Paraguay police search ex-President Peña's home over Ueno Bank collapse

Police in Paraguay searched the home of former President Santiago Peña in connection with the collapse of Ueno Bank, a case that led to his removal from office, prosecutors said. The bank's failure froze deposits belonging to nearly three million people, about half the country's population. The search on Sunday relates to accusations of "abuse of trust" and "misappropriation of funds for personal purposes." Peña allegedly obtained two loans from Ueno Bank in May 2024, worth around 450,000 euros, to finance the construction of the residence that was searched. A judge ordered his pretrial detention on Saturday. Peña, 47, was impeached by Paraguay's Senate for "poor performance of duties." Prosecutors allege he directed significant public funds into Ueno Bank, which received over 710 million euros from state coffers during his term. Acting President Pedro Alliana has assumed power and said affected taxpayers will not face penalties.