Asunción: Paraguay's ousted President Santiago Peña was formally charged with breach of trust and administration for personal gain over the collapse of Ueno Bank and ordered to be held at a military base while investigations continue.
Prosecutors said Peña could face up to 20 years in prison if convicted of both offences. They also asked a judge to freeze his assets and remand him in custody.
Judge Humberto Otazú on Saturday approved the request to hold Peña at a military base, saying the measure was necessary to “guarantee his compliance” with the anti-corruption investigation.
Peña was questioned by prosecutors at the Attorney General's compound in the capital, Asunción, earlier on Saturday. He was not handcuffed but was escorted by police.
The charges come a day after Paraguay's Senate unanimously removed Peña from office over allegations of misconduct linked to the collapse of Ueno Bank. Vice President Pedro Alliana was sworn in as his successor and began naming a new Cabinet on Saturday.
The bank was placed under regulatory intervention on Tuesday, freezing the accounts of nearly three million customers and triggering the country's biggest political crisis in a decade.
Lawmakers accused Peña of using his political influence to direct hundreds of millions of dollars in public funds into Ueno while regulators overlooked risky insider lending. Peña has denied wrongdoing.
Paraguayan prosecutors had also ordered the arrest of former Central Bank chief Carlos Carvallo on Friday as part of the criminal investigation into the bank's collapse. It was not immediately clear whether he had been taken into custody.
The Central Bank said on Saturday that 1.2 million Ueno customers had received partial or full reimbursement of their deposits. Under Paraguayan law, deposits of up to $37,000 are insured.
Peña had submitted his resignation on Thursday, but Congress rejected it and proceeded with impeachment. Opposition lawmakers had insisted on removing him to prevent him from leaving office with parliamentary immunity.
Public anger over the bank's collapse has continued, with thousands of protesters demanding access to their frozen savings and accountability for the failure. Demonstrations this week saw clashes with police, who used rubber bullets and pepper spray.
A few dozen protesters gathered outside the Attorney General's compound on Saturday as Peña was questioned. Some also called for Alliana, a close ally of the former president, to be investigated.