Trump and Netanyahu ally impeached and detained

Paraguay’s former President Santiago Pena, a close ally of US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, has been impeached and placed under house arrest over a massive banking scandal that has put nearly three million people’s savings in jeopardy.

The country’s Senate voted on Friday to remove Pena from office over alleged misconduct linked to the collapse of Ueno Bank, a rapidly expanding digital lender with close ties to his administration. Prosecutors subsequently placed the former president under house arrest on suspicion of breach of trust and other offenses, according to AP.

The arrest order also targets former Central Bank chief Carlos Carvallo, who previously served as a senior executive at Ueno. The authorities have accused Pena of using his political influence to channel hundreds of millions of dollars in public funds into the lender while turning a blind eye to serious financial irregularities.

Pena, who has denied wrongdoing, announced his resignation on Thursday amid mounting public outrage and mass protests in the capital, Asuncion.

However, lawmakers refused to accept his departure and pressed ahead with impeachment proceedings, seeking to strip him of the legal immunity ordinarily granted to former presidents.

The embattled leader failed to appear at Friday’s Senate hearing after lawmakers rejected his request for an additional 72 hours to prepare his defense. His lawyers argued that he had been denied due process and threatened to challenge the proceedings in court.

Vice President Pedro Alliana has since been sworn in as Paraguay’s new leader and is expected to serve out the presidential term until August 2028.