By Zoila Palma: Paraguayan police have raided the home of former President Santiago Peña as part of an investigation into the collapse of Ueno Bank, one of the country’s largest digital banks.
The bank’s failure has triggered a major economic and political crisis, leaving nearly three million customers unable to access their savings and sparking widespread protests, Aljazeera reports.
Peña was removed from office on Friday after Paraguay’s Senate voted unanimously to dismiss him, rejecting his attempt to resign a day earlier.
Prosecutors have charged the former president with breach of trust and administration for personal gain, offences that could each carry prison sentences of up to 10 years. He has denied wrongdoing, while his lawyer, Ricardo Preda, said he would plead not guilty and cooperate with investigators.
Investigators allege that Peña used his political influence to direct large amounts of public funds into Ueno Bank despite concerns about its financial condition.
Peña reportedly held shares in the bank’s parent company until March 2025.
Prosecutors also allege that he obtained approximately $500,000 in loans from the bank in 2024 to construct his mansion. Former Central Bank chief Carlos Carvallo has also been charged in connection with the scandal and ordered into pretrial detention.
The bank’s collapse followed a Central Bank intervention after Ueno reportedly breached minimum solvency requirements.
Authorities found that the lender had made approximately $146 million in questionable loans to companies linked to its owner.
Newly sworn-in President Pedro Alliana said on Sunday that the government had refunded 1.2 million customers, with approximately $158 million paid out so far and additional reimbursements expected.
The post International News: Police raid home of former Paraguayan President in Ueno Bank collapse investigation appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Zoila Palma: Paraguayan police have raided the home of former President Santiago Peña as part of an investigation into the collapse of Ueno Bank, one of the country’s largest digital banks. The bank’s failure has triggered a major economic and political crisis, leaving nearly three million customers unable to access their savings and sparking
The post International News: Police raid home of former Paraguayan President in Ueno Bank collapse investigation appeared first on Belize News and Opinion on www.breakingbelizenews.com.
