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Paraguays Senate on Friday (local time) voted to impeach President Santiago Pea, with 44 of the 45 members backing his removal from office over his alleged links to the collapse of Ueno Bank, which triggered a major financial scandal and a criminal investigation, CNN reported.
According to CNN, Vice President Pedro Alliana was sworn in as the countrys new president shortly after the vote. Pea, who announced his resignation on Thursday amid mounting pressure, has been placed under house arrest pending a judges decision on his custody arrangements during the criminal proceedings, prosecutor Christian Bentez told CNN. The prosecutors office said it had ordered Peas arrest in connection with the Ueno Bank crisis. The impeachment vote also removes his parliamentary immunity, paving the way for further legal proceedings against him. According to CNN, Paraguays Attorney General has opened three criminal investigations involving Pea and other former officials over the banks collapse. The cases relate to the supervision and resolution of Ueno Bank, the placement of public funds in the institution and the actions of officials from various state institutions. The impeachment proceedings followed allegations by 35 opposition lawmakers and dissidents from the ruling party, who accused Pea of serious and systematic dereliction of duty over his dealings with the bank. Although Pea did not attend the Senate proceedings, his legal team, comprising attorneys Adolfo Ferreiro and Ricardo Preda, represented him before lawmakers. The Senate had rejected his request for a 72-hour extension to prepare his defence, CNN reported. Pea submitted his resignation while lawmakers were debating the charges against him. Earlier, the Chamber of Deputies had voted unanimously to initiate impeachment proceedings following his announcement. This guy, Santiago Pea, needs to be jailed. An arrest warrant must be issued pretrial detention, straight to jail, Senator Yolanda Paredes told reporters, as quoted by CNN. Pea said he had decided to step down to provide reassurance to Paraguayans who had entrusted their savings to the country's financial system. I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind, he said in a message posted on social media. The crisis erupted after Paraguays Central Bank intervened in Ueno Bank, a private financial institution with which Pea had business links. During his administration, the bank had received millions in funds from public entities, including the Social Security Institute (IPS), which manages pensions for most of the countrys workers, CNN reported. The Central Bank found that Ueno Banks solvency ratio had fallen below 50 per cent of the required minimum following adjustments to its financial statements during the regularisation process. The institution had approximately 2.9 million customers in a country with a population of 6.1 million. Authorities also said the bank had breached limits on lending to related companies. Its intervention and subsequent resolution proceedings left millions of customers unable to access their savings, triggering anxiety, long queues at banks and street protests. Attorney General Emiliano Roln Fernndez ordered three investigations into the circumstances surrounding the bank's supervision and resolution, the placement of public funds in the institution and the conduct of officials from different state institutions. The Central Bank announced on Thursday night that it would begin processing guarantee payments to certain Ueno customers in phases. Pea, 44, took office in August 2023 for a five-year term and was among the youngest presidents in Paraguays history. He previously served as Finance Minister from 2015 to 2017 under former president Horacio Cartes and also worked as a director of the Central Bank. He is also regarded as one of the staunchest allies of US President Donald Trumps administration and has aligned himself with its political priorities, particularly on immigration and security. The bank crisis comes as Paraguay has sought to establish itself as a regional financial hub, building on the investment-grade status it secured in recent years after receiving recognition from two of the worlds leading credit rating agencies. The developments have dealt a major political and financial blow to the country, with Pea now facing criminal proceedings following his removal from office. (ANI)
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