Paraguay’s former president Santiago Peña has been charged over his alleged involvement in a banking scandal that led to his removal from office.

Prosecutors accused Peña of breach of trust and administration for personal gain. He denies wrongdoing and has described the allegations as politically motivated.

The charges follow the collapse of Ueno Bank, which had links to Peña’s private business interests. The bank’s failure left an estimated three million depositors unable to access their savings and pensions.

Peña was arrested on Friday, shortly after lawmakers voted unanimously to remove him from office. The impeachment vote received 44 out of 45 votes in the Senate, with one lawmaker absent.

Paraguay’s Bank Collapse Triggers Political Crisis

The impeachment proceedings accused Peña of conflicts of interest, interference with regulatory oversight and the diversion of pension funds. Lawmakers also alleged that he took part in a cover-up involving the central bank.

Peña previously held shares in the company that owned Ueno Bank until last year. He has consistently denied any wrongdoing.

Although Peña offered to resign, senators chose to impeach him instead. The decision removed the immunity normally granted to former presidents and opened the way for criminal proceedings.

Senate President Basilio Núñez said Peña was found guilty of dereliction of duty. Senator Rafael Filizzola described the scandal as one of the biggest corruption cases in the country’s democratic history.

However, Peña’s defence lawyer, Ricardo Preda, rejected the accusations. He described them as reckless and irresponsible.

Millions Affected by Bank Collapse

The collapse has caused widespread concern among depositors across Paraguay. The country’s central bank seized Ueno Bank after its financial failure.

Thousands of customers have been unable to withdraw their money. Long lines formed outside bank branches in the capital, Asunción, as people tried to access their savings.

The crisis also sparked protests across the country. Thousands of people took to the streets demanding access to their money. Earlier demonstrations resulted in clashes with police, who used tear gas and water cannons.

New President Promises Compensation

Following Peña’s removal, his deputy, Pedro Alliana, was sworn in as interim president. He promised that the government would not abandon those affected by the financial crisis.

Alliana said depositors who suffered losses would receive full compensation. He is expected to remain in office until 2028.

Meanwhile, prosecutors are pursuing charges against Peña as investigations into the banking scandal continue.