Paraguayan president defrauded tens of millions of financial savings – senator to RT (VIDEO) — RT World Information
Lawmakers are pursuing impeachment in opposition to Santiago Pena to disclaim him immunity from prosecution
Paraguayan President Santiago Pena and his associates had been behind a large Ponzi scheme that led to the collapse of one of many nation’s largest banks, leaving almost 3 million prospects with out entry to their financial savings, Senator Esperanza Martinez has claimed to RT.
The scandal erupted earlier this week after the authorities intervened and ordered the dissolution of Ueno Financial institution, a quickly increasing digital lender. Pena provided his resignation on Thursday, however lawmakers pressed forward with impeachment proceedings to stop him from gaining immunity from prosecution.
”It was a colossal fraud undertaking, involving the president of the republic and his financial circle,” Martinez instructed RT on Thursday, accusing Pena’s associates of making a community of greater than 50 shell firms.
Based on the senator, Ueno was nearly unknown in 2023 however expanded quickly after Pena took workplace, allegedly benefiting from preferential therapy that helped it turn out to be one in every of Paraguay’s dominant lenders inside three years.
Martinez alleged that the community of firms artificially inflated the financial institution’s monetary standing by way of round transactions, describing the association as a Ponzi scheme, during which cash from new traders is used to pay earlier ones fairly than generate real earnings.
The senator additionally outlined measures to compensate affected prospects by way of a deposit assure fund established following the nation’s banking disaster within the Nineties.
Beneath current guidelines, eligible depositors can recuperate as much as 75 month-to-month minimal wages, roughly $37,000, with funds usually starting 15 days after the financial institution decision course of begins.
Emergency laws has since been enacted to speed up compensation, permitting prospects to obtain as much as 40 minimal wages ($20,000) inside 24 hours, with additional funds protecting the remaining assured quantity.
”We protected individuals in order that they’ll have liquidity shortly, inside not more than 24 or 48 hours,” Martinez stated.
Pena, a former IMF economist, held shares in an organization linked to Ueno till March 2025. His appointed central financial institution chief beforehand labored for the lender.
The collapse has prompted legal costs in opposition to 27 financial institution officers and associates, whereas prosecutors have launched investigations into the dealing with of public funds and potential misconduct by authorities officers. Pena has denied wrongdoing.
Watch RT’s full interview under:
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