Arab News | Paraguay opposition seeks president’s removal over banking crisis

ASUNCION: The Paraguayan opposition presented a motion to remove President Santiago Pena from office over the Central Bank’s seizure of a major lender linked to him, a lawmaker told AFP on Wednesday.

The decision to take over Ueno Bank Tuesday left millions of depositors, including pensioners, without access to their money.

Right-winger Pena owned shares in a group that controlled Ueno Bank but he sold them last year.

The request for his dismissal for alleged misconduct and conflict of interest received 35 signatures among opposition lawmakers in congress, dissident ruling party lawmaker Mauricio Espinola told AFP.

Congress will hold a session on the motion Thursday morning, he said.

After examining the charges, at least 53 out of 80 lawmakers must approve the removal of Pena and Vice President Pedro Alliana for the proposed punishment to move forward.

The request would then move to the Senate, where it would require 30 out of 45 votes of approval.

Pena’s ruling party holds a majority in both houses.

Ueno Bank says it has over three million customers — nearly half of Paraguay’s population — and manages millions of dollars in pensions and other state funds.

The Central Bank said it took over Ueno Bank due to a severe capital shortfall, in order to “protect depositors and preserve the stability of the financial system.”

Authorities have suspended its services while they organize the return of deposits.

Central Bank president Carlos Carvallo, who previously chaired Ueno Bank, resigned at the request of Pena on Tuesday.