Paraguayan court orders detention of former president Santiago Pena

A Paraguayan court ordered preventive detention on Saturday for former President Santiago Pena, who faces criminal charges following the collapse of Ueno Bank, Anadolu Agency reported.

Judge Humberto Otazu ruled that Pena should be held at the Presidential Escort Regiment headquarters in Asuncion, the capital.

The order came hours after the Prosecutor’s Office charged Pena with breach of trust, illicit enrichment through self-dealing and falsifying public documents. He spent nearly three hours answering questions at the State Attorney General’s Office before returning to military police custody.

Pena was initially arrested late Friday at his private residence. Police intervened to disperse protesters gathered outside. He then spent the night under guard at the Presidential Escort Regiment.

Earlier on Friday, a Senate trial resulted in lawmakers voting to remove Pena from office for “misconduct in office” and “poor performance of duties” in his administration’s response to the financial crisis.

The crisis began on Nov. 3, when the Central Bank of Paraguay intervened in Ueno Bank because of severe insolvency.

The bank’s collapse froze deposits belonging to 2.94 million clients, nearly half of Paraguay’s population. The affected depositors included critical public institutions and pension funds, among them the state-run Social Security Institute. The sudden loss of liquidity triggered large street protests in Asuncion, which police dispersed.

Prosecutors allege that Pena’s administration allowed high-risk public deposits into the private financial institution beyond legal safety thresholds, directly involving the government in the bank’s failure.

Newly sworn-in President Pedro Alliana, formerly the vice president and a fellow member of the ruling Colorado Party, began his first full day in office on Saturday as legal proceedings against Pena continued.

Alliana’s administration faces immediate pressure to fulfil promises of full compensation for depositors. Its executive attention is focused on stabilising the financial system and restoring public trust after the crisis.