By Daniela Desantis
ASUNCION, Nov 13 (Reuters) - The Paraguay prosecutor's office has added a criminal association charge against recently impeached President Santiago Peña and former central bank officials, deepening the fallout over the collapse of digital lender ueno.
In addition to Peña, former central bank president Carlos Carvallo was charged with the offense, along with three former central bank directors and the former head of the banking regulator.
Prosecutors allege the accused formed a structure made up of executive branch and central bank officials who sought to favor interests linked to ueno and its parent company.
"From the presidency of the Republic, Santiago Peña Palacios allegedly acted as the head of the organization," prosecutors said in a charging document.
Both Peña and Carvallo, who were previously charged over alleged breach of trust and administration for personal gain and placed in pretrial detention, have denied wrongdoing.
Prosecutors allege that Peña used his position as president to influence decisions by government agencies and state-owned entities to keep large amounts of public money deposited at ueno, despite maintaining financial ties to the lender.
Prosecutors also allege that Peña issued public and institutional directives benefiting the digital lender, suppressed insolvency alerts and received illicit payments.
Peña was replaced on November 6 by his vice president, Pedro Alliana, after a swift impeachment process in wake of the ueno bank collapse.
(Reporting by Daniela Desantis, Writing by Aida Pelaez-Fernandez, Editing by Daina Beth Solomon and Iñigo Alexander)
