Paraguayan lawmakers remove President Santiago Peña over Ueno Bank collapse

Paraguay's former President Santiago Peña has been taken in for questioning by prosecutors at the attorney general’s office just hours after being removed from power by Congress over the collapse of a major bank.

The sudden removal and subsequent questioning come as Paraguay's Central Bank works to compensate hundreds of thousands of people who were left unable to access their accounts following the bank's closure. The financial institution, Ueno Bank, had its operations frozen, leaving nearly 3 million customers locked out of their savings.

As Peña arrived at the attorney general’s compound, he was seen in drone footage taken by Paraguay's Telefuturo wearing navy blue pants and a white shirt, without being handcuffed. He was escorted to the compound in a black SUV accompanied by police officers.

The questioning is part of a wider investigation into allegations of breach of trust and other offenses tied to the bank's collapse, with prosecutors having ordered Peña's arrest along with that of former Central Bank chief Carlos Carvallo on Friday.

Paraguayan lawmakers have pressed on with impeachment proceedings against former President Mario Abdo Peña after his resignation was rejected by Congress.

Following Peña's departure, Vice President Pedro Alliana took over and began assembling a new Cabinet. Meanwhile, the Central Bank announced that 1.2 million Ueno customers had received reimbursement of their insured deposits, as mandated by Paraguayan law.

Opposition lawmakers have accused Peña of misusing his power to direct public funds into Ueno, while regulators allegedly turned a blind eye to high-risk lending practices involving insiders. The allegations have sparked widespread outrage and calls for accountability.

The crisis marks the most significant political upheaval in Paraguay in over a decade, with opposition Sen. Yolanda Paredes urging that Peña be held accountable by being sent to prison rather than allowed to leave office with immunity.

Peña's departure from office has sparked a mix of emotions in Paraguay as the country struggles to recover from the bank collapse. His farewell message expressed hope that his exit would prevent further harm to the nation.

Public outcry against Peña and Ueno continues to escalate with thousands of protesters clashing with police, demanding access to their frozen savings and accountability for the bank's failure. The largest teachers' union in Paraguay has announced plans to begin an indefinite national strike on Monday to protect public pension funds, adding to the pressure on authorities to take action against those responsible for the collapse.