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Not everyone with dementia is deemed incompetent (in the legal sense) to act on their own behalf. Does he understand the concept of POA? Does he know what he is doing when he changes the POA? If he really is not legally competent to establish POA then all the changes are not effective. Was he competent when he made to original assignment? The first change? The second change? I wonder how "official" POA would be establish now. At least once you establish which POA (if any) he was competent to assign, you can prevent further changes. Stability would be nice!
But what if he is still competent in the legal sense? Is there a large estate? Is doing POA tasks complicated or time-consuming? Are all the people that he is rotating this among on the same page as to what to do? Don't get me wrong -- having it assigned and stay assigned would certainly be best. Can you get by with this POA du jour arrangement?
(Does your father do these changes with a lawyer?)
If your father has Dementia, there should be corresponding medical consultations and information from a licensed physician (his Primary Care Physician or a Psychiatrist) documenting this. With that, you, or whoever is the current Power of Attorney, can use that to show that he is incapable of making healthcare, financial, or any other kind of decisions, as he has cognitive impairments. What that means is, if he tries to change POA's again, it would be rendered ineffective.
With his paranoia, what is his behavior? Is it manageable? With Dementia, there will often come some paranoia/delusions, and again, if he has a Physician who has diagnosed him with Dementia, they should have him on some medication to help with any dangerous behaviors (wandering, danger to self/others, etc.), because obviously, he is not acting in his own best interests. You may have to start doing that for him (or whoever is the current POA).
Here's a few other things I am wondering about: Who does your dad live with? Is there tension in the family and different people wanting to take control? Does your dad have assets that others want to be in control of? Does he change his POA because of something that is said to him by other family members? When was he last seen by his doctor? Is he on any medications for his dementia?
Answering these questions would help us all better understand what you and your sister and going through.
Hugs to you, Cattails
I'm sorry to say that the answer to your question probably means that in order to stop this madness you will have to have your dad declared incompetent. I've been told that declaring someone incompetent is a messy, difficult business.
I wish you good luck. It's heart-breaking, isnt it!