Paraguayan justice officials searched the home of Santiago Pena, who is under investigation for breach of trust and misappropriation of funds following the collapse of Ueno Bank

Paraguay’s judiciary searched the home of former president Santiago Pena on Sunday, as part of an investigation into the collapse of Ueno Bank, an institution placed under the Central Bank’s administration on Tuesday due to insolvency. The banking crisis blocked the deposits of nearly three million people, representing approximately half of the country’s population, and triggered a political crisis.

The Prosecutor’s Office stated that the search concerns allegations of breach of trust and diversion of funds for personal purposes. Pena was placed in provisional detention on Saturday, and the Senate unanimously found him guilty of “malfunctioning in the exercise of his duties” before removing him from office.

According to the indictment reviewed by AFP, the former president, who held shares until 2025 in the holding company that owns the bank, allegedly oversaw the concentration of public funds and pension funds worth more than 800 million dollars. The document also states that Pena received two loans of approximately 500,000 dollars from Ueno Bank in May 2024 to build the house that was searched.

Vice President Pedro Alliana, who assumed power, announced that the affected individuals would not pay fines, penalties, or interest. Nearly 1.2 million depositors have already received approximately 158 million dollars, and repayments are set to continue.