Paraguay impeaches president after major bank collapse

Summary

• Paraguay’s Senate has impeached and removed President Santiago Pena from office following the collapse of a major digital bank that left nearly three million customers unable to access their accounts.
• The impeachment charges also included allegations of weak regulatory oversight and concerns over the appointment of former Ueno executive Carlos Carvallo as head of the Central Bank.
• Authorities have also ordered the arrest of former Central Bank chief Carvallo.

AI Generated Summary

Paraguay’s Senate has impeached and removed President Santiago Pena from office following the collapse of a major digital bank that left nearly three million customers unable to access their accounts.

Vice President Pedro Alliana was sworn in as the new president on Friday. He will complete Pena’s remaining term, which runs until August 2028.

Pena was later placed under house arrest on suspicion of breach of trust. Prosecutors ordered him to remain at his residence until he appears before the Attorney General’s Economic Crimes and Anti-Corruption Unit.

All 44 senators present voted in favour of removing Pena, while one senator was absent. Lawmakers found him guilty of poor performance in office.

The decision came despite Pena offering to resign a day earlier. Senators continued with the impeachment proceedings, which also prevented him from receiving the lifetime Senate membership and parliamentary immunity normally granted to former presidents under Paraguay’s constitution.

Pena did not attend the Senate trial. His lawyers argued that he had not been given enough time to prepare his defence. They also challenged the proceedings and reserved the right to appeal to the Supreme Court and international human rights bodies.