Paraguay's Senate unanimously removes Peña, Alliana sworn in, ex-president under house arrest

Paraguay's Senate removed President Santiago Peña on the evening of November 6 for "poor performance of his duties", with the votes of all 44 senators present, AP and Diario HOY report. Of the 45 senators, only Enrique Riera was absent. The Chamber of Deputies had earlier impeached Peña 78–0, and before the verdict the Senate voted 24–20 not to accept his resignation and rejected his request for a delay.

Vice-President Pedro Alliana was sworn in shortly after the vote and will serve until August 2028. "I don't want anyone lukewarm in charge of this mission. I want results," he said in his inaugural speech, promising compensation for affected customers.

House arrest

Prosecutors placed Peña under house arrest on suspicion of breach of trust, the attorney general's office confirmed to AP, and ordered the arrest of former central bank governor Carlos Carvallo. "I do not want my presence to be a cause of greater division or instability," Peña said in a farewell message.

The Ueno collapse

Digital bank Ueno was seized on Tuesday; about three million customers lost access to their money, and the bank held more than $800 million in public funds. Lawmakers allege the state pension fund deposited $355 million at Ueno, beyond legal limits. Twenty-seven people have been charged, including controlling shareholder Miguel Vázquez, and six bank directors are in detention. Deposits are insured up to about $37,000.

Update, November 7

Before dawn on Saturday Peña was moved from his family home to the Presidential Escort Regiment in Asunción "for security reasons", after crowds gathered outside; some media still report he is under house arrest. Prosecutors charge him with breach of trust, attempted fraud and illicit enrichment, and four prosecutors have requested pre-trial detention and an asset freeze; the court has not yet ruled. Former central bank governor Carlos Carvallo turned himself in on Friday night. The deputies who brought the impeachment put the loss from the Ueno collapse at $1.2 billion. "He created a $1.2 billion hole for the Paraguayan people," said deputy Rocío Vallejo.

Charges and detention request

On November 7 prosecutors charged Peña with breach of trust and self-serving administration and requested pre-trial detention; each offence carries up to ten years in prison. Carvallo was charged with the same offences plus producing false public documents, and detention is also sought for him. Both refused to answer questions. "It would look more like a show for the public," Peña's lawyer Ricardo Preda said of the detention request. The court has not yet ruled.