Paraguay's former President Santiago Peña was impeached and arrested on November 6, 2026, following a political and financial crisis triggered by the collapse of Ueno Bank, a major digital lender that froze deposits for nearly three million customers and affected approximately half the country's population.
The Senate voted unanimously to remove Peña from office, with all 44 senators present voting to convict him of "mal desempeño de funciones" (misconduct in office). The impeachment stripped Peña of his presidential immunity and fuero, clearing the way for criminal prosecution. Vice President Pedro Alliana was sworn in as his successor shortly after the vote.
Minutes after his removal, prosecutors ordered Peña's arrest. He was initially placed under house arrest at his residence in Asunción on Friday evening, November 6. The following day, Peña was transferred to the Regimiento Escolta Presidencial (Presidential Guard Regiment) military facility.
On Saturday, November 7, Peña appeared before prosecutors and was formally charged with "lesión de confianza" (breach of trust) and "administración en provecho propio" (administration for personal gain). The Prosecutor's Office requested preventive detention, citing flight risk and the sensitive nature of information Peña possessed regarding organized crime and financial matters.
Judge Humberto Otazú, the economic crimes judge, ordered Peña to remain under preventive detention at the Presidential Guard Regiment while the investigation proceeds. Peña declined to make a statement during his appearance before the judge.
The charges relate to Peña's alleged role in directing hundreds of millions of dollars in public funds to Ueno Bank while serving as president. Peña held shares in Ueno Holding, the entity controlling the bank, until 2025. The bank's collapse left millions of depositors unable to access their savings and froze significant state pension funds.
Former Central Bank President Carlos Carvallo Spalding was also arrested and charged with similar offenses, including breach of trust, falsification of public documents, and administration for personal gain.
Peña's impeachment makes him the second democratically elected Paraguayan president to be removed through the process since the end of General Alfredo Stroessner's 35-year dictatorship in 1989. The charges carry potential prison sentences of up to 10 years.