Ousted Paraguayan President Santiago Peña Faces Up to 15 Years in Prison
Former Paraguayan President Santiago Peña faces up to 15 years in prison following his impeachment and arrest over a major banking scandal involving public funds.
Former Paraguayan President Santiago Peña, widely recognized as a staunch ally of Israel in Latin America, faces up to 15 years in prison if convicted of charges related to the Ueno Bank scandal, according to state prosecutors and EFE reports. Peña was ousted from office and arrested last week following a major financial crisis centered on public funds deposited in a bank linked to his previous business ties.
The prosecution stated that the 15-year maximum sentence reflects the severity and plurality of the charges against Peña. Alongside the former president, authorities are investigating 27 other individuals associated with the bank and affiliated companies, including eight former executives who face up to 12 years in prison. The sweeping investigation stems from the collapse of Ueno Bank after the Central Bank of Paraguay took control of the institution over capital and financial stability deficiencies.
The banking crisis left approximately three million customers locked out of their accounts, paralyzing mobile applications, credit cards, and wire transfers, while pensioners were left unable to access their life savings. Furthermore, the crisis jeopardized between 800 and 850 million dollars in public funds, including government pension and healthcare reserves. The widespread financial paralysis sparked intense protests in Asunción and fueled political momentum for Peña's impeachment.
According to the indictment, Peña allegedly intervened in decisions regarding the deposit of significant public and pension funds into Ueno Bank, ensuring the renewal and retention of deposits despite his historical economic ties to the financial group. Court documents reveal that Peña previously held a 1.58 percent stake in Ueno Bank Holding, along with bank deposits and corporate bonds, selling his shares in March 2025 while serving as president.
Prosecutors have formally charged Peña with breach of trust and self-dealing, focusing on how he allegedly leveraged his political influence over public funds for personal gain amid pre-existing financial entanglements. Following his impeachment by the Senate on charges of dereliction of duty, Peña was arrested and remanded into custody at a presidential guard facility in Asunción to ensure his appearance throughout the judicial proceedings.
