ASUNCION, Nov 7 (Reuters) – Paraguayan prosecutors on Saturday charged former President Santiago Peña with breach of trust and administration for personal gain and asked a court to jail him pending trial, a day after his impeachment over the collapse of digital lender ueno.
Prosecutors also charged former central bank chief Carlos Carvallo with breach of trust, producing false public documents and administration for personal gain, and sought his pretrial detention. Prosecutors said Peña should serve pretrial detention at a location determined by the court, if the judge orders it.
Peña’s attorney did not immediately respond to a request for comment, nor did Carvallo.
Prosecutors allege that Peña used his position as president to influence decisions by government agencies and state-owned entities to keep large amounts of public money deposited at ueno, despite maintaining financial ties to the lender. They say that relationship created a conflict of interest as Peña encouraged, facilitated or influenced decisions benefiting the bank.
Peña, who was a shareholder in ueno’s holding company until March 2025, has denied wrongdoing and said the bank’s problems were a regulatory matter.
Peña had arrived at the Attorney General’s Office earlier on Saturday to appear before prosecutors following his dramatic removal from power on Friday. His ouster brought Vice President Pedro Alliana to power, with the longtime ruling Colorado Party politician sworn in on Friday to complete Peña’s term through August 2028.
The two charges against Peña could carry a sentence of up to 10 years in prison each, the prosecutor said.
Carvallo resigned as central bank chief earlier this week as the crisis surrounding ueno escalated. He had previously headed the digital lender until 2023.
The collapse has left millions of customers struggling to access their accounts and prompted protests in Asuncion. The scandal has also swept up senior officials and former ueno executives, while regulators have sought to reassure markets and contain risks to the wider financial system.
The central bank on Saturday said the equivalent of $160 million had been paid out to nearly 1.2 million savers, under the state deposit guarantee scheme.
(Reporting by Daniela Desantis in Asuncion; Writing by Cassandra Garrison in Mexico City; Editing by Lucinda Elliott and Matthew Lewis)
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