Paraguay: Cartes breaks with Peña and opens the door to impeachment for the right-wing Alliana to take over

The political crisis in Paraguay took a decisive turn this Thursday after Horacio Cartes, former president of the Republic and head of the Colorado Party, withdrew his support for Santiago Peña and announced that he would accompany the impeachment process against him. The statement represents a break within the ruling party, as Cartes was the main promoter of Peña's presidential candidacy in 2023 and is considered his primary political reference.

The announcement came amid the scandal surrounding the intervention and subsequent resolution process of Ueno Bank, a financial institution that left millions of Paraguayans without access to their accounts. The situation prompted demands from savers, mobilizations, and questions about the links between the bank, businessmen, and government officials.

"As president of the National Republican Association, we will not stand by the plundering of public, private, and retirees' funds. We must think of the people and the values we uphold from the Colorado Party," Cartes expressed in a statement released on his social media.

In the same message, he explicitly confirmed his support for the process against the president: "We support the impeachment of the president of the Republic, Santiago Peña, in order to restore the institutional framework of the Republic."

The decision carries significant weight because Cartes leads the structure of the Colorado Party, which maintains a strong parliamentary representation. His change of position leaves Peña without the political backing of his main supporter within the ruling party.

Congress debates impeachment of Santiago Peña over Ueno Bank case

The Chamber of Deputies convened an extraordinary session to address the request for impeachment against the president. The initiative was presented by 35 legislators and raises a series of questions related to the financial crisis of Ueno Bank.

Among the arguments included in the accusatory document are alleged conflicts of interest due to Peña's business involvement with the group linked to the entity, questions regarding the appointment of Central Bank authorities, and operations related to funds from the Social Security Institute (IPS).

The Central Bank of Paraguay decided to initiate the resolution procedure for Ueno Bank after detecting that its solvency ratio had fallen below the minimum required. The entity had approximately 2.9 million clients in a country of 6.1 million inhabitants.

The crisis also led to judicial investigations. The Prosecutor's Office charged 27 people linked to the bank and other companies in the group, and requested preventive detention for its main shareholder, Federico Miguel Vázquez Villasanti, as well as precautionary measures for other involved parties. These are ongoing investigations and accusations that will need to be evaluated by the judiciary.

The constitutional procedure establishes that the Chamber of Deputies must approve the accusation by a two-thirds majority of those present. If it secures that support, the case moves to the Senate, which must conduct the political trial and decide whether to proceed with the dismissal.

Cartes' decision alters the parliamentary landscape, as it opens the possibility for legislators from the ruling party to support the initiative. The president now finds himself in a situation of political isolation within his own party.

Pedro Alliana emerges as a possible successor to Peña, though he also faces impeachment

In parallel to the advancement of the legislative process, Horacio Cartes held a meeting with Vice President Pedro Alliana to analyze the institutional scenario and a potential presidential succession in the event of Peña's resignation or dismissal.

Alliana is a central figure in the Colorado Party and maintains a close political relationship with Cartes. If Peña definitively leaves the presidency and the vice president retains his position, Alliana would have to assume the head of state until the end of the term, according to Article 234 of the Paraguayan Constitution.

However, the scenario has a particularity: the vice president also faces a request for impeachment presented by opposition legislators and dissenting Colorados. Among the questions are his alleged intervention to facilitate legislative decisions related to Ueno Bank and his political responsibility in the management of pension funds.

Therefore, Congress will have to address two accusations separately. If both were removed, the succession would no longer correspond to Alliana, but the constitutional order provided for presidential vacancy would apply.

The players of the Paraguayan national team also demanded answers regarding Ueno Bank

The financial crisis transcended the political sphere and even reached the Paraguayan national football team. The team members issued a collective statement demanding answers from the authorities and expressing their concern for the affected savers.

"Our absolute priority must be the working people. Those who had their life savings invested there," the footballers expressed.

Additionally, they demanded that the government and the judiciary act immediately, transparently, and without distinctions, and announced that each player would individually evaluate the necessary legal actions to defend their assets.

The statement concluded with a message of national unity and a call to overcome the crisis.

The situation in Paraguay thus faces one of the greatest institutional crises of the current mandate. The break between Cartes and Peña, the advancement of impeachment requests, and the uncertainty regarding presidential succession open a new scenario within the Colorado Party, while the authorities face the challenge of restoring the trust of savers and clarifying responsibilities in the Ueno Bank case.