Paraguay's Santiago Peña removed from office in unanimous Senate vote over Ueno Bank scandal
Synopsis
In a unanimous 44-0 vote, Paraguay's Senate removed President Santiago Peña over the Ueno Bank collapse — a crisis that locked out 3 million customers and exposed alleged conflicts of interest, regulatory manipulation, and pension fund misuse. Prosecutors have now ordered his detention, stripping him of the constitutional immunity his office once guaranteed.
Key Takeaways
Paraguay's Senate voted unanimously — all 44 senators present in favour — to remove President Santiago Peña on 7 November 2026 .
Prosecutors ordered Peña's detention on charges of alleged breach of trust and other offences linked to the Ueno Bank collapse.
The banking crisis initially left around 3 million customers unable to access their accounts.
Peña faced accusations of conflicts of interest , regulatory manipulation, and misuse of pension funds.
Under Paraguay's Constitution, Peña's removal deprives him of a lifetime Senate seat and parliamentary immunity he would otherwise have held.
An earlier Senate vote of 24-20 rejected Peña's resignation, forcing the full impeachment trial to proceed.
Paraguay's Senate on 7 November 2026 voted unanimously to remove President Santiago Peña from office following an impeachment trial tied to alleged misconduct linked to the collapse of Ueno Bank. All 44 senators present cast votes in favour, delivering a decisive end to Peña's presidency amid one of the country's most significant political and financial crises in recent memory.
Prosecutors Order Detention
Following the Senate's verdict, prosecutors ordered the detention of the ousted president on charges of alleged breach of trust and other offences connected to the Ueno Bank collapse, according to local media reports. The detention order was issued by a team of four prosecutors investigating the banking scandal and forwarded to the national police for enforcement, as reported by local newspaper ABC Color.
The Ueno Bank Collapse and Key Allegations
The crisis at the centre of Peña's downfall stems from the authorities' intervention in Ueno Bank, which initially left around 3 million customers unable to access their accounts. Peña faced accusations of conflicts of interest involving the private bank, regulatory manipulation, and misuse of pension funds, according to reports. The scale of the banking disruption triggered widespread public anger and set the impeachment process in motion.
How the Impeachment Unfolded
Peña had submitted his resignation on Thursday amid the mounting crisis, apparently in an attempt to avoid impeachment proceedings. The Senate, however, voted 24-20 against accepting his resignation. A joint session of Congress subsequently failed to complete the process as a lawmakers' walkout left the Chamber of Deputies without a quorum.
The Chamber of Deputies had separately approved impeachment charges against Peña, clearing the path for the Senate trial. Peña had sought additional time to prepare his defence, arguing he received the impeachment charges only late Thursday night. The Senate ruled that Peña had failed to appear to present his defence and proceeded to review evidence; his defence lawyers arrived at Congress only afterwards.
Constitutional Consequences for Peña
Under Paraguay's Constitution, democratically elected former presidents are entitled to lifetime seats in the Senate and parliamentary immunity — unless convicted through impeachment. Peña's removal therefore strips him of both these privileges. With prosecutors now seeking his detention, he faces the prospect of criminal proceedings without the protection that his former office would otherwise have afforded him.
What Happens Next
Paraguay now faces a period of political transition as the country awaits the installation of a successor. The dual pressure of a banking crisis affecting millions of depositors and a leadership vacuum presents significant governance challenges. How swiftly institutions stabilise Ueno Bank and restore depositor confidence will be a key test for the incoming administration.
Point of View
However, is that Peña's resignation gambit — rejected 24-20 — came close to working, exposing the fragility of the constitutional guardrails. The Ueno Bank collapse is the real story beneath the politics: 3 million depositors locked out of their accounts is not a technocratic footnote but a mass economic grievance that made impeachment politically unavoidable. The stripping of lifetime Senate immunity ensures Peña cannot use a parliamentary safe harbour to escape prosecution — but whether Paraguay's courts can deliver a credible trial will now define the country's institutional credibility far more than the Senate vote itself.
NationPress
7 Nov 2026
Frequently Asked Questions
Why was Paraguay's President Santiago Peña impeached?
Santiago Peña was impeached over alleged misconduct linked to the collapse of Ueno Bank, including accusations of conflicts of interest with the private bank, regulatory manipulation, and misuse of pension funds. The banking crisis left around 3 million customers unable to access their accounts, triggering a political crisis that led to the impeachment.
What was the result of the Senate impeachment vote?
All 44 senators present voted in favour of removing Peña, making it a unanimous decision. This followed an earlier Senate vote of 24-20 that rejected his resignation, forcing the full impeachment trial to proceed.
What legal consequences does Peña now face?
Prosecutors have ordered Peña's detention on charges of alleged breach of trust and other offences linked to the Ueno Bank collapse. The order was issued by a team of four prosecutors and sent to the national police for enforcement.
What constitutional privileges did Peña lose by being impeached?
Under Paraguay's Constitution, democratically elected former presidents are entitled to lifetime seats in the Senate and parliamentary immunity unless convicted through impeachment. Peña's removal strips him of both, leaving him without protection against criminal prosecution.
What happens to Paraguay now after Peña's removal?
Paraguay enters a period of political transition with a successor to be installed. The immediate priorities include stabilising Ueno Bank and restoring access for the roughly 3 million depositors affected, alongside managing the political fallout from the country's most significant leadership crisis in recent years.
