Paraguay Political Crisis: President Santiago Pena Removed Through Impeachment, Placed Under House Arrest

New Delhi: The banking crisis has caused a major political upheaval in the South American country Paraguay. President Santiago Pena has been removed from office through impeachment amid the controversy arising after the collapse of Ueno Bank. In his place, Vice President Pedro Aliana was sworn in as the country's new president on Friday. After this incident, Pena has been placed under house arrest at his residence. He has also faced several serious allegations during the investigation of the bank crisis, although he has denied any wrongdoing. 

How did Santiago Pena's chair go?

Paraguay's Senate voted unanimously on November 6 to remove Santiago Peña from office, completing impeachment proceedings. 44 MPs present in the voting gave the decision against him, while one MP remained absent. The Senate convicted Peña of poor performance in the discharge of his duties. Earlier on Thursday, Pena had offered to resign from the presidency, but lawmakers continued the impeachment process. 

Who will become the new President?

Vice President Pedro Aliña took the oath of office following the ouster of Santiago Peña. He will hold the command of the country till the year 2028. After taking oath, Aliana assured to provide compensation to the people affected by the Ueno Bank crisis. He said that the depositors facing difficulties due to the collapse of the bank will not be left alone. 

What is the whole matter of Ueno Bank?

Paraguay's fast-growing digital bank Ueno was taken over by the central bank after its financial situation deteriorated. The bank's solvency had fallen below the prescribed legal minimum level. After this action, accounts and savings of about 30 lakh customers were affected. The bank also had large sums of money deposited with government institutions and pension funds. According to reports, there was approximately $850 million of public funds in the bank.

What are the charges against Pena?

Opposition leaders have accused Santiago Pena of conflict of interest, interference in bank supervision and misuse of public funds. Investigative agencies are also investigating the monitoring of the bank and the decisions regarding depositing government money in it. Pena's past business ties with the bank are also under investigation. However, the former President has rejected the allegations. 

Why are protests being held? 

After the bank crisis, people protested in many areas including Paraguay's capital Asuncion. The depositors are demanding return of their stuck money and action against those responsible. Pena is being held under house arrest at his home and prosecutors want to interrogate him. At the same time, many former officials of the bank have also been arrested. Now the new government of the country faces the challenge of restoring the trust of bank customers and dealing with the financial crisis.