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Reporter Victoria Bourne, Will Grant Mexico, Central America and Cuba correspondent
On the 6th, the Senate of Paraguay in South America voted to impeach and dismiss President Santiago Peña. The president was arrested and placed under house arrest. On the same night, Vice President Pedro Ariana was sworn in as interim president.
In Paraguay, a major digital bank, Uenobank, went bankrupt earlier this month, leading to a bank run. Mr. Peña announced his resignation on the 5th, but the National Assembly has proceeded with impeachment proceedings, and members of the ruling party also support the president's removal from office. The president was arrested minutes later.
After Congress refused to accept the president's resignation and impeached him, accusing him of fraud, Peña was stripped of his lifetime Senate seat and the immunity granted to former presidents.
Mr. Peña held shares in Uenobank's holding company until last year, but denies any wrongdoing in connection with the bank's failure.
On the 3rd, the Central Bank of Paraguay placed Uenobank, in which more than half of Paraguay's citizens have accounts, under control and announced the start of bankruptcy resolution. As a result, many citizens were unable to access their savings.
An estimated 3 million depositors remain unable to withdraw their savings or pensions, leading to large-scale protests, particularly in the capital Asunción.
In the impeachment charge that led to Peña's ouster, lawmakers alleged that he engaged in conflicts of interest, manipulated regulatory oversight, misappropriated pension funds and a systematic cover-up involving the central bank.
Prosecutor Silvia Margarita González Bester said Peña will be questioned on Wednesday on suspicion of breach of trust, influence, and embezzlement of funds.
The resolution to impeach President Peña was passed with the support of 44 out of 45 senators. One member was absent.
After the resolution, Senate President Basilio Nuñez said Peña had been found guilty of "neglect of duty."
Vice President Ariana then became interim president. His term of office will run until 2028.
"The people who are currently in a difficult situation due to the bank failure will receive full compensation," Ariana said.
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"We are facing the biggest corruption scandal in the history of our country's democracy. This is a huge blow to the state, to the public, and to the country's credibility and image," said Senator Rafael Filizzola.
There is growing belief that Mr. Peña will be held responsible for the bank's collapse and likely to be prosecuted.
Defense lawyer Ricardo Preda responded by calling the charges against the former president "irresponsible and opportunistic" and "reckless accusations."
Pena apologized to the nation in a speech on Friday, saying, ``I never intended to betray the trust you have placed in me.''
(English article Paraguay's President Santiago Peña impeached and arrested)
