Paraguay's President Santiago Peña has been impeached and placed under house arrest following the collapse of Ueno Bank, a financial crisis that has left an estimated three million depositors unable to access their savings and pensions, BBC reports.
The impeachment was approved on Friday, with 44 of the 45 senators voting in favour of removing Peña from office. One senator was absent. Lawmakers, including members of Peña's own party, unanimously backed the motion.
Peña had offered to resign on Thursday. However, instead of accepting his resignation, lawmakers proceeded with impeachment proceedings and charged him with misconduct, stripping him of the immunity normally enjoyed by former presidents.
The charges include alleged conflicts of interest, manipulation of regulatory oversight, diversion of pension funds and involvement in an institutional cover-up linked to the central bank.
Peña, who held shares in the company that owned Ueno Bank until last year, has denied any wrongdoing.
Prosecutor Silvia Margarita Gonzalez Vester said Peña is scheduled to be questioned on Saturday over allegations of breach of trust, influence peddling and misappropriation of funds.
Following his removal, Vice-President Pedro Alliana was sworn in as interim president. He will serve until 2028 and has pledged to compensate those affected by the financial collapse.
"Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," Alliana said.
The collapse of the digital bank, which was subsequently seized by Paraguay's central bank, has triggered widespread public anger. An estimated three million depositors remain unable to access their savings and pensions, affecting more than half of the country's population.
Long queues formed outside Ueno Bank branches in the capital, Asunción, on Tuesday and Wednesday as customers attempted to withdraw their money.
Protests spread across the country, with thousands taking to the streets on Thursday demanding access to their savings. Earlier demonstrations also witnessed clashes between protesters and police, who used tear gas and water cannons to disperse crowds.
In a video statement posted on X announcing his resignation, Peña said he had never intended to betray the public's trust, adding that his priority was "the peace of mind of Paraguayans who entrusted their savings to our financial system".
Senate President Basilio Núñez later said Peña had been found guilty of dereliction of duty.
Senator Rafael Filizzola described the crisis as "the biggest corruption scandal in our democratic history", saying it had dealt a tremendous blow to the state, private citizens and the country's international credibility.
Analysts expect Peña to face prosecution over the bank's collapse.
However, his defence lawyer, Ricardo Preda, rejected the allegations, describing them as a "reckless accusation" that was "irresponsible and opportunistic".