Paraguay’s President Santiago Peña has resigned and been impeached over a major bank collapse scandal that has triggered a criminal investigation into his alleged links with the failed Ueno Bank.

The country’s Senate voted 44 to one on Friday to remove Peña from office, shortly after Vice President Pedro Alliana was sworn in as his successor.

Peña tendered his resignation on Thursday following the overnight shutdown of Ueno Bank over a solvency crisis, leaving millions of customers unable to access their savings and sparking public outrage.

The scandal has placed Peña under house arrest as prosecutors investigate his alleged business connections to the bank and the handling of public funds deposited in the institution.

Paraguay’s Attorney General has opened three criminal cases involving the bank’s supervision and closure, the placement of public funds in the institution and the conduct of officials from various government agencies.

The Central Bank found that Ueno Bank’s solvency ratio had fallen below half of the required minimum after adjustments to its financial statements. The bank, which served about 2.9 million customers, was also accused of breaching lending limits involving related companies.

During Peña’s administration, Ueno Bank reportedly received millions in public funds, including deposits from the Social Security Institute, which manages pensions for most Paraguayan workers.

The country’s lower chamber had accused Peña of “serious and systematic dereliction of duty” over his dealings with the bank. His resignation came as lawmakers debated impeachment charges brought by opposition members and ruling-party dissidents.

Peña said he was stepping down to restore public confidence and give peace of mind to citizens who entrusted their savings to the financial system, while insisting that his decision was guided by national stability and the preservation of public institutions.

Prosecutor Christian Benítez said Peña would remain under house arrest pending a judge’s decision on his custody during the criminal proceedings. The impeachment has stripped him of parliamentary immunity, while the bank crisis has sparked protests and long queues as authorities begin processing guaranteed customer deposits.