Paraguayan prosecutors charged former president Santiago Peña on November 7 with breach of trust and administration for personal gain, seeking his detention pending trial a day after lawmakers removed him from office over the collapse of digital lender Ueno.

Prosecutors also charged former central bank chief Carlos Carvallo with breach of trust, producing false public documents and administration for personal gain. They asked a court to order pretrial detention for both men, according to reports from CBC and Al Jazeera.

Peña appeared at the Attorney General’s Office in Asunción on Saturday morning. Al Jazeera reported that he had been placed under house arrest on Friday following his impeachment.

The allegations centre on whether Peña used presidential influence to keep public money at Ueno while maintaining financial ties to the lender. According to prosecutors cited by CBC, he encouraged, facilitated or influenced decisions by government agencies and state-owned entities that benefited the bank, creating a conflict of interest.

Peña held shares in Ueno’s parent company until March 2025. He has denied wrongdoing and described the bank’s difficulties as a regulatory matter. CBC reported that his lawyer and Carvallo did not immediately respond to requests for comment.

The banking crisis has disrupted access to accounts for millions of customers. Al Jazeera reported that regulators took control of Ueno on Tuesday, November 3, amid concerns about its solvency, leaving nearly three million people unable to access savings or use bank cards.

The collapse has also triggered protests in Asunción and elsewhere in Paraguay. According to Al Jazeera, some demonstrations have involved clashes between protesters and police as customers demand access to their money.

Reimbursements are under way. The central bank said Saturday that the equivalent of US$160 million had been paid to nearly 1.2 million savers through the state deposit guarantee scheme, CBC reported. Al Jazeera described the payments as partial or full reimbursement of insured deposits.

Peña’s removal brought Vice President Pedro Alliana to power. The Colorado Party politician was sworn in on Friday to complete the presidential term through August 2028, according to CBC. Al Jazeera reported that Alliana has pledged to help customers affected by the collapse.

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