Judge Orders Paraguay’s Ex-President Peña Held Before Trial in Ueno Bank Case

A Paraguayan judge on Saturday ordered former President Santiago Peña held in pretrial detention at a military facility while prosecutors investigate his ties to digital lender ueno.

Judge Humberto Otazú ordered Peña held at the facility after prosecutors charged him with breach of trust and administration for personal gain, saying detention was necessary to ensure he remained in the country while the case proceeded. Each charge could carry up to 10 years in prison, prosecutor Nancy Salomón said.

Peña’s attorney, Ricardo Preda, told journalists that Peña was pleading not guilty. “We will submit to the investigation and I am sure that when this investigation is over the result will be the dismissal,” Preda said.

Central bank chief also detained

Otazú also ordered former central bank chief Carlos Carvallo held in pretrial detention at a holding center after prosecutors charged him with breach of trust, producing false public documents and administration for personal gain. Carvallo resigned as central bank chief earlier this week. He had headed ueno until 2023.

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 his financial ties to the lender. Peña was a shareholder in ueno’s holding company until March 2025. He has denied wrongdoing and said the bank’s problems were a regulatory matter.

Peña was removed from office by the Senate on Friday, and Vice President Pedro Alliana was sworn in to complete Peña’s term through August 2028. The central bank said on Saturday that the equivalent of $160 million had been paid out to nearly 1.2 million savers under the state deposit guarantee, as protests continued in Asuncion.

Reporting based on coverage by Reuters.