Paraguay: Peña Removed From Office – Arrest Warrant Raises Unanswered Questions

TVS News AI, editorially supervised, presents Paraguay: Peña Removed From Office – Arrest Warrant Raises Unanswered Questions.

In the evening, the Paraguayan Senate unanimously voted to remove President Santiago Peña from office. The Chamber of Deputies had already reached the same result earlier that day. A few hours later, the Attorney General’s Office issued an arrest warrant against Peña. At the same time, former Vice President Pedro Alliana was sworn in at the Congress.

Amid an already severe financial and state crisis, a political leadership change has therefore coincided with a legal move. Peña faces accusations of involvement in the banking scandal. The investigations concern, among other things, the oversight of Ueno Bank, its resolution and the provision of public funds. According to the available information, there is neither an indictment nor a verdict.

Amid a turbulent financial and state crisis, Paraguay swaps out its president. Shortly afterward, an arrest warrant is issued against the former head of state.

Two Unanimous Votes Remove Peña

The proceedings in parliament

The Chamber of Deputies first voted to remove Peña from office, followed by the Senate, which also voted unanimously. According to the Senate, Peña had committed a breach of duty while in office. He did not appear in person for the hearing; his lawyers represented him.

Peña’s defenders had previously sought to postpone the hearing scheduled for the following day by 72 hours. According to the report, Peña had already announced his resignation. His lawyers therefore argued that the removal proceedings had become moot. However, neither the Senate nor the Chamber of Deputies accepted the request.

The removal proceedings therefore continued. According to the report, Peña hoped to prevent Congress from pushing ahead with his removal. Had the chambers acceded to his wishes, he would have become a senator for life as a former president and would consequently have enjoyed parliamentary immunity under the terms of the report.

Alliana Takes Office Until August 2028

The new head of state

Pedro Alliana was sworn in at the Congress shortly after Peña’s removal. He had previously served as vice president and will initially guide Paraguay’s affairs until August 2028. The 52-year-old businessman is regarded as economically liberal and conservative. Like Peña, he belongs to the traditional Colorado Party, which has led Paraguay for decades.

Alliana’s assumption of office comes at no stable time. At the center of the crisis is a banking scandal that has led the Central Bank to initiate a resolution procedure against Ueno Bank. According to the report, millions of people are worried about their savings.

The bank had grown into one of Paraguay’s largest institutions over the past few years. Its capital ratio had fallen to less than half the prescribed minimum. As a result, customers were sometimes unable to access their accounts. This explains why the political transition came so closely alongside the legal response: The president lost his office while financial regulators had already made the banking scandal the subject of several investigations.

Arrest Warrant Came Almost Simultaneously With Alliana’s Swearing-In

House arrest until he is brought before the court

Almost simultaneously with Alliana’s swearing-in, the judiciary began taking steps against Peña. The Attorney General’s Office imposed house arrest until further notice. Peña must be brought before the specialized unit for economic crime and anti-corruption. According to local media, this is expected to happen on Saturday.

The online portal “abc” broadcast footage showing police officers outside Peña’s home. It is therefore clear that more than a legal step was announced against Peña. The order requires him to remain at home until he is brought before the competent specialized unit. However, the available information does not unequivocally establish whether the arrest warrant had already been executed at that point.

An arrest warrant was also issued against Central Bank President Carlos Carvallo. He was required to leave his post after being accused of a conflict of interest arising from his previous work at Ueno Bank. The legal response therefore does not target only the former president but also reaches into the Central Bank’s former leadership.

The Investigations Define the Allegation So Far

Bank supervision, resolution and public funds

The Attorney General’s Office initiated several investigations into Peña on Thursday. Three areas are at the center: the supervision of the bank, the resolution of the financial institution and the provision of public funds for Ueno Bank. The allegation can therefore be described concretely, even though the criminal-law assessment of the individual matters remains pending.

Peña maintained business relationships with “Grupo Vázquez,” which included Ueno Bank, until March 2025. He rejected allegations of a possible conflict of interest. This distinction is important: The business relationship and the later investigations are temporally connected, but without a verdict, this does not yet constitute proof of his involvement.

The prosecution also confirmed the arrests of senior bank officials. In addition to Peña and Carvallo, other members of the Paraguayan government resigned: Interior Minister Enrique Riera, Chief of Staff Javier Giménez and Roberto Moreno, the legal adviser to the presidency.

The strongest argument against prematurely assigning guilt can therefore be directly substantiated: Peña rejected allegations of a possible conflict of interest, and the prosecution has not yet published a verdict against him. The arrest warrant is established. His guilt is not.

The Political Decision Is Not the Same as the Question of Guilt

Two separate questions

According to the senators, Peña’s removal concerned a breach of duty while in office. The arrest warrant concerns an allegation that warrants criminal investigation in connection with Ueno Bank. Both are important steps, but they answer different questions.

The unanimous votes in both chambers establish a robust political finding. Peña was not simply replaced after his government lost a portfolio. Parliament removed him during a financial and state crisis in which the Central Bank had initiated a resolution procedure for a major bank and customers had temporarily been unable to access their accounts.

Legally, the situation remains unresolved. The order requires Peña to remain under house arrest and announces his appearance before the specialized unit for economic crime and anti-corruption. The available information, however, identifies neither an indictment nor a verdict and therefore does not permit a finding on guilt or innocence.

The Facts Provide Clarity – But Not Yet a Final Outcome

What is established

At least these points are established: The Senate and the Chamber of Deputies each unanimously removed Peña from office. Pedro Alliana was sworn in as the new president and is to govern initially until August 2028. The Attorney General’s Office issued an arrest warrant against Peña and ordered house arrest. Central Bank President Carlos Carvallo is also subject to an arrest warrant.

What the report does not prove is equally clear: It establishes neither Peña’s guilt in the banking scandal nor a complete legal resolution of the case. The investigations into bank supervision, resolution and public funds are beginning just as the political decision to remove Peña has already been made.

For Paraguay, this is the decisive turning point. The country has experienced a new head of state and a legal escalation within a single turbulent day. As for the assessment of Peña, the conclusion remains: The arrest warrant has been reported; the question of guilt remains open.