Paraguay prosecutors order arrest of ousted president Santiago Peña

Paraguayan prosecutors ordered the arrest of ousted president Santiago Peña on Friday (6), hours after the Senate voted to remove him from office over the collapse of Ueno Bank. The collapse froze access to savings for nearly 3 million customers, and the arrest order was issued in Asunción. The case has become the deepest political crisis in Paraguay in more than a decade.

The order also covers Carlos Dagoberto Carvallo Spalding, former president of the Central Bank of Paraguay. Sources consulted do not confirm that either man has been found or detained.

No arrest confirmed as Peña’s whereabouts remain unknown

No source consulted confirms that Peña has been found or detained, and no information has been published about where he is at this time. On 5 November 2026, the government did not know where he was. Rumors that he had fled to Argentina circulated, but Buenos Aires denied them.

The order was forwarded to the command of the National Police, which must carry it out. Sources have not confirmed that police officers went to the former president’s home. The National Police is the only force named in the case.

Breach of trust charges sit at the center of the Ueno case

The order comes from a criminal investigation into suspected breach of trust and other possible offenses. One report describes the suspicion as disloyal administration of funds, while others refer to breach of trust. Prosecutors from the economic crimes and anti-corruption unit and from the computer crimes unit signed the order.

One report names four prosecutors: Elena Fiore, Christian Benítez, Silvia González Véster and Ruth Karina Benítez. Another report does not give the number of prosecutors involved. According to the Associated Press, the order was issued by prosecutors rather than a judge, and according to the same report, it is not a conviction for the facts under investigation.

Opposition lawmakers accused Peña of conflict of interest, manipulation of regulatory oversight, diversion of pension funds and an institutional cover-up involving the Central Bank. Those accusations have not yet led to formal measures, according to the material reviewed. Prosecutors have charged 27 people, including Ueno’s controlling shareholder Miguel Vázquez, with crimes such as breach of trust and attempted fraud, according to the Associated Press.

Senate votes to remove Peña while his resignation awaits approval

Peña submitted his resignation on Thursday, but Congress had not accepted it when the Senate moved ahead with the impeachment. He did not attend the Senate session and was represented by his lawyers, Ricardo Preda and Adolfo Ferreiro. Senators rejected a request from the defense for a 72-hour extension.

Reports differ on the vote count. Some describe a unanimous vote of the 44 senators present, while others report 44 votes in favor with one senator absent. In the Chamber of Deputies, which had voted 78 to 0 to open the process, deputy Rocío Vallejo blamed the president for the crisis.

Vice President Pedro Alliana is expected to take over the presidency. According to the Associated Press, he had not been sworn in early on Friday and would serve through August 2028. Protesters in Asunción demanded the return of funds frozen by Ueno Bank and the president’s removal.

Where the arrest order applies and which bodies must act

• Place of the order: Asunción, Paraguay
• Person named: Santiago Peña Palacios, former president of Paraguay
• Also named: Carlos Dagoberto Carvallo Spalding, former president of the Central Bank of Paraguay
• Issuing body: Public Prosecutor’s Office of Paraguay
• Where Peña must stay: his home, until he is brought before prosecutors
• Unit that will question him: Specialized Unit for Economic Crimes and Anti-Corruption
• Body in charge of enforcement: National Police of Paraguay

Central Bank liquidation reached about 3 million customers

The Central Bank of Paraguay ordered the liquidation of Ueno Bank on Tuesday (3). One report says the liquidation affected 3 million customers, close to half of the country’s population. According to the Associated Press, some depositors began recovering money on Thursday, starting with balances of up to 10 million guaraníes, about US$ 1,600.

The central bank says deposits are insured up to about US$ 37,000, a limit that covers almost all of the bank’s clients. The bank’s splashy logo had appeared at the national soccer stadium and on the cards of street vendors, according to the Associated Press.

Peña’s stake in Ueno Holding and the 2023 declaration

In 2023, Peña declared that he owned Ueno Holding shares valued at 6.144 billion guaraníes. He sold the stake in 2025, according to one report cited in the case. He also reported a certificate of deposit of 2.4 billion guaraníes at Ueno Bank. Peña has denied wrongdoing and said nothing illegal took place while he held the shares.

According to the same report, a brother of Peña appears as a partner in U Holding SARL, a company that would be the vehicle through which the group controlled Ueno Bank. Lawmakers also pointed to Peña’s appointment of a former Ueno executive to run the Central Bank, the institution that regulated the lender.

• 22 October 2022: original complaint against Peña is filed
• April 2025: Peña sells his stakes in Ueno Holding
• 3 November 2026: Central Bank orders the liquidation of Ueno Bank
• 5 November 2026: Chamber of Deputies approves opening the impeachment process and receives new charges
• 6 November 2026: Senate removes Peña and prosecutors issue the arrest order

Open questions about Peña, Carvallo and Alliana

It is not known whether Peña has been located and detained, or where he is now. No date or time has been set for his questioning. It is also unknown whether Carvallo has been found, or whether police carried out the order at the former president’s residence.

Prosecutors have not said whether they will file formal charges beyond the arrest order. The Associated Press reports that prosecutors have opened criminal investigations that include Alliana, while protesters asked that he also be investigated. Accusations about the Central Bank and public funds, including money from the social security institute IPS, Itaipu, Yacyretá and the Ministry of Economy, have not yet led to formal measures.