Paraguay's Congress rejected President Santiago Pena's resignation Thursday and voted unanimously to impeach him following the collapse of digital lender Ueno Bank, which left millions of customers unable to access accounts.
Pena, president since 2023, sought to step down citing concerns for "stability of our country, social peace and the need to preserve our democratic institutions." The lower house voted 78-0 to impeach. The Senate opened proceedings and summoned him to appear Friday.
Lawmakers blocked acceptance of the resignation during a joint congressional session when members of Pena's Colorado Party walked out, denying it a quorum. Party leader Horacio Cartes, a former president, posted on social media that the party supported impeachment, writing "We will not side with the theft of public, private and pension funds."
The rejection heightens Pena's legal exposure. Under Paraguayan law, departing presidents ordinarily become lifetime senators with immunity from prosecution. That protection does not apply if the president is convicted in impeachment proceedings.
Ueno collapsed this week after Paraguay's central bank announced it had fallen below the legal solvency ratio. Once recalculated, the bank's capital fell below half the legal minimum. The bank claimed about 3 million customers in Paraguay's population of 6.5 million. It administered close to $850 million in public funds before its demise.
Pena formerly held a stake in Ueno's parent company, Grupo Vazquez, though he said he sold the shares in 2025. Lawmakers accused him of conflict of interest and questioned whether he participated in covering up the bank's insolvency. Al Jazeera's Latin America editor Lucia Newman said he faces accusations of "negligence at the very least and complicity in covering up the fact that the bank was insolvent."
The central bank's head, Carlos Carvallo, resigned. Paraguay's attorney general ordered three criminal investigations into the bank's collapse, examining oversight and placement of public funds. Pena said he would cooperate with investigators. If removed from office, Vice President Pedro Alliana would assume the presidency.