Paraguay Puts Ousted President Peña Under House Arrest

Paraguay's Congress impeached President Santiago Peña on Friday, and prosecutors ordered him placed under house arrest minutes later, as a banking crisis left roughly 60% of the country's adult population unable to reach their own money, The Guardian reported.

Public prosecutor Elena Fiore Franco confirmed Peña's whereabouts to local media outside his home in Asunción, Paraguay, saying he cooperated with officers.

"It has been established that he is indeed inside his home. He voluntarily allowed officers to enter and made himself available for all procedural purposes," Fiore Franco said, according to the Guardian.

Why was Santiago Peña impeached?

Impeachment proceedings opened Wednesday and concluded Friday, just before the arrest order, the Guardian reported. The case centers on allegations that Peña used political influence to favor Ueno, a digital lender that expanded rapidly during his government and was suspended this week after regulators found irregularities, according to the outlet. The public prosecutor's office opened a separate criminal investigation into Peña on Thursday on suspicion of illicit enrichment, money laundering and influence peddling, the Guardian said.

What caused Paraguay's banking crisis?

Ueno's suspension froze the accounts of 2.9 million people, about 60% of the country's adult population, the Guardian reported. Customers who had banked with Ueno could no longer access their own funds overnight, including for basic purchases such as bread and water, according to the outlet. The sudden freeze triggered protests nationwide, with some demonstrations turning into violent clashes with police, the Guardian reported.

Who is Paraguay's new president?

Vice-President Pedro Alliana was being sworn in as the country's new leader as Peña's arrest was carried out, the Guardian reported. The transition took place within minutes of the impeachment vote and the detention order, according to the outlet, leaving Alliana to take office amid the active banking freeze and street protests.

What happens to Ueno bank customers?

The Guardian's reporting does not specify a timeline for restoring access to frozen accounts or detail what regulatory remedy, if any, is planned for Ueno's 2.9 million affected customers. Protesters have taken to the streets of Paraguay demanding answers, the outlet reported, though the government response to those demands was not detailed in available reporting.

What did prosecutors say about Peña's role?

Beyond Fiore Franco's confirmation of the house arrest, the prosecutor's office has not publicly detailed the evidence underlying the illicit enrichment, money laundering and influence peddling allegations, according to the Guardian's account. Peña, described by the outlet as a rightwing president and an ally of United States President Donald Trump, has not been quoted responding to the allegations in available reporting.

The Guardian's South America correspondent, Tiago Rogero, is continuing to cover developments from the region; the full story is available here.