Paraguay Swears In Pedro Alliana as Ousted President Peña Faces House Arrest

The Senate unanimously removed Santiago Peña over his handling of the Ueno Bank crisis. His successor pledged full compensation for citizens affected by the financial turmoil

The political fallout from Paraguay’s banking crisis reached the presidency on Friday, with Pedro Alliana sworn in as the country’s new leader and his predecessor, Santiago Peña, placed under house arrest following his removal from office.

Alliana, 52, took the oath after the Senate unanimously found Peña guilty of “misconduct in the exercise of his duties” over the collapse of Ueno Bank. In his first address to the Senate as president, he promised that people affected by the financial turmoil would receive full compensation.

“All citizens who are going through a very difficult situation because of the financial chaos will be fully compensated. We will not leave them alone,” Alliana said.

Peña, meanwhile, will remain under house arrest, prosecutor Silvia Margarita González Vester told reporters. He is due to appear before prosecutors at 11 a.m. local time on Saturday to be questioned over alleged abuse of office, influence peddling and the use of his position for personal financial gain.

The Senate’s unanimous decision marks a dramatic turn in a crisis that has now brought down the country’s president. Peña was removed from office on the same day Alliana took over, while the investigation into his alleged conduct moves into its next phase.

(Photo: © AndKronos)