As reported by The Real News, former Paraguayan President Santiago Peña was transferred during the night from house arrest to an Armed Forces military unit following demonstrations outside his home in Asunción.
Senate Removes Peña After Ueno Bank Liquidation Proceedings
On Friday, November 6, the Paraguayan Senate officially concluded Peña’s removal from office through a unanimous vote. The political crisis erupted after the Central Bank of Paraguay initiated liquidation proceedings for Ueno Bank on Tuesday, November 3.
The institution had accumulated a severe deficit in its solvency ratios tied to loans granted to companies linked to its controlling entity, the Vázquez Group. Peña held shares in the Vázquez Group until March of last year.
The sudden closure of Ueno Bank blocked access to public deposits and funds from the Social Security Institute totaling approximately US$ 850 million. The institution served roughly 3 million clients, which accounts for nearly 40% of the Paraguayan population. Lawmakers swiftly accused the former president of conflicts of interest, regulatory manipulation, and the misappropriation of social security funds.
🔴 AHORA | Trasladan a Santiago Peña al Regimiento Escolta. En medio de momentos de tensión y protestas ciudadanas, la Policía respondió con disparos de balines de goma contra los manifestantes. La situación se desarrolla en medio de la crisis política que atraviesa Paraguay.
“Never before has anyone harmed 3 million people in the Republic of Paraguay in a single day, yet you managed to do just that,” opposition lawmaker Rocío Vallejo stated during a congressional session.
Citizens echoed this outrage on the streets. An interviewed protester outside Peña’s residence told The Real News, “Overnight, people have been left going hungry. People who can no longer even afford a bus fare. Why? Because of Santiago Peña and the entire Vázquez group.”
Prosecutors Place Peña Under House Arrest Amid Violent Protests
Following the Senate’s unanimous vote, prosecutors specializing in economic crimes requested Peña’s immediate arrest, leading the Public Prosecutor’s Office to place him under house arrest. Protesters gathered around his residence in the La Piedad neighborhood of Asunción, demanding that he be incarcerated in the formal Tacumbú National Penitentiary rather than held under house arrest.
The demonstration deteriorated into violent clashes with police. According to The Real News, Commissioner Pedro Barbera, head of the 10th Police Precinct, sustained an eyebrow injury during the skirmishes. Paraguayan intelligence later reported that agitators from earlier downtown protests had infiltrated the crowd with the intent of inciting violence.
📍 Manifestación pacífica en el microcentro de Asunción. También piden la salida de otras autoridades.#MóvilABC- @joseheid- 🔴 EN VIVO: https://t.co/YoLVF0INgo
Footage captured by the newspaper ABC Color showed individuals throwing eggs and shouting insults as three military pickup trucks extracted Peña shortly before midnight on Friday, November 6. The Argentine digital news outlet Infobae detailed that the Armed Forces coordinated the extraction to counter the untenable security situation outside the residence.
Peña was relocated to a military unit. Legal questions immediately surrounded the move. The Real News noted that as of publication, neither the judiciary nor the Public Prosecutor’s Office had formally authorized the change in detention venue, and the specific conditions of his imprisonment at the military facility remained undisclosed.
Pedro Alliana Becomes Head of State as Legal Scrutiny Begins
Amid the institutional turmoil, the Paraguayan Congress swore in former Vice President Pedro Alliana as the new head of state.
Peña was summoned to appear before the Public Prosecutor’s Office for his first formal hearing to face questioning regarding alleged crimes including breach of trust, influence peddling, and embezzlement. Meanwhile, millions of account holders await the return of their frozen assets as the country’s judicial system begins its prosecution.
