PRESIDENT SANTIAGO PEÑA REMOVED FROM OFFICE AND ARRESTED AFTER BANK COLLAPSE

ASUNCION, NOVEMBER 7 /SRNA/ - Paraguayan President Santiago Peña has been removed from office, arrested, and placed under house arrest following the collapse of digital bank Ueno, which is linked to his former business interests.

Prosecutor Silvia Margarita González Vester said Peña would be questioned today on suspicion of breach of trust, influence peddling, and misappropriation of funds.

Forty-four of the 45 senators voted to remove Peña from office last night, including members of his own party, while Senate President Basilio Núñez said the president was guilty of negligence in the performance of his duties, the BBC reported.

The senators accused him of conflicts of interest, manipulating regulatory oversight, diverting pension funds and covering up irregularities involving the central bank.

Peña, who until last year owned shares in the company that owned the bank, denied any wrongdoing.

His lawyer, Ricardo Preda, dismissed the accusations as "reckless, irresponsible and opportunistic."

Because of the bank's collapse after it was seized by the central bank, around three million people who had kept their money there lost access to their savings and pensions, sparking protests, particularly in the capital, Asunción.

Vice-President Pedro Alliana was sworn in as interim president and pledged that citizens affected by the financial collapse would be fully compensated.

He will serve in that capacity until 2028.

Senator Rafael Filicola described it as the biggest corruption scandal in Paraguay's democratic history.

In his address to the nation, Peña expressed regret, saying that he had "never intended to betray the trust of the people.“