The Senate’s 44-0 vote concluded impeachment proceedings that began on Wednesday. By convicting Peña rather than accepting his resignation submitted on Thursday, lawmakers ensured he would not retain special legal protections. Under Article 189 of the Paraguayan Constitution, this conviction removes his status as a former president, making him subject to investigation for alleged links to the collapse of digital bank Ueno.
Peña is being investigated on suspicion of illicit enrichment, money laundering, and influence peddling. The impeachment articles, filed by 35 opposition lawmakers and ruling-party dissidents, alleged that Peña prioritized commercial interests over state responsibilities by retaining shares in Ueno Holding until April 2025. Prosecutors also cited two personal loans from Ueno and alleged improper interference in the Social Security Institute (IPS), which held $355 million in deposits at the bank—approximately 9% of its total investments.
The crisis stems from Ueno’s suspension on November 3 due to financial irregularities. The freeze on accounts left 2.9 million customers, about 60% of Paraguay’s adult population, unable to access funds for basic necessities. Former Central Bank President Carlos Carvallo Spalding, who was appointed by Peña in 2023 and had previously chaired Ueno’s parent company, has also been detained as part of the investigation. Authorities noted that Carvallo’s tenure saw Ueno convert from a financial institution to a digital bank just 83 days after his appointment.
Vice President Pedro Alliana was sworn in as the new president during an extraordinary congressional session, assuming the remainder of the term until August 2028. Alliana stated that citizens affected by the financial collapse would receive full compensation. Peña, who had previously denied allegations of misconduct, was detained at his residence in Asunción. Prosecutor Elena Fiore Franco confirmed that Peña voluntarily allowed officers to enter his home and made himself available for procedural purposes.
Dozens of protesters gathered outside Peña’s residence as police maintained a security cordon. The next procedural step involves Peña appearing before the Anti-Corruption Unit prosecutor to formalize the criminal charges. No specific sentencing date or appeal deadline for the criminal case has been announced, as the investigation is ongoing.
