Paraguay VP Alliana sworn is as president after predecessor impeached

Former Paraguayan Vice President Pedro Alliana was sworn in as president Friday to serve out the term of his predecessor, Santiago Peña, who was impeached earlier the same day for misconduct in office.

Alliana was elected vice president of Paraguay as Peña's running mate in 2023. He should now serve out Peña's term, which runs until August 2028.

In a unanimous vote, the 44 senators present voted to remove Peña for misconduct in office, bringing a dramatic end to one of South America's most stable presidencies.

The verdict came just three days after regulators seized Ueno Bank, cutting nearly 3 million customers off from their savings and bank cards and setting off a political crisis.

Ousted Paraguayan President Santiago Peña was placed under house arrest Friday on suspicion of breach of trust, shortly after the Senate removed him from office over the collapse of a major bank tied to his government.

Prosecutors ordered that Peña be held at his home until he can be brought before their economic crimes and anti-corruption unit, according to a letter to the national police commander.

The attorney general's office confirmed to The Associated Press that he had been detained there.

The order also called for the arrest of Carlos Carvallo, the former central bank chief Peña appointed. It was not immediately clear whether Carvallo was in custody.

Lawmakers accused Peña of using his political influence to steer hundreds of millions of dollars in public funds into Ueno while regulators overlooked risky insider lending.

Peña has denied wrongdoing.

A veteran of the long-ruling conservative Colorado party, Alliana, 52, is a former governor of the southern province of Ñeembucú and a former speaker of the lower house.

He has not escaped the scandal entirely: Prosecutors are also investigating him, and on Thursday lawmakers shelved an opposition bid to impeach him.

Peña had submitted his resignation Thursday, but Congress did not accept it. His lawyers, Ricardo Preda and Adolfo Ferreiro, argued that lawmakers should have approved his departure instead of pressing ahead with the impeachment trial.

Public outrage has become more thunderous by the day.

As senators deliberated Friday, crowds of protesters demanding their frozen savings back and accountability for Ueno's failure marched through downtown Asunción.