Paraguay Senate removes Peña; judge orders him detained

As of 10:24 p.m. ET, Monday, Nov. 9, 2026

Paraguay's Senate removed President Santiago Peña from office Friday, Nov. 6, finding him guilty of "poor performance of his duties" in an impeachment trial over the collapse of Ueno Bank, and Congress swore in Vice President Pedro Alliana as president about an hour later, according to the Senate and Reuters.

A day later, a judge ordered Peña and former Central Bank president Carlos Carvallo held in pretrial detention and froze their assets while prosecutors investigate them in the bank case, ABC Color and Reuters reported. Both men are charged, not convicted, and Peña has denied wrongdoing.

Removal and succession

The Senate vote was unanimous among senators present, the chamber said. BBC Mundo put it at 44 votes in favor, with one senator absent. The Chamber of Deputies had voted 78-0 on Thursday to send the case to trial, AP reported. A joint session on Peña's Nov. 5 resignation offer lost its quorum, Última Hora reported, and lawmakers finished the trial instead.

The Senate rejected Peña's request for 72 more hours to prepare, and he did not appear. His lawyers, Adolfo Ferreiro and Ricardo Preda, argued the trial was void and that his resignation had stripped Congress of jurisdiction, according to the Senate's account. BBC Mundo noted the verdict is political, not a criminal conviction, and bars Peña from the lifetime Senate seat given to former presidents.

Alliana will serve out Peña's term through August 2028, Reuters and BBC Mundo reported. Congress then elected Sen. Antonio Barrios as vice president. In his first address, Alliana promised that depositors hurt by the bank's failure would be compensated, DW reported.

Charges, detention and asset orders

Prosecutors ordered Peña and Carvallo detained Friday evening under Case No. 92/2026, ABC Color reported. On Saturday they charged Peña with breach of trust, as an alleged instigator, and administration for personal gain. They charged Carvallo, who ran Ueno's predecessor finance company before heading the Central Bank, with those offenses plus producing false public documents. Both declined to testify, ABC Color said.

Judge Humberto Otazú ordered Peña held at a military facility, the Presidential Escort Regiment, Reuters and ABC Color reported. ABC Color said Carvallo was ordered held at a police facility for 15 days. The court also barred both from selling or encumbering property and froze funds in their bank accounts, ABC Color and Última Hora reported. Prosecutors put the preliminary loss to the state at more than $815 million, Última Hora said, citing the charging document.

Prosecutors allege Peña used his office to keep large sums of public and pension money at Ueno despite his financial ties to the bank. Preda told reporters he was sure the investigation would end in the case being dismissed, Reuters reported. The Central Bank has said Carvallo recused himself from Ueno decisions. Carvallo did not respond to Reuters. On Sunday, Nov. 8, prosecutors searched a Peña vacation home in San Bernardino, DW reported.

About 1.2 million savers had received roughly $160 million through the state deposit guarantee by Saturday, the Central Bank said, according to Reuters.