Paraguay’s former president, Santiago Peña, is facing a criminal investigation following a major banking scandal involving Ueno Bank, one of the country’s largest financial institutions. On November 6, 2026, Paraguay’s Senate removed Peña from office through impeachment over allegations of misconduct and links to the banking crisis.
Prosecutors are investigating him on suspicion of breach of trust, influence peddling and misuse of public office for personal gain. Lawmakers allege that he used his political influence to direct hundreds of millions of dollars in public funds towards Ueno Bank while regulators failed to address risky financial activities. Peña has denied all allegations of wrongdoing.
The bank’s collapse left nearly three million customers unable to access their savings, triggering public protests and widespread anger. Following his removal, Vice President Pedro Alliana was sworn in as the new president. The investigation is continuing as authorities seek to determine responsibility for the financial crisis.
