Raid on the mansion of the deposed Paraguayan President: 'Israeli-made' secret safe found behind the wall

The political and financial crisis that started with the collapse of Ueno Bank in Paraguay gained a new dimension with the investigation into the assets of deposed former President Santiago Peña.

According to Paraguayan newspaper ABC Color, shortly before 19:00 local time on Sunday, prosecutors and police teams raided Peña's luxury summer mansion in the Ciervo Cua district of San Bernardino city.

The raid was carried out as part of the investigation into abuse of trust and personal gain against Peña, who was impeached by Congress last Friday and then arrested.

HIDDEN SAFE BEHIND THE WALL

According to the initial information provided by ABC Color, a special safe hidden behind a false wall was detected during the search of the mansion.

It was reported that the safe, which was stated to be protected by an advanced security system of Israeli origin, could not be opened during the operation. It is not yet known what was in the safe or what it was used for.

According to the newspaper's observations at the scene, although Peña was dismissed on Friday, Presidential Guard Regiment personnel were still on guard around the mansion on Sunday.

Luxury mansion financed with loans from bankrupt bank

At the center of the investigation against Peña are Ueno Bank, which was closed last week due to its insolvency, and the Grupo Vázquez group of companies to which the bank is affiliated.

It is stated that the former president was a shareholder in the group of companies in question until last year.

WHERE WERE BANK LOANS USED?

According to documents previously published by ABC Color, the construction cost of Peña's summer mansion in San Bernardino is approximately 7.7 billion Paraguayan guaranis (approximately 60 million TL).

On May 13, 2024, the bank granted Peña two loans at the same time for the construction of his summer residence. The total amount of loans was recorded as 3 billion 548 million guaranis.

Financial data revealed by ABC Color also revealed the huge difference between the former president's loan payments and his official income.

While Peña's monthly salary during his presidency was 37 million 908 thousand 800 guaranis (approximately 300 thousand TL), the monthly installments of the loans reached 239 million guaranis.

Thus, monthly loan payments amounted to approximately 6.3 times Peña's official presidential salary.

WHAT IS HAPPENING IN PARAGUAY?

The Central Bank of Paraguay announced that its activities were terminated last Tuesday due to the serious deterioration in Ueno Bank's solvency indicators.

According to the Central Bank, the deterioration of the bank's financial situation was caused by illegally granting large amounts of loans to businesses affiliated with the same group of companies.

The collapse of Ueno Bank also led to an investigation of public resources and political relationships connected to the bank.

The prosecutor's office evaluates that former President Peña may have been involved in the processes of depositing large amounts of money belonging to public institutions and social security institutions to Ueno Bank, renewing these deposits and keeping them in the bank.

The investigation file focuses on the allegation that Peña may have gained personal benefit in decisions regarding the use of public resources in the bank.

Senior executives of Ueno Bank were also detained last week and charged.

WHAT HAPPENED TO PRESIDENT PENA?

The Paraguayan Congress suspended Santiago Peña from the presidency following the impeachment process on Friday, November 6.

After his dismissal, Peña was detained by the prosecutor's office and charged with abuse of trust and personal gain.

The former president is being detained at the headquarters of the Presidential Guard Regiment in the capital Asunción.

In the next stage of the investigation, it is expected to open the secret safe in the mansion and examine the financial records of the loans used from Ueno Bank.

The charges against Peña have not yet been adjudicated by a final court decision.