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Paraguayan prosecutors accused former President Pena of using his power to influence public sector decisions and allow money to flow into Uno Bank, and he and the former central bank president face criminal prosecution and detention claims.
Paraguayan prosecutors today filed criminal charges against former President Penía, including breach of trust and profiteering, and asked the court to place him in preventive detention. Pena was implicated in the Uno Bank collapse scandal and Congress passed it yesterdayImpeachment He was later arrested by the police and placed under house arrest.
Reuters reported that prosecutors also filed criminal charges against former Central Bank of Paraguay president Carlos Carvalho, including breach of trust, making false official documents and profiteering, and requested that he be held in preventive detention.
Lawyers for Santiago Peña have not responded to Reuters requests for comment, and neither have Cavallo.
Prosecutors alleged that Pena used his presidential power to influence decisions of government agencies and state-owned enterprises, allowing large amounts of public money to be deposited into Uno Bank, although he still had financial ties with the bank. Prosecutors said the relationship constitutes a conflict of interest when Pena encouraged, facilitated or influenced decisions that benefited the bank.
Pena was a shareholder of Uno Bank Holdings until March last year. He denied any wrongdoing and said the issues facing the bank were regulatory matters.
Pena arrived at the Attorney General’s Office today for questioning by prosecutors. Vice President Pedro Eliana was immediately sworn in after Congress voted to impeach him yesterday. He will complete Pena’s original term through August 2028.
Prosecutors said both cases Penia faces carry a maximum sentence of 10 years in prison.
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Prosecutors accused Pena of breach of trust and profiteering, and believed he used his presidential power to interfere in government and state-owned enterprise decision-making and deposited large amounts of public money in Uno Bank, so they requested preventive detention.
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Prosecutors said Panya also owned shares in Uno Bank Holdings before March last year, but he was accused of influencing decisions that were beneficial to the bank, creating a conflict of interest between public power and private financial ties.
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In addition to Pena, former central bank chief Cavallo was also charged with breach of trust, making false official documents and profiteering. Peña is arrested and placed under house arrest, while Vice President Ariana is sworn in as President.
