Former Paraguay President Faces Up To 15 Years In Prison

Former Paraguayan President Santiago Peña, a notable supporter of Israel who moved his country's embassy to Jerusalem, is facing potential charges that could lead to up to 15 years in prison. The prosecution alleges he committed offenses including breach of trust and acting for personal gain in connection with the collapse of Banco Ueno. Peña was impeached and arrested last week following the scandal, which involved public funds deposited in the bank with which he had business ties.

The prosecution stated that the maximum sentence is applicable due to the nature and number of alleged offenses. The investigation also includes 27 other individuals from the bank and its affiliated companies, including eight former executives who could face up to 12 years in prison. The crisis erupted when Paraguay's central bank took over Banco Ueno due to insufficient capital and financial stability, leaving approximately three million customers unable to access their funds, including pensioners and holders of government pension and health funds.

Investigators suspect Peña interfered in decisions regarding the deposit of significant public and pension fund sums into the bank, as well as the renewal and retention of these deposits. His prior economic ties to the business group that owns the bank are also under scrutiny. A prosecution document indicates Peña held 1.58% of Banco Ueno Holding shares, a deposit, and a bond in another group company, selling the shares in March 2025 while already president.

Peña, 47, who took office in 2023, was impeached by the Senate on grounds of dereliction of duty related to the bank's collapse. Following his impeachment, he was arrested and officially charged by the prosecution. A court ordered his continued detention to ensure his appearance in court. He is reportedly being held at a presidential guard facility in the capital, Asunción.