Police Raid Ex-President Santiago Peña's Home Amid Banking Crisis

On November 8, 2026, police in Paraguay executed a raid on the residence of former President Santiago Peña in the Ciervo Cua area of San Bernardino. This operation is part of a broader investigation into a banking crisis that has led to Peña's dismissal from office and subsequent criminal charges against him. The raid comes in the wake of Ueno Bank's collapse, a financial institution that served nearly half of Paraguay's population and held over $800 million in government deposits.

The Attorney General’s Office of Paraguay confirmed the raid, stating that it was necessary to gather evidence related to allegations that Peña had steered government funds to Ueno Bank while concealing its financial troubles. The investigation has raised serious concerns about the former president's role in the bank's mismanagement and the broader implications for the Paraguayan economy.

Ueno Bank, once a popular online lender, was known for its accessibility and wide reach among the citizens of Paraguay. However, the bank's sudden collapse has sent shockwaves through the country, leading to street protests and public outcry. The bank's failure has left many citizens without access to their savings and has raised questions about the safety of financial institutions in Paraguay.

According to DotMR analysis, Ueno Bank held accounts for approximately 3.25 million people, representing a significant portion of Paraguay's 6.5 million population. The bank's insolvency not only affected individual depositors but also had a ripple effect on the government, which had entrusted a substantial amount of public funds to the institution. The situation has prompted calls for greater regulatory oversight of the banking sector.

Santiago Peña, who served as the 52nd president of Paraguay from 2023 until his arrest in 2026, is facing serious allegations of misconduct. Reports indicate that he may have knowingly directed government deposits to Ueno Bank despite receiving warnings about the bank's precarious financial situation. This has led to accusations of negligence and potential corruption.

Peña's political career has been marked by his previous roles in the Central Bank of Paraguay and Banco Amambay, where he was involved in economic policy-making. His expertise in economics, however, raises further questions about how he could have overlooked the warning signs regarding Ueno Bank's solvency.

As the investigation unfolds, Peña is currently being held in custody at a military facility, where he awaits further legal proceedings. The Attorney General’s Office has indicated that they are pursuing all avenues to ensure accountability for those involved in the bank's collapse.

The collapse of Ueno Bank and the subsequent arrest of Santiago Peña have ignited widespread protests across Paraguay. Citizens are expressing their anger and frustration over the government's handling of the banking crisis and the perceived lack of accountability among political leaders. Demonstrators have taken to the streets, demanding justice for those affected by the bank's failure and calling for reforms in the financial sector.

The protests have been largely peaceful, but tensions remain high as citizens seek answers and accountability from their leaders. Many are calling for a thorough investigation into the circumstances surrounding Ueno Bank's collapse and the actions of former officials, including Peña.

As Paraguay grapples with the fallout from the banking crisis, the future of the country's financial system hangs in the balance. The government is under pressure to implement reforms that will restore public confidence in the banking sector and prevent similar crises in the future.

The investigation into Santiago Peña and Ueno Bank is expected to take several months, with legal proceedings likely to unfold in the coming weeks. The outcome of this case could have significant implications for the political landscape in Paraguay, as well as for the stability of its financial institutions.

In conclusion, the investigation into Santiago Peña and the collapse of Ueno Bank marks a critical moment in Paraguay's history. As the country seeks to navigate the challenges ahead, the actions taken by its leaders will be closely scrutinized by both citizens and international observers alike.