Police raid home of ex-president of Paraguay

Officials carrying out a search of former president Santiago Pena's residence in the Ciervo Cua area of San Bernardino, Paraguay, on November 8, 2026. [AFP]

Police in Paraguay raided the home of ex-president Santiago Pena as part of a probe into a banking crisis that triggered his dismissal from office and criminal charges against him.

Authorities last week intervened to seize Ueno Bank, a popular online lender that held accounts for nearly half of Paraguay's 6.5 million people, plus more than $800 million in government funds.

Its collapse rocked this small, normally stable country, leading to street protests. Pena is now being held in custody at a military facility.

Pena, who came to power in 2023, owned shares in the bank's holding company, Ueno Holding, until he sold them last year.

He is accused of using his influence as president to steer millions in government deposits to Ueno Bank and of hiding or downplaying its financial woes even though he was warned about questionable loans and solvency issues.

Prosecutors announced in a statement that Pena's home was raided as part of the probe into the bank collapse.

Paraguayan impeached President Santiago Pena and Judge Humberto Otazu at the court in Asuncion on November 7, 2026. [AFP]

They say Ueno Bank received deposits from government entities even as it granted questionable loans to companies linked to Ueno executives.

Pena's mansion outside Asuncion is part of the probe. The indictment says that in 2024 he received two loans from Ueno Bank totaling around $500,000 so he could build the house.

His monthly mortgage payment is $38,000 -- six times his monthly salary as president, the charging sheet says.

The Senate voted Friday to dismiss Pena, and Vice President Pedro Alliana took his place.

Alliana said Sunday the government has reimbursed 1.2 million Ueno Bank customers whose money was frozen in the collapse.

The disbursal totals around $158 million so far, and it will continue this week, he said.