Paraguay Prosecutors Raid Presidential Palace in Ueno Bank Collapse Probe
Prosecutors searched Paraguay's presidential residence in Asunción amid a probe into the Ueno Bank collapse, which led to former President Santiago Peña's ou...
POLICY WIRE — Asunción, Paraguay — Paraguayan investigators executed a search order at the official presidential residence on Thursday. The move marks the latest escalation in a criminal probe targeting former President Santiago Peña, who faces charges linked to the recent financial turmoil in the country.
Public prosecutors confirmed the operation, which arrived as part of a broader investigation into the implosion of Ueno Bank. The digital lender’s failure has locked millions of Paraguayans out of their personal savings, sparking widespread public anger and political instability.
The bank’s collapse directly precipitated the ouster and subsequent arrest of Peña earlier this month. Authorities are now moving aggressively to uncover the extent of the former administration’s involvement in the institution’s demise.
According to official statements, the search targeted Mburuvicha Róga, the presidential compound in Asunción. Prosecutors indicated that the action was taken to gather evidence necessary for ongoing legal proceedings against the former head of state.
The crisis has also triggered concerns about Paraguay’s financial standing, with international rating agencies like Fitch placing the country’s credit outlook on watch for a potential downgrade. The instability highlights the severe impact the banking failure has had on both the domestic economy and the nation’s political structure.
Despite the high-profile raid, specific details regarding the exact items seized or further immediate legal steps have not been fully detailed in the initial reports. The justice system continues to follow the trail of funds linked to the digital bank’s operations.
Reporting by Policy-Wire (PW)