ASUNCION — Paraguay faces intensifying political and social instability in the wake of the historic impeachment of former President Santiago Peña. The crisis, ignited by a catastrophic banking collapse and subsequent corruption allegations, has escalated with nationwide teacher strikes and the discovery of a high-tech hidden safe at the former leader's private property.

Prosecutors in the capital executed search warrants on Monday targeting both the private residence of former President Peña and the headquarters of Ueno Bank.

Peña was stripped of his presidency last week after a unanimous vote across both chambers of Congress. Lawmakers acted swiftly following revelations linking him to the collapse of Ueno Bank, an institution serving nearly half the nation's citizens. Investigators allege deep conflicts of interest, noting that Peña retained stakes in the bank's parent company well into his term and appointed the bank's chief executive to lead Paraguay's central bank. Currently held at a military facility in Asunción, Peña faces charges of breach of trust and unlawful self-enrichment, which could carry up to 20 years behind bars.

The investigation took a dramatic turn when authorities raided Peña's luxury holiday home in San Bernardino. Investigators uncovered a hidden vault outfitted with advanced Israeli biometric security—including facial, iris, and fingerprint scanning. Officials are reportedly weighing the use of explosives to breach the reinforced safe, which is suspected of containing evidence tied to the banking scandal. Financial records show the $2 million estate was funded in part by a half-million-dollar loan from Ueno Bank acquired during Peña's presidency, with monthly repayments exceeding $36,000—dwarfing his official presidential salary of roughly $5,850.

Public outrage continues to mount. While state deposit guarantee funds have reimbursed a portion of the 3 million affected account holders, deep anxiety remains over some $800 million in public funds tied up in the failed institution.

The crisis spilled onto the streets on Monday as public school educators launched a nationwide strike and mass demonstrations, demanding the immediate recovery of roughly $60 million in state pension funds trapped inside Ueno Bank. "Securing the return of our teachers' hard-earned retirement savings is our absolute priority," said Silvio Piris, leader of the Paraguayan Educators Federation.

Meanwhile, newly elevated President Pedro Alliana is scrambling to stabilize the administration. In an unprecedented move to clean house, Alliana has ordered the mass resignation of all cabinet members and high-ranking state officials.

Despite efforts to restore order, the new government remains under a cloud of suspicion. Opposition lawmakers attempted to launch impeachment proceedings against Alliana—a member of the ruling Colorado Party—though the initial effort failed, signaling a rocky road ahead for the embattled administration.

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