Paraguayan Court Orders Arrest of Ex-President Santiago Peña in Ueno Bank Scandal

Paraguayan justice ordered the preventive arrest of former President Santiago Peña and the freezing of his assets on Saturday, following an investigation into irregularities at Ueno Bank. Prosecutors are investigating losses of $809.5 million involving deposits from public institutions. Peña and former Central Bank President Carlos Carvallo face accusations of using public office to favor the bank's controlling group with state and pension funds. Peña is also questioned for holding shares and financial ties with the bank during his presidency, while Carvallo is accused of oversight omissions and falsifying documents. The bank's collapse blocked accounts of about 3 million clients, sparking protests in Asunción. Peña resigned Thursday and was formally removed by the Senate Friday. Authorities have seized luxury assets from bank executives, and new President Pedro Alliana has promised to assist affected customers.