Peña’s arrest deepens Paraguay’s Ueno Bank crisis

Peña’s arrest deepens Paraguay’s Ueno Bank crisis
Former Paraguayan President Santiago Peña was ordered into house arrest after the Senate impeached him, pending questioning by prosecutors investigating alleged irregularities connected to the Ueno Bank crisis. The order also targeted former Central Bank chief Carlos Carvallo, who was to be held in a police unit.

The two accounts agree on the central sequence: Peña was removed by the Senate and then detained as investigators examined possible breaches of trust, influence peddling and misuse of funds. They also note his former ties to the holding company that controlled Ueno and his appointment of Carvallo, previously a bank executive, to lead the Central Bank.

The Brazil Left account places the case in a broader political and social context. It says Ueno’s collapse followed an audit that found expenses allegedly disguised as assets and capital reserves below the legal minimum. The intervention reportedly froze cards and apps, prompting alarm among customers and protests by pensioners, workers and depositors seeking access to withheld salaries and accountability from officials.

The Brazil Right account gives greater weight to the institutional process. It reports that the Senate voted unanimously, 44–0, to remove Peña, that roughly 2.9 million customers were affected by the suspension of Ueno’s activities, and that Vice President Pedro Alliana was expected to take office. It also notes that Peña denies wrongdoing, while the inquiry extends to bank executives and other authorities.

Taken together, the reports depict the same crisis from different angles: one as a financial collapse with widespread public consequences, the other as an unfolding legal and constitutional transition. Neither account presents the allegations as proven; prosecutors are continuing their investigation.

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