Paraguay’s ex-president Pena faces new charge over Ueno bank collapse

Paraguayan prosecutors have charged former president Santiago Pena with criminal association over his alleged role in the collapse of the digital bank Ueno , a week after Congress removed him from office. The prosecutor’s office announced the new charge on Friday, adding to the breach of trust and self-dealing charges already facing Pena, who is being held in pretrial detention at a military facility. The 47-year-old former leader is accused of using his position to direct millions in government funds to Ueno and concealing or downplaying its financial troubles, despite warnings of risky lending practices, while having financial ties to the bank.

On Thursday, investigators raided his official residence in the capital, Asuncion. The prosecutor’s office said agents from the economic crimes unit were extracting data and gathering relevant information for the investigation. Last week, Pena tried to step down as president, but Congress rejected his resignation, instead removing him from office through impeachment.

Pena was arrested shortly after his removal.