Asunción:The Paraguayan Senate has postponed the impeachment trial of President Santiago Peña to this Friday at 10 a.m. local time. The session, initially set to begin the previous night, was delayed due to a lack of quorum. President Peña has indicated that he will defend himself before the authorities with "arguments and evidence."
According to Agencia de Noticias da Guine, the impeachment proceedings against Peña are taking place amidst a banking crisis that prompted him to offer his resignation on Thursday. The crisis has fueled public outcry, with thousands of citizens demanding his departure over the freezing of bank deposits affecting nearly half of Paraguay's population.
Protesters gathered outside the Paraguayan Congress in Asunción, urging accountability from the president for the banking turmoil. Despite offering his resignation, Peña remains in office temporarily as Congress has paused the resignation process while the impeachment advances. Senator Derlis Maidana mentioned that the parliament aims to conclude the trial promptly to "calm the citizens."
Peña announced his resignation after losing support from his Colorado Party and former mentor, ex-President Horacio Cartes. Subsequently, lawmakers unanimously voted to initiate an impeachment trial against Peña while rejecting a similar move against Vice President Pedro Alliana, who would assume presidential duties.
In a video message, Peña apologized to the nation, expressing his concern for the stability of the Paraguayan people who entrusted their finances to the country's banking system. Later, a parliamentary session to address his resignation was canceled due to insufficient attendance, leading to the announcement of the impeachment process initiation.
The impeachment accusations include allegations of Peña's involvement in a scheme to exploit a bank for personal gain while he controlled state institutions. The crisis started when the Central Bank of Paraguay intervened in Ueno Bank due to severe capital shortfalls, freezing both customer and state funds.
Peña, who was the Minister of Finance before becoming President in 2023, held shares in a group controlling the bank until 2025. Following the intervention, he demanded the resignation of the Central Bank president and enacted legislation to expedite the return of funds to bank clients.
Critics accuse Peña of regulatory favoritism and conflicts of interest due to his past financial ties. Despite his significant electoral victory in 2023, Peña's presidency has faced scrutiny over his connections with the financial sector.
Having previously served in various financial and governmental roles, Peña aligned with conservative values and maintained close ties with right-wing South American governments and the United States. However, his proximity to the financial sector has been a focal point of opposition criticism.
The opposition claims that Ueno Bank's growth was inconsistent with industry standards, prompting accusations of financial misconduct. Even within his party, figures like Senator Oscar Salomón withdrew support, criticizing Peña for prioritizing financial over national interests.
Source Agencia de Noticias da Guine