Paraguay’s Pena Impeached, Placed Under House Arrest Amid Banking Scandal

By Staff, Agencies

Paraguay's former President Santiago Pena, a close ally of US President Donald Trump and "Israeli" Prime Minister Benjamin Netanyahu, was impeached and placed under house arrest following a massive banking scandal that put nearly three million customers' savings at risk.

The Senate voted Friday to remove Pena over alleged misconduct linked to the collapse of Ueno Bank. 

Prosecutors subsequently ordered his house arrest on suspicion of breach of trust and other offenses.

 Former Central Bank chief Carlos Carvallo was also targeted in the investigation over allegations of financial irregularities and the diversion of public funds into the lender. Penahas denied wrongdoing.

The crisis erupted after regulators seized control of Ueno Bank over solvency concerns, freezing millions of customer accounts. 

The lender reportedly held more than $800 million in public deposits, including pension funds. 

The scandal triggered mass protests, while Senator Esperanza Martinez accused Pena and his associates of orchestrating a massive financial fraud involving more than 50 shell companies.

Vice President Pedro Alliana has since taken over the presidency and is expected to serve until August 2028. 

Meanwhile, Pena's political legacy has come under scrutiny, particularly his close ties with Washington and "Israel." 

He backed Trump's regional initiatives, joined his Board of Peace, and inaugurated Paraguay's embassy in Jerusalem in December 2024. 

He also supported the US-"Israeli" war against Iran and designated the IRGC, Hezbollah, and Hamas as banned organizations.