Politics

Paraguay Swears in Vice President Pedro Alliana After Santiago Peña’s Impeachment

By Al Jazeera Staff

Paraguay’s vice president, Pedro Alliana, 52, was sworn in as the country’s 53rd president on Friday, following the impeachment of former President Santiago Peña. Peña’s term ended earlier that day when 44 of Paraguay’s 45 senators voted to remove him from office; one senator abstained. In a social‑media post, Peña said, “I take my leave with gratitude, while fully acknowledging the anguish of those who are currently awaiting answers.”

The impeachment came amid the collapse of Ueno Bank, a major lender that had fallen below solvency requirements. The central bank seized the bank and transferred its assets to other institutions, leaving millions of clients without access to accounts and pension payments. Ueno had grown to be Paraguay’s fifth‑largest bank, with $800 million in public deposits and a customer base of roughly three million people.

Pena, a member of the long‑ruling Colorado Party, had been identified as a shareholder of Ueno’s parent company in 2023, though he claimed to have sold his shares in early 2025. After the bank’s collapse, he offered to resign, citing the need to preserve democratic institutions, but Congress rejected his resignation and proceeded with impeachment. The Chamber of Deputies voted 78‑0 to impeach Peña, allowing the Senate to remove him the following day.

Following his removal, prosecutors placed Peña under house arrest on suspicion of breach of trust and other crimes. An arrest warrant was issued for former central bank head Carlos Carvallo, who resigned earlier that week. The scandal has prompted investigations into alleged fraud, misappropriation of funds, and influence peddling, with at least 27 people charged, including lead shareholder Miguel Vazquez.

Alliana, who had served as vice president since Peña’s inauguration in 2023, began his political career as governor of Neembucu and spent nearly a decade in the Chamber of Deputies, including three years as its president. He assumes leadership at a time when Paraguay faces one of its most severe political and economic scandals in recent history.