Peña loses key aides as Paraguay Senate resumes impeachment vote
The collapse of Ueno Bank has triggered a constitutional fight over whether the president resigns or is removed from office.
By Luis Medina ·
Paraguayan President Santiago Peña lost his top three aides just hours before the Senate resumed his impeachment trial. The resignations stripped him of support as lawmakers voted to reject his request for a 72 hour extension to prepare a defense. The trial, which began Friday, could remove Peña from office over his ties to the failed digital lender Ueno Bank.
Interior Minister Enrique Riera stepped down late Thursday. On Friday, Chief of Staff Javier Giménez and Legal Adviser Roberto Moreno followed suit. They quit as Peña prepared to defend himself before the 45 member Senate. The president argued he only received the summons hours before the session. He said the delay left him without time to hire a lawyer or review roughly 300 pages of accusations and evidence. Peña posted on X that the process denied him due process.
The crisis stems from the collapse of Ueno Bank. Regulators seized the institution before dawn on Tuesday. The bank served nearly half of the country's population, freezing the savings of millions. The shock upended a nation previously viewed by investors as one of South America's most stable economies. Within three days, the implosion plunged Paraguay into its deepest political crisis in over a decade.
Peña initially offered to resign on Thursday afternoon. He told supporters in a video address that it was never his intention to betray their trust. Protesters in Asunción and other cities clashed with police that same day, demanding accountability. The former President Horacio Cartes, who mentored Peña and leads the conservative Colorado Party, publicly backed the ouster. The lower house of Congress voted 78 0 to impeach the president and send the case to the Senate.
Paraguay's constitution creates a strategic dilemma for the president. If he resigns voluntarily, he becomes a senator for life with parliamentary immunity. This shield could protect him from prosecution. His allies want Congress to approve this resignation. Opponents want the Senate to convict and remove him. When allies realized they lacked the votes to stop the process on Thursday, they walked out. That action left too few lawmakers present to proceed, keeping Peña in office temporarily.
Conviction requires 30 votes in the Senate. Vice President Pedro Alliana will serve through August 2028 regardless of the outcome. Alliana survived his own impeachment attempt on Thursday. The charges against Peña focus on his financial ties to Ueno. Lawmakers cite his stake in the bank's holding company, which he sold last year. They also point to his appointment of a former Ueno executive to run the central bank. Accusations include allowing public pension deposits at the bank to exceed legal limits.
Prosecutors opened three criminal investigations on Thursday. These include complaints against Peña, Alliana, and current and former officials at the central bank and state pension fund. Former Ueno CEO Miguel Vázquez faces charges of breach of trust and attempted fraud. A judge ordered six bank directors held in pretrial detention. Police raided company offices in Asunción and towed nine luxury vehicles from Vázquez's home early Friday. The central bank states the collapse is an isolated case and insists the financial system remains safe. Nearly 3 million customers still cannot withdraw cash or use digital payments.
