Asuncion (Paraguay) (AFP) – Paraguayan prosecutors on Friday confirmed the presence of assets linked to Ueno Bank abroad while seeking to widen the charges against ousted president Santiago Pena over its dramatic collapse. The November 3 seizure of the digital bank amid major insolvency concerns locked tens of thousands of people out of their accounts, plunging the usually stable nation into chaos. Just three days later, senators impeached Pena, who is currently in pre-trial detention and accused of using his position to illegally benefit the digital bank.
While the Central Bank says 1.8 million depositors have got their money back, much of the funds held in Ueno remains missing. “Several countries have already reported the presence of assets,” prosecutor Francisco Cabrera told a press conference Friday, without specifying which ones. “The necessary steps are underway to request that they be frozen,” he added. Prosecutors earlier said they had asked the United States, Luxembourg and Argentina for help to find the missing money.
– ‘Subordinating’ the system –
On Friday, they also sought to charge Pena with “criminal conspiracy,” accusing him of steering a group of five Central Bank officials to protect Ueno. He “is believed to have acted as the head of the structure,” the court document seen by AFP read. The group had “the permanent purpose of subordinating the financial system and the oversight bodies to the private interests of the conglomerate Grupo Vazquez / Ueno Bank,” it said. Pena owned shares in the holding company until he sold them last year. He allegedly held “regular clandestine meetings” with group president Federico Vazquez, the document added.
The 47-year-old is accused of using his influence as president to steer millions in government deposits to Ueno and hiding or downplaying its financial woes despite warnings about questionable loans and solvency issues. The ex-leader, who denies all charges, faces up to 15 years in prison if found guilty. The latest indictment also concerns former Central Bank chief Carlos Carvallo, Central Bank official Holger Insfran and three former board members: Liana Caballero, Miguel Angel Mora and Marco Aurelio Gonzalez.
Ueno began as a small fintech company with a digital-first model that attracted many low-income customers. Within three years, it became a major player handling state pensions and the accounts of several government entities. The number of individuals affected by its demise surpasses the number of direct clients of the bank, which held over $800 million in public funds. Former vice president Pedro Alliana took the reins from Pena and will govern until 2028.
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