Paraguay's Ex-President Charged in Collapse of Major Bank
Paraguayan prosecutors charged former President Santiago Peña with breach of trust and administration for personal gain on Saturday, and a judge ordered him held in pretrial detention at a military facility, a day after his impeachment over the collapse of digital lender Ueno. Judge Humberto Otazú ruled detention was necessary to ensure Peña remained in the country while the case proceeds. Peña's attorney said he pleaded not guilty, and prosecutors allege he used political influence to steer public funds into Ueno while regulators overlooked risky insider lending. Former central bank chief Carlos Carvallo was also detained on related charges. The bank's seizure froze accounts of nearly three million customers, with $160 million paid out to savers so far. Peña's ouster brought Vice-President Pedro Alliana to power, while protests in Asunción have clashed with police, and a teachers' union plans an indefinite strike Monday.