Congress rejects Peña's resignation - public prosecutor investigates

The Paraguayan public prosecutor's office wants to initiate criminal investigations against President Santiago Peña and other current and former government officials.

Attorney General Emiliano Rolón Fernández ordered three investigations into the Ueno Bank crisis on Thursday (local time). The focus is on state banking supervision, dealing with the collapse of the institution and the investment of public money in the bank.

The investigations are aimed, among other things, at possible failures in the control of the bank and the use of public deposits. Peña said he would cooperate with investigators. “Regardless of the outcome of these proceedings, I will act responsibly and with respect for the Constitution,” he wrote on X.

Resignation rejected

Peña had previously announced his resignation amid the threat of impeachment after the Ueno Bank collapse sparked nationwide protests and shook confidence in his government. The crisis turned Peña's long-ruling Colorado Party against him. The Chamber of Deputies voted unanimously in favor of impeachment shortly after Peña's announcement. Both chambers of parliament rejected his offer to resign.

Instead, the Senate decided to initiate proceedings that could lead to the president's removal. Opposition senators want to prevent Peña from having the opportunity to become a senator for life and thus enjoy legal immunity by resigning.

Peña, who until last year held shares in a company affiliated with Ueno, expressed remorse - but did not accept responsibility for the crisis. “I would like to apologize to people if I have disappointed them at any point,” he said. "It was never my intention to betray the trust they placed in me."