Paraguay ignores resignation request and continues impeachment process against Santiago Peña

The Senate of Paraguay ignored Santiago Peña's resignation request and continued to open impeachment proceedings against the president on Thursday night (5).

▶️ Context: The country is experiencing a deep political crisis after a scandal involving the failure of the "ueno" bank, which left millions of customers without access to their deposits, came to light.

ueno, which belongs to Grupo Vázquez, closed its doors on Tuesday (3), after the Central Bank began the process of liquidating the institution.

The monetary authority identified an insufficiency of resources to cover the bank's obligations, related to loans granted to companies linked to the institution.

The bank had around 3 million customers and concentrated approximately US$850 million in public deposits, including resources from the Social Security Institute.

Peña, who is also an economist, was a shareholder in the group that owns ueno until March last year.

After the scandal, the opposition began to accuse the president of conflict of interest, manipulation of rules and diversion of social security resources, among other irregularities. The accusation also points out that the Paraguayan Central Bank covered up problems at the institution.

Earlier, Peña submitted a video resignation letter. In the recording, he apologized to the population who lost access to their money and stated that he decided to leave office thinking about the country's stability.

On the other hand, according to Ariel Palacios, GloboNews commentator and specialist in Latin America, Peña tried to protect himself from future investigations and maintain the privileged forum by announcing his resignation. This is because, according to the Paraguayan Constitution, former presidents become senators for life.

The strategy, however, was frustrated after the Chamber of Deputies continued the impeachment process. The Constitution establishes that the former president loses his position for life if he is subjected to a political trial and found guilty.

Furthermore, it is up to the Paraguayan Congress to accept or reject the resignation of the president and vice-president of the Republic.

With the opening of the process by the Chamber, the case went to the Senate. An extraordinary session to vote on impeachment began on Thursday night.

What happens now?

Santiago Peña recognizes that health continues to be one of the country's main challenges — Photo: EPA

The Paraguayan Senate scheduled a new session for this Friday (6), at 10 am, when Santiago Peña is expected to present his defense in the impeachment process. The president will have the opportunity to contest the accusations made by the Chamber of Deputies and present evidence and arguments.

After the defense, senators will decide whether Peña will be convicted and lose his mandate. To do so, at least 30 votes are needed, equivalent to two-thirds of the 45 members of the Senate.

If convicted, Peña will also lose his status as senator for life. Vice President Pedro Alliana will take command of the country and is expected to complete his term, which ends in August 2028.

In a letter published this Thursday (5), Peña stated that he intends to collaborate with the courts to clarify the facts and defended that those responsible for any irregularities be punished.

He also said that Banco Ueno customers affected by the crisis must be compensated, regardless of the president's political future.