Former Paraguayan president Santiago Peña was placed in pretrial detention on Saturday, November 7, a day after the Senate removed him, on the orders of judge Humberto Otazú, according to EFE. Prosecutors charged him with alleged breach of trust, as instigator, and self-serving administration, as perpetrator, in the case over the collapse of Ueno Bank. Peña is held in the custody of the Presidential Escort Regiment because of the sensitive information he handled as head of state, according to the judge.
Carlos Carvallo Spalding, former president of the Central Bank of Paraguay (BCP), was charged in the same case. Prosecutors are investigating damage of more than US$809 million, according to Diario Crónica, although how much is an actual loss to the state remains to be determined. The charges are not a conviction: Peña's responsibility will be decided in court.
View the data as a table
| Damage under investigation | US$ 809 M |
| Ueno Bank customers | 2.94 million |
| Maximum penalty for each offense | 10 years |
| IPS retirees with frozen funds | 32,000 |
What Santiago Peña is accused of in the Ueno Bank case
Prosecutors Elena Fiore, Christian Benítez, Silvia González Véster and Ruth Benítez filed the charges (case No. 92/2026), according to ABC Color. Benítez said each offense carries up to 10 years in prison, according to EFE via Milenio. Peña and Carvallo declined to testify at the hearing.
| Defendant | Former post | Charges |
|---|---|---|
| Santiago Peña | President of Paraguay (2023-2026) | Breach of trust (instigator) and self-serving administration (perpetrator) |
| Carlos Carvallo Spalding | President of the Central Bank of Paraguay | Breach of trust, production of false public documents and self-serving administration |
Sources: EFE via Infobae and ABC Color. ABC reports that the case is before Specialized Economic Crimes Guarantee Court No. 2, headed by Rodrigo Estigarribia, while EFE attributes the detention order to judge Humberto Otazú; the sources do not explain the difference.
Prosecutors also requested a general ban on selling or encumbering both men's assets, the freezing of their bank accounts and financial assets and a search for real estate, vehicles and shares in their names. The judge was still reviewing the request to seize Peña's assets, according to EFE.
The operations prosecutors are investigating
According to the prosecution's case as reported by Diario Crónica, between 2023 and 2026 state institutions such as the Social Security Institute (IPS), Itaipú Binacional, Yacyretá, the ANDE power utility and pension funds deposited money at Ueno Bank. By September 2026, those deposits totaled PYG 3.6 trillion and US$233.4 million, according to the General Treasury.
| Operation under investigation | Date | Amount |
|---|---|---|
| Two Ueno Bank loans to Peña for a house in San Bernardino | May 2024 | PYG 3.548 billion |
| IPS purchase of seven-year Ueno Bank bonds | August 2024 | PYG 250 billion |
| Purchase of Credicentro preferred shares (later part of Ueno Holding) | 2019 | PYG 1.5 billion |
| Redemption of those shares | March 2025 | No data |
| Peña's financial assets in the group | At the time of the sale | PYG 8.894 billion (about US$1.4 million) |
Sources: Diario Crónica and EFE via Milenio. These are the prosecution's allegations. According to prosecutors, the IPS bond purchase was approved two days after a meeting between Peña and the then head of the institute, Jorge Brítez. Peña's August 2023 asset declaration reported a net worth of PYG 23.024 billion, up 1,603% from 2017.
In Carvallo's case, prosecutors argue his career may have created a conflict of interest: before joining the Central Bank in 2023 he chaired the Ueno finance company, the bank's origin, and later had to supervise the institution. He is also being investigated for alleged omissions in documents sent to the Senate, according to Diario Crónica.
How Santiago Peña ended up in pretrial detention
- May 2024Ueno loans to PeñaFor PYG 3.548 billion, according to prosecutors.
- Aug. 2024IPS buys Ueno bondsPYG 250 billion, two days after a meeting with Peña, according to prosecutors.
- Mar. 2025Peña redeems his shares
- Nov. 2-3, 2026Ueno Bank is taken over and closed
- Nov. 6, 2026The Senate removes Peña44 of 45 votes; Alliana takes office and Peña is detained.
- Nov. 7, 2026Charges and pretrial detentionBreach of trust and self-serving administration.
- Nov. 8, 2026Alliana forms his cabinetAriel Martínez at the Interior Ministry and Rolando de Barros as chief of staff.
The Central Bank took over Ueno Bank on November 2 and the bank closed the next day. The crisis escalated within four days: the Chamber of Deputies approved the impeachment 78 to 0 and the Senate removed Peña on November 6 for poor performance of duties, with 44 of 45 votes, as we explained in our article on the impeachment. For the origin of the crisis, see what happened to Ueno Bank.
Pedro Alliana's cabinet: first appointments
While Peña was being detained, Pedro Alliana, who took office to complete the term ending August 15, 2028, began forming his cabinet. Antonio Barrios, a senator elected in 2023, was sworn in as vice president.
| Name | Post | Before |
|---|---|---|
| Ariel Martínez | Interior Minister | Interior Minister in 2018, under Horacio Cartes |
| Rolando de Barros | Chief of Staff and Secretary General of the Presidency | Environment Minister (Mades) under Peña |
| Juan Carlos Baruja | Minister of Public Works and Communications | Minister of Urban Planning, Housing and Habitat; replaces Claudia Centurión |
| Walter Gutiérrez | Stays at Children and Adolescents | Announced on X |
| Rubén Ramírez, Óscar Lovera and Isaías Fretes | Expected to stay at Foreign Affairs, Economy and Health | Peña's ministers |
Source: Infobae and ABC Color. Alliana called meetings on medicine supplies and on customers affected by Ueno's closure, including 32,000 IPS retirees with frozen funds, according to Infobae. Foreign Minister Ramírez spoke with other governments to confirm the continuity of foreign policy.
What comes next in the Ueno Bank case
- Asset measures: the judge must rule on seizing and freezing Peña's and Carvallo's assets.
- Other defendants: eight former Ueno Bank executives are charged in the original case; the men are in pretrial detention and the women under house arrest, according to ABC Color.
- Depositors: the legal deadline for the deposit guarantee expires on November 17, extendable to December 2.
Frequently asked questions
Why is Santiago Peña in jail?
A judge ordered his pretrial detention on November 7, 2026, after he was charged with breach of trust and self-serving administration in the Ueno Bank case.
Where is he being held?
In the custody of the Presidential Escort Regiment, because of the sensitive information he handled as president, according to the judge.
How much money are prosecutors investigating?
Damage of more than US$809 million, according to the prosecution; the actual loss has yet to be determined.
Who governs Paraguay now?
Pedro Alliana, who took office on November 6 to complete the term ending August 15, 2028.
What sentence could Peña face?
Each offense charged carries up to 10 years in prison, according to prosecutor Christian Benítez.
