A Paraguayan economic-crimes judge has ordered former president Santiago Peña held in preventive detention as investigators examine his past links to the Ueno Bank group and alleged improper handling of public resources. Peña was taken from the Asunción courthouse to the Presidential Escort Regiment, a military unit that will serve as his place of custody.¹

The prosecution’s case centers on suspected breach of trust and self-dealing. Investigators allege that Peña used the presidency to influence public agencies and state companies that kept deposits at the bank, despite his previous connection to its controlling group. Peña had been a shareholder in Ueno Holding until March 2025, according to the reporting.¹

Both accounts describe Judge Humberto Otazú’s reasoning in similar terms: Peña’s detention was intended to ensure he remains in Paraguay and to limit the risk that he could obstruct the inquiry. The judge also considered the information Peña had accessed as head of state, including material related to the financial system and organized crime.²

The defense offers the sharpest contrast. Peña declined to testify at the hearing, while lawyer Ricardo Preda denied the allegations and argued that the legal conditions for detention were not met. Preda said there was no flight or obstruction risk because Peña is no longer president, and said he would review the written ruling before deciding whether to appeal.²

Preda has said Peña will cooperate and expects the case to end without a conviction, maintaining that his client did not participate in the bank’s operations or in decisions involving public-institution deposits.¹ The case follows Peña’s removal by the Senate amid the Ueno Bank crisis; former vice-president Pedro Alliana has assumed the presidency for the remainder of the term.²