Paraguay’s political landscape is in turmoil as Congress has outright rejected President Santiago Peña’s resignation to press forward with impeachment proceedings tied to a spiraling banking crisis. The conservative leader, facing corruption allegations linked to the collapse of digital bank Ueno, is now set to appear before lawmakers Friday to present his defense.
The Banking Collapse That Sparked a Crisis
The controversy stems from last week’s seizure of Ueno Bank by Paraguay’s Central Bank, which reportedly uncovered solvency violations in the institution’s operations. The sudden collapse left millions of account holders frozen out of their funds, setting off panic and accusations of mismanagement at the highest levels.
Political opposition leaders, including Senator Líder Amarilla, allege Peña was complicit in Ueno’s downfall—an accusation the president vehemently denies. Instead of granting Peña a political exit, lawmakers voted overwhelmingly to reject his resignation Thursday, arguing that allowing him to step down would enable him to claim parliamentary immunity as a lifetime senator under the country’s constitution.
The High-Stakes Constitutional Showdown
Article 189 of Paraguay’s constitution grants former presidents a lifelong Senate seat—complete with speaking privileges—unless they are impeached and convicted. By refusing Peña’s resignation, Congress ensured he remains vulnerable to removal from office, stripping him of those post-presidency protections if found guilty. A two-thirds Senate vote is required to convict.
Facing intensifying pressure, Peña requested an additional 72 hours to prepare his defense, citing procedural unfairness after receiving a hefty, 300-page impeachment dossier late Thursday night with less than a 12-hour response window. ‘I will lay out my truth before the entire citizenry, even though it may be uncomfortable for many political actors,’ Peña vowed in a letter shared on social media.
A Swift Rejection and a Tense Wait
Within hours, Paraguay’s Senate shut down his request in a lopsided 39-3 vote, demanding he appear by midday Friday to face questioning. The move signals an aggressive approach by opposition and even some ruling-party lawmakers, who appear determined to settle the impeachment swiftly.
With the country watching, the unfolding trial could shape Paraguay’s political trajectory—either clearing Peña’s name or ending his presidency abruptly over accusations tied to one of the nation’s worst financial disasters in recent memory.
Source: www.breitbart.com — https://www.breitbart.com/latin-america/2026/11/06/paraguay-congress-rejects-president-penas-resignation-so-it-can-impeach-him/