of quorum on the resignation he presented this Thursday.
Article 189 of the Constitution of Paraguay establishes that democratically elected former presidents will be senators for life, "unless they have been impeached and found guilty."
A senator for life enjoys privileges and cannot be subjected to criminal proceedings without Congress approving the withdrawal of said immunity. With the dismissal, Peña will no longer be a senator for life.
Shortly before the vote, Peña stated in his X account that he had submitted his resignation to prevent further damage to the country and contribute to restoring tranquility.
What to Watch
AI outlook — possibilities, not facts
Pedro Alliana will assume the presidency of Paraguay and stabilize the government after the dismissal of Peña.
Very likely · Within hours
Legal and criminal investigations will be opened against Santiago Peña for his alleged responsibility in the closure of Ueno Bank and the embezzlement of public resources.
Likely · Within weeks
Open Questions
- What will be the legal and criminal consequences for Santiago Peña after the dismissal?
- How will the situation of IPS savers and retirees affected by the closure of Ueno Bank be resolved?
- What measures will the new president Pedro Alliana take to stabilize the financial system?
- Will additional investigations be opened into Peña's ties to Ueno Bank and use of public resources?
