State crisis in South America: Public prosecutor orders arrest of Paraguay's ex-President Peña

With his resignation, Peña was unable to avert impeachment proceedings. Due to the Senate's unanimous vote, he loses his right to a seat as a senator for life.

Protest in Asunción: Demonstrators gather in front of the house of deposed Paraguayan President Santiago Peña, who was placed under house arrest after his impeachment. Photo: AFP

New York. Paraguay's public prosecutor's office ordered President Santiago Peña's arrest shortly after his impeachment. The order also affects former central bank chief Carlos Carvallo. The authority is investigating suspicions of breach of trust and other crimes in connection with the bankruptcy of the digital bank Ueno.

According to the AP news agency, Peña will be held in his home until he is brought before the prosecutor's office.

The Senate voted unanimously to remove Peña from office. The Chamber of Deputies had previously voted unanimously in favor of it, as was seen on Paraguayan television. Vice President Pedro Alliana is expected to succeed Peña.

The senators agreed that Peña was guilty of dereliction of duty in office. The accused did not appear at the hearing in the Senate, but was represented by his lawyers. He had previously asked for the appointment to be postponed by 72 hours, but this was rejected by a clear majority of senators. The day before, Peña had announced that he wanted to defend himself.

The lawyers argued that the impeachment process was ineffective because Peña had resigned.

Impeachment instead of resignation

Peña submitted his resignation on Thursday to forestall impeachment proceedings. But the resignation request was not accepted at a joint meeting of the Senate and the Chamber of Deputies. The committee no longer had a quorum after numerous MPs left the room.

The controversy is not least about the question of the extent to which Peña can be legally prosecuted for possible involvement in the current banking scandal in the country. According to the Constitution, democratically elected former presidents become senators for life - with the express exception of: if they were found guilty in an impeachment trial. As a senator, Peña enjoyed parliamentary immunity.

MPs accuse Peña of favoring the digital bank Ueno while in office. He held a stake in its parent company and is said to have exposed public pension funds to the risk of loss by favoring it. Millions of people fear for their savings since the central bank began winding down the de facto insolvent bank.

More: Banking scandal brings down Paraguay's president