Paraguay’s ousted president, Santiago Peña, has been placed under house arrest after the collapse of digital bank Ueno Bank, linked to his private business interests, according to Radio România / BBC.

Peña was arrested Friday minutes after lawmakers — including members of his own party — voted unanimously to remove him amid the banking crisis. He had offered to resign Thursday; senators chose impeachment for misconduct in office, stripping the immunity usually kept by former presidents.

Ueno Bank’s collapse, after the central bank took it over, left more than half the population without access to savings; about three million depositors still cannot reach savings and pensions, sparking major protests in Asunción.

Charges centre on conflicts of interest, manipulation of financial supervision, diversion of pension funds and an alleged cover-up. Prosecutor Silvia Margarita Gonzalez Vester said the former president would be questioned over breach of trust, influence peddling and illegal appropriation of funds. Peña denies wrongdoing; his lawyer called the accusations “reckless” and “opportunistic.”

Vice-president Pedro Alliana was sworn in as interim president until 2028 and pledged full compensation for depositors. Senator Rafael Filizzola called it “the biggest corruption scandal in our democratic history.”

Source consulted: Paraguay’s ousted president placed under house arrest — Radio România.

Image: Asunción, Paraguay (Wikimedia Commons, CC BY-SA 4.0).

Sources consulted: Paraguay’s ousted president placed under house arrest — Radio România.