A judge in Paraguay ordered ousted president Santiago Peña held in pretrial detention at a military facility on Saturday, Nov. 7, as prosecutors investigate his ties to collapsed digital lender Ueno, Reuters reported in a story published by CBC.

Judge Humberto Otazú said detention was necessary to ensure Peña remained in the country while the case proceeded. Peña faces charges of breach of trust and administration for personal gain, each carrying a possible sentence of up to 10 years, according to the prosecutor.

Peña denies wrongdoing. His lawyer, Ricardo Preda, told journalists that the former president was pleading not guilty and expected the investigation to end in dismissal of the case.

Prosecutors allege Peña used his presidency to influence government agencies and state-owned entities to keep large amounts of public money at Ueno despite his financial ties to the lender. Peña was a shareholder in Ueno’s holding company until March 2025. He has said the bank’s problems were a regulatory matter.

The detention order came a day after Peña’s removal from office. Vice-President Pedro Alliana was sworn in Friday to complete the presidential term through August 2028.

Prosecutors also charged former central bank chief Carlos Carvallo with breach of trust, producing false public documents and administration for personal gain. Their request for his pretrial detention remained before the court. Carvallo did not respond to a request for comment, Reuters reported.

Ueno’s collapse has left millions of customers struggling to access their accounts and prompted protests in Asunción. Paraguay’s central bank said Saturday that nearly 1.2 million savers had received payments equivalent to US$160 million under the state deposit guarantee scheme.

Sources