Paraguayan President Santiago Peña was unanimously removed from office by the Senate and placed under house arrest on Friday following a severe banking crisis. The impeachment proceedings stripped Peña of his political immunity after he had already offered his resignation.
The downfall stems from the collapse of Ueno Bank, a digital lender with close ties to the government. The failure of the bank has left nearly half of the country's population, approximately three million people, unable to access their savings, while public healthcare and pension funds remain frozen.
Prosecutors have charged the former president with breach of trust and administration for personal gain, and have requested he be jailed pending trial. Investigators are looking into allegations that Peña used his political influence to favor the bank, which had expanded exponentially under his government. Former Central Bank chief Carlos Carvallo was also ordered arrested as part of the criminal investigation.
Vice President Pedro Alliana has been sworn in as president to serve out the remainder of the term. While Alliana has pledged to compensate those affected by the banking collapse, he is also currently under investigation by prosecutors. Peña continues to deny any wrongdoing.