Paraguay president impeached and under house arrest following bank collapse scandal

Paraguay’s senate has voted to impeach President Santiago Peña, who is facing a criminal investigation and is under house arrest following the collapse of a major bank he had business links to.

The country’s Senate voted to remove him from office on Friday with 44 of the 45 members voting in favor. Vice President Pedro Alliana was sworn in as president soon after the impeachment vote.

Peña announced his resignation from office on Thursday after Ueno Bank was shut down overnight due to a solvency crisis, leaving millions of customers unable to access their money and triggering a scandal.

Paraguay’s Attorney General has opened three criminal cases against Peña and other former officials related to the bank crisis. The impeachment vote strips Peña of his parliamentary immunity.

Peña will remain under house arrest until a judge decides where he should stay while the criminal process against him takes place, according to prosecutor Christian Benítez.

The prosecutor’s office said it ordered Peña’s arrest in relation to the Ueno Bank crisis. CNN has reached out to Peña’s lawyers for comment.

The country’s lower chamber of Congress had accused him of “serious and systematic dereliction of duty” in connection with his dealings with the bank.

Although Peña himself was not present at the impeachment vote, his legal team represented him before Congress. Attorneys Adolfo Ferreiro and Ricardo Preda appeared in the Senate after lawmakers rejected a request from Peña for a 72-hour extension to prepare his defense.