Preventive Detention Ordered for Former President Peña in Ueno Bank Case

A Paraguayan judge ordered preventive detention this Saturday for former President Santiago Peña, a decision marking a new chapter in the scandal shaking the country over Ueno Bank.

"This citizen must be placed under preventive detention to guarantee his submission to these proceedings," Humberto Otazú, economic crimes criminal guarantee judge, told reporters in Asunción.

Consequently, Peña will remain detained at the "Presidential Escort Regiment," as reported by Otazú following the conclusion of the measures imposition hearing, during which the former head of state refrained from testifying.

According to Peña's defense attorney, there is no flight risk or danger of obstructing the investigation, adding that the former president did not intervene in the operations of the private bank involved, as reported by ABC Color.

The judicial order comes after the Public Prosecutor's Office indicted him for alleged crimes of breach of trust and administration for personal benefit regarding his actions involving the bank.

The information was released by the Public Prosecutor's Office in a statement published on its Facebook account, which also demanded the freezing of the former president's funds and assets.

Additionally, the Itaipú hydroelectric power plant reported on Saturday that it had more than $163 million deposited in Ueno Bank and has already initiated legal action before the Prosecutor's Office to recover the funds.

What Charges Peña Faces

Prosecutors accuse Peña of having "intervened in decisions related to the placement and retention of public and pension funds in Ueno Bank, an entity with whose corporate group he allegedly maintained economic and business relationships."

Initial investigations reveal that by last September, various state agencies held more than $230 million in the intervened institution.

Investigators requested similar measures against Carlos Carvallo, former president of the Central Bank of Paraguay (BCP), who is accused of failing to fulfill his duty to supervise the bank.

According to Paraguayan newspaper ABC Color, both Peña and Carvallo reportedly refused to provide statements to prosecutors.

The former president's indictment was surrounded by tension and criticism.

On Friday night, a protest led Paraguayan authorities to transfer Peña from his residence to a military barracks, where he spent the night.

Hours earlier, the judiciary had placed him under house arrest following his impeachment by the Senate due to his involvement in the Ueno Bank scandal.

On Saturday, during his first appearance before the prosecution, dozens of citizens gathered outside the headquarters of the Prosecutor's Office demanding that all those involved in the financial crisis "fall."

Initially, Peña was scheduled to appear at the Specialized Unit on Economic Crimes and Anti-Corruption (UDEA).

However, on Saturday authorities announced that, for "security reasons," the proceedings would take place at the main headquarters of the Prosecutor's Office in Asunción, as was done.

"We ask citizens to remain calm regarding the investigation," stated Deputy Prosecutor Nancy Salomón, who confirmed that changing the location of the former president's appearance was done to "avoid unrest."

The former president's arrival at the Prosecutor's Office without handcuffs and escorted by military personnel did not go unnoticed by local media or public opinion.