Paraguay’s Peña loses top aides as impeachment trial resumes over failed bank

ASUNCIÓN, Paraguay (AP) — Top aides to Paraguayan President Santiago Peña person resigned arsenic the Senate resumed an impeachment proceedings Friday that could region him from office, deepening a governmental situation triggered by the illness of a slope tied to his government.

Senators rejected Peña’s petition for 72 much hours to respond to accusations stemming from the nonaccomplishment of Ueno Bank, a integer lender that counted astir fractional of Paraguay’s colonisation arsenic customers. Its illness this week froze the savings of millions of Paraguayans and upended a state agelong seen by investors arsenic 1 of South America’s astir stable.

Interior Minister Enrique Riera resigned precocious Thursday, followed Friday by Peña’s main of staff, Javier Giménez, and his ineligible adviser, Roberto Moreno, who discontinue conscionable arsenic the president prepared to support himself earlier the Senate.

Peña said helium had received the summons lone hours earlier the session, on with astir 300 pages of accusations and evidence, leaving him nary clip to prosecute a lawyer oregon reappraisal the case.

“That is not owed process,” helium wrote connected X.

Within a specified 3 days, the implosion of Ueno has plunged Paraguay into its deepest governmental situation successful much than a decade. Regulators seized the slope earlier dawn Tuesday. By Thursday afternoon, Peña had offered to resign arsenic his ain enactment turned connected him.

“It was ne'er my volition to betray the spot you placed successful me,” helium said successful a video code arsenic Paraguayans took to the streets of Asunción, the capital, and different cities nationwide, clashing with constabulary and demanding that Peña beryllium held accountable.

Former President Horacio Cartes, Peña’s mentor and the patriarch of the long-ruling blimpish Colorado Party, publically backed his ouster. The little location voted 78-0 to impeach Peña and nonstop the lawsuit to the Senate. It was a stunning reversal for the erstwhile International Monetary Fund economist, whose presidency had rested connected the backing of his party’s astir almighty figures.

Under Paraguay’s Constitution, a president who resigns — alternatively than being removed done impeachment — becomes a legislator for life, with parliamentary immunity that could shield him from prosecution. That has turned Peña’s exit into a governmental battle.

The president's remaining allies privation Congress to o.k. his resignation, portion opponents privation the Senate to convict and oust him. When his allies saw Thursday that they lacked the votes, they walked out, leaving excessively fewer lawmakers to proceed and Peña successful office.

Conviction requires 30 votes successful the 45-member Senate. Either way, Vice President Pedro Alliana, who survived his ain impeachment effort Thursday, would service retired the word done August 2028.

The impeachment charges halfway connected Peña’s adjacent ties to Ueno, which grew from a little-known lender into 1 of Paraguay’s largest banks successful conscionable a fewer years, taking successful much than $800 cardinal successful nationalist funds.

Lawmakers mention Peña’s involvement successful Ueno’s holding company, which helium sold lone past year, and his assignment of a erstwhile Ueno enforcement to tally the cardinal slope that regulated it. They besides impeach him of letting nationalist pension deposits astatine the slope transcend ineligible limits.

Prosecutors connected Thursday opened 3 transgression investigations into the bank’s collapse, including complaints against Peña, Vice President Alliana and existent and erstwhile officials astatine the cardinal slope and the authorities pension fund.

Former Ueno CEO Miguel Vázquez has been charged with crimes including breach of spot and attempted fraud, and a justice has ordered six slope directors held successful pretrial detention. Police and prosecutors raided institution offices successful Asunción and towed 9 luxury vehicles from Vázquez’s location aboriginal Friday.

Ueno Bank's astir 3 cardinal customers inactive cannot retreat cash, marque integer payments oregon usage their slope cards. The cardinal slope calls the illness an isolated lawsuit and insists the broader fiscal strategy is safe.