Paraguay’s former President Santiago Peña and ex-central bank chief Carlos Carvallo Spalding have been charged over the collapse of Ueno Bank, with prosecutors seeking their pretrial detention.
The charges include breach of trust and administration for personal gain, while Carvallo also faces accusations of producing false public documents. Prosecutors have requested that both men’s assets be frozen.
The case follows the seizure of Ueno Bank by regulators, leaving millions of customers unable to access their savings. Peña was removed from office by Paraguay’s Senate on Friday, with Vice President Pedro Alliana sworn in as his successor.
Investigators are examining alleged conflicts of interest surrounding Carvallo’s appointment as central bank chief and Peña’s former shareholding in Ueno’s parent company.
Both men have denied wrongdoing.