Former president Santiago Peña is in pretrial detention as authorities search properties, investigate alleged destruction of evidence and seek international assistance to trace assets linked to the failed lender. More than 1.7 million depositors have received partial repayments, but billions remain unaccounted for.
The banking crisis has entered a new phase, with investigators expanding their search for assets and evidence linked to the collapse of Ueno Bank, the financial scandal that led to the impeachment and arrest of former president Santiago Peña.
On the 10th of November, prosecutors searched properties belonging to Peña and former central bank chief Carlos Carvallo, seized documents and electronic devices, and sought assistance from authorities in the United States, Luxembourg and Argentina to trace potentially diverted funds. The investigation has also widened following the arrest of a Ueno broking executive accused of destroying documents containing information about Peña’s financial transactions.
The crisis began after Paraguay’s central bank intervened in Ueno Bank on the 3rd of November over serious solvency concerns. The lender’s collapse froze deposits belonging to millions of customers, disrupting access to salaries, savings and everyday payments. The bank reportedly held approximately $2.8 billion in deposits, including substantial funds belonging to public institutions and pension-related entities.
On Monday, the 9th of November, prosecutors searched Peña’s residence in Asunción for nearly five hours, confiscating documents, mobile phones, surveillance recordings, tablets and computers. A Ueno Bank office and a residence belonging to Carvallo were also searched as investigators pursued evidence relating to the former president’s financial interests and the bank’s operations.
Authorities are also working to identify and secure assets outside Paraguay that could be repatriated to compensate affected depositors. Prosecutors confirmed contact with officials in Luxembourg and Argentina, while the United States Department of Justice has offered assistance.
The investigation took another turn with the arrest of Andrea Benítez, head of operations at Ueno Casa de Bolsa, the bank’s broking affiliate. Prosecutors allege that she was caught destroying documents containing information about Peña’s stock market transactions shortly before officers arrived at the premises. Torn papers recovered from a rubbish bin reportedly contained email addresses associated with senior figures in companies belonging to Grupo Vázquez, the conglomerate behind Ueno.
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