A Paraguayan judge has ordered former president Santiago Peña to be held in pretrial detention at a military facility. This decision, made on November 7, comes amid ongoing investigations into his connections to the now-defunct digital lender, ueno.
Peña, charged with breach of trust and administration for personal gain, is accused of using his presidential influence to protect public funds deposited with ueno, despite his financial ties to the institution.
Political Turmoil and Financial Crisis
We will submit to the investigation and I am sure that when this investigation is over the result will be the dismissal.
Ricardo Preda, Peña's Attorney
- Peña's detention follows his impeachment and removal from office.
- The financial crisis has affected nearly 1.2 million customers of ueno.
- Former central bank chief Carlos Carvallo has also been detained on similar charges.
The judge's ruling comes amid a significant political upheaval in Paraguay. Vice President Pedro Alliana has assumed the presidency, tasked with leading the country through this crisis.
Peña's ties to ueno have raised serious concerns. Prosecutors claim he influenced government decisions to maintain significant public funds with the lender. This alleged conflict of interest has sparked widespread public outrage.
As the situation unfolds, the central bank has reported that $160 million has been disbursed to help affected savers through a government-backed deposit guarantee scheme.