Paraguay: Santiago Peña removed as president – vice takes over

It wasn't long ago that thousands of "corona refugees" emigrated to Paraguay and the influx into the small South American country from Germany continues to increase. They are looking for a freer life on the other side of the world. However, their new home is currently mired in a banking scandal that has even brought down the country's president.

The right-wing head of state Santiago Peña was removed from office by the Senate, and the Chamber of Parliament appointed the previous Vice President Pedro Alliana to the post as his successor. After his appointment, Alliana announced that he would not “abandon” those affected by the banking scandal.

After his appointment, the liberal-conservative Alliana addressed the millions of people in Paraguay affected by the scandal: "Compatriots who are currently going through a difficult time as a result of the financial collapse will be fully compensated," he promised. His term of office runs until 2028 and Senator Antonio Barrios was appointed as the new vice president.

The vote to impeach Peña was clear: all 44 senators present voted in favor. The Parliamentary Chamber has 45 members. Peña had “performed his office poorly,” said Senate President Basilio Nuñez. The deposed president was placed under house arrest shortly afterwards, as prosecutor Silvia González confirmed.

Millions of customers don't get any money

Hundreds of people loudly celebrated Peña's impeachment in front of the Senate. “Justice has been done,” said 32-year-old Jessica Aquino. "Now we want him to give us our money back and go to prison."

According to Paraguayan media, residents demonstrated in Peña's La Trinidad neighborhood and demanded that the deposed head of state spend the first hours of his detention in a normal prison. Peña is scheduled to be taken to the public prosecutor's office on Saturday, where he will be questioned about the alleged crimes of breach of trust, influence peddling and misappropriation of funds.

The crisis in Paraguay was triggered by Peña's ties to Bank Ueno, which was placed into receivership by the central bank this week due to a lack of capital. As a result, around three million customers were no longer able to get their money. On Friday, the South American country's Senate opened the impeachment trial against Peña after rejecting his request for a three-day delay.

Peña had already announced his resignation on Thursday. However, the necessary quorum to accept his resignation was not met in parliament. The impeachment prevented Peña from enjoying immunity as a life senator if he were to resign and thus avoid prosecution. Peña took over the presidency of Paraguay in 2023. He had previously been finance minister.

The banking scandal affects millions of people in the South American country. Almost half of Paraguay's approximately 6.4 million inhabitants have an account with the Ueno Bank. Until last year, Peña held shares in a group of companies that controlled the online bank. Against this background, the MPs accuse him of misconduct and a conflict of interest in his dealings with the Ueno Bank.