Santiago Peña, President of Paraguay, has been impeached and removed from power following the collapse of the digital bank Ueno, which was linked to his personal business interests. This decision, made unanimously by lawmakers, including members of his own party, was taken in response to the expanding financial crisis resulting from this collapse.
Impeachment and Financial Allegations
Santiago Peña had proposed to resign from the presidency one day before his arrest, but instead of accepting his resignation, senators impeached him and accused him of misconduct in office. This action signifies the removal of the judicial immunity typically granted to former presidents. The allegations leading to his impeachment and removal include conflict of interest, manipulation of regulatory oversight, diverting pension fund resources, and involvement in organized concealment with the intervention of the central bank.
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Consequences of the Banking Crisis
The collapse of Ueno Bank, which occurred under the control of the central bank, has left more than half of Paraguay's population without access to their savings. Estimates indicate that around three million depositors have yet to access their savings and pensions. This situation has led to widespread protests in the capital, Asunción, effectively conveying the people's discontent to the authorities.
The prosecutor in the case has announced that today the ousted president will be interrogated regarding allegations of breach of trust, influence peddling, and embezzlement of financial resources. The impeachment motion against Santiago Peña was approved with the support of 44 senators out of a total of 45 members of the Senate, with only one senator absent from the session. The Senate President announced after the vote that Mr. Peña is accused of "failure to perform his duties."
Following the removal of Santiago Peña, Pedro Alliana, the Vice President, was sworn in as interim president and promised that those who are enduring hardships as a result of this financial collapse will receive full compensation. Pedro Alliana will remain in the presidency until 2028.
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