The Paraguayan Senate opened a session on Thursday to begin a parliamentary inquiry against President Santiago Peña, following his resignation and the failure of a joint parliamentary vote that would have triggered the succession mechanism. The inquiry is being launched under Article 225 of the Constitution, which allows the Senate to conduct a trial‑in‑political (juicio político) for “serious and systematic misconduct” in the performance of presidential duties. During the session, opposition deputy Rocío Vallejo, who has been appointed as one of the prosecutors, said, “We come to file the accusation in accordance with the mandate received.” The Senate will act as the adjudicating body, with the first stage involving the recognition of the deputies as prosecutors, and the second stage scheduled for the following morning when senators will take the oath to form the tribunal. Peña remains formally in office because the joint parliamentary session that would have accepted his resignation failed to reach quorum. If the Senate were to remove him, he would lose the lifetime senatorial immunity he currently holds; however, a resignation would preserve that status. The inquiry is linked to the crisis that erupted after the Central Bank of Paraguay (BCP) ordered the resolution or closure of Ueno Bank on Tuesday. The bank’s solvency ratio fell below the required 50 % threshold, prompting the BCP to take immediate action. The move has affected the savings of thousands of users and raised concerns about the fate of public pension funds held in the institution. The Chamber of Deputies approved the accusation unanimously on Thursday, citing Peña’s alleged “grave and systematic mismanagement” of his duties. Vallejo described the situation as “a dark day in the financial sector, with the collapse of a bank that has impacted three million Paraguayans, nearly half the country’s population.” She also warned that many public institutions have lost or will lose their savings, noting that the BCP’s decision to close Ueno was made without prior intervention. The accusation also alleges conflicts of interest, state cooptation, and revolving-door practices, referencing Peña’s actions related to Ueno Holding—a conglomerate that includes Ueno Bank. Peña reportedly sold his shares in the holding in March 2025. This is the second time a Paraguayan president has faced a parliamentary inquiry. The first was former left‑wing president Fernando Lugo, who served from 2008 to 2012 and was ultimately removed from office.
Article source: El Nuevo Diario | Image credit: El Nuevo Diario