Paraguay has a new President after the Senate on Friday impeached Santiago Pena over the collapse of Ueno Bank, which left about three million depositors unable to access their money.
Senators voted 44 to nil to remove Pena, and swiftly installed the Vice-President, Pedro Alliana, as his successor.
Senate President, Basilio Nunez, said Pena was found “guilty of poor performance in his duties.”
Minutes after the vote, prosecutor Silvia Gonzalez Vester said the former President had been placed under house arrest.
He is being investigated for alleged breach of trust, influence peddling and misappropriation of funds linked to the supervision of the bank and the deposit of public funds in it and is expected to be questioned on Saturday.
Outside Congress, hundreds of protesters celebrated the outcome.
“Justice has been done. Now we want him to give us back our money and go to jail,” said Jessica Aquino, 32.
Placards reading “Pena in prison” were also seen at the scene.
Alliana, who will complete the term ending in 2028, assured depositors that they would get their money back.
“Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated,” he said.
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An opposition attempt to impeach him also failed.
The Central Bank said advance payments of up to about $1,600 had started reaching some affected customers, beginning with those who have no loans and hold accounts in other financial institutions.
Pena, an ally of the United States, held a stake in Grupo Vazquez, the owner of Ueno, until last year.
He denied conflict-of-interest allegations and offered to resign before lawmakers pressed ahead with the impeachment.
In a post on 𝕏 before his removal, he called on Paraguayans to unite “to rebuild our institutions and restore trust.”
The crisis has triggered nightly protests in Asuncion and other cities, with police using tear gas and water cannons to disperse demonstrators.
It has also led to the departure of Central Bank Governor Carlos Carvallo and Interior Minister Enrique Riera, as well as the arrest of eight bank executives.
In Argentina, about 1,000 staff of ITTI, a tech firm owned by Grupo Vazquez, were suspended without pay, while Paraguay’s national football team, sponsored by the bank, said it was “also a victim of this situation.”
NaijaNews
