ASUNCIÓN, Paraguay – Paraguayan prosecutors have charged former President Santiago Peña over alleged irregularities involving public funds deposited with Ueno Bank, following a financial crisis that led to his removal from office and left millions of customers temporarily unable to access their accounts.
The Public Prosecutor’s Office filed the charges on November 7, accusing Peña of breach of trust as an instigator and administration for personal gain as a perpetrator. Prosecutors also requested his pretrial detention and measures to restrict the disposal of his assets while the investigation continues.
Peña denies wrongdoing. A judge subsequently ordered him held in pretrial detention at a military facility in Asunción while the criminal proceedings continue.
Prosecutors Detail Alleged Links Between Peña and Ueno
According to the official indictment, investigators are examining decisions involving the placement, renewal and continued deposit of public and pension funds with Ueno Bank between 2023 and 2026.
The prosecution alleges that Peña intervened in decisions concerning those funds while maintaining previous economic and corporate ties to the business group associated with the bank.
The investigation includes Peña’s former shareholding in Ueno Holding, transactions involving those shares and meetings with officials of the Social Security Institute (IPS) concerning investments in financial instruments issued by the bank.
The prosecutor’s office cited information from Paraguay’s Ministry of Economy and Finance indicating that, as of September 2026, deposits belonging to public institutions at Ueno Bank amounted to approximately 3.61 trillion guaraníes and US$233.4 million.
Prosecutors are also investigating whether the bank conducted irregular lending operations involving companies linked to its corporate group while receiving substantial public and pension funds.
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Bank Intervention Triggers Political Crisis
The crisis escalated after Paraguay’s Central Bank intervened in Ueno Bank on November 3, citing concerns over the institution’s financial condition and failure to meet minimum solvency requirements.
The regulatory action temporarily restricted access to accounts held by nearly three million customers, representing a substantial portion of Paraguay’s population of approximately 6.5 million.
The disruption affected individual depositors, businesses and public institutions that held funds with the digital lender.
The Central Bank said on November 7 that approximately 1.2 million customers had received partial or full reimbursement through the country’s deposit guarantee system.
Senate Removes Peña From Office
The banking crisis also triggered a political confrontation that ended Peña’s presidency.
On November 6, Paraguay’s Senate voted to remove him from office following an impeachment proceeding over alleged misconduct in connection with the bank’s collapse. Vice President Pedro Alliana was sworn in as his successor.
Peña had offered to resign before the impeachment vote, but lawmakers rejected that course and proceeded with his removal. His dismissal was based on a political judgment concerning his conduct in office and is separate from the criminal charges now being investigated by prosecutors.
Former Central Bank Chief Also Faces Charges
The investigation also implicates former Central Bank president Carlos Carvallo, who previously held an executive position at the financial company from which Ueno Bank developed.
Prosecutors charged Carvallo with breach of trust, the alleged production of false public documents and administration for personal gain. They are examining his role in the bank’s authorization, regulation and supervision, as well as the handling of information concerning its financial condition.
On November 9, investigators expanded their inquiries, including a search of the brokerage arm associated with Ueno and the recovery of shredded documents. The investigation remains ongoing, with authorities examining financial transactions, regulatory decisions and possible irregularities involving public resources.
The case has become a major test of Paraguay’s financial oversight and political accountability as depositors continue seeking access to their money and prosecutors pursue the allegations against former senior officials.
Primary Sources: Paraguay Public Prosecutor’s Office (Ministerio Público) — Prosecutors file charges against Santiago Peña and Carlos Carvallo and request pretrial detention and asset measures, November 7, 2026. The principal source for the formal charges, alleged conduct, public-fund figures and investigative measures. Paraguay Public Prosecutor’s Office — Ueno Bank case: Search conducted at property belonging to former president Santiago Peña, November 8, 2026. Confirms further investigative action following the filing of charges. Paraguay Central Bank (Banco Central del Paraguay) — Regulatory authority responsible for the intervention and supervision of Ueno Bank. Its official records should be consulted for the bank’s regulatory status and deposit-reimbursement figures.
