President Santiago Pena was recently removed from office by the Senate of Paraguay following a banking scandal tied to the administration. The Senate subsequently appointed the former Vice President, Pedro Alliana, as the country’s new head of state. Alliana has pledged to support those harmed by the scandal and announced that all affected parties resulting from the financial collapse will be fully compensated.
The impeachment occurred on Friday (local time), with all 44 senators present voting unanimously to strip Pena of his duties. Senate President Basilio Nunez stated that Pena had “mismanaged his office.” Shortly after his dismissal, Pena was placed under house arrest. Paraguayan authorities have confirmed that the former president is under arrest at his residence in the La Trinidad neighborhood, though demonstrators have called for him to be held in a regular prison immediately.
The banking controversy that led to this crisis affects millions of people in Paraguay. Ueno Bank, which Pena had connections to, was placed under mandatory administration due to lack of capital, leaving approximately three million customers unable to access their funds. Until recently, Pena held shares in a corporate group that controlled the bank. Legislators accused him of misconduct and conflicts of interest. Although Pena, who is noted as being an ally of the U.S. government of Donald Trump, had already submitted his own resignation, the parliament rejected his request in order to prevent him from potentially acquiring lifelong immunity.
