Former Bolivian President Luis Arce was taken into custody in La Paz on Wednesday as authorities widened their investigation into alleged corruption linked to his tenure as economy minister.
The government confirmed the arrest, which targets accusations dating back to the period when Arce served under ex-president Evo Morales between 2006 and 2019.
Arce, 62, opted not to contest the August election, a vote that ended nearly twenty years of left-leaning leadership in Bolivia. His presidency had been overshadowed by fuel scarcity, dwindling foreign currency reserves, and widespread demonstrations.
The ongoing probe alleges that Arce approved the movement of public funds into the private accounts of political figures. During a press briefing, Interior Minister Marco Antonio Oviedo praised the arrest, describing Arce as “the main person responsible” for the country’s reported $51 million loss.
One of the individuals accused of benefiting from the diverted funds is former leftist legislator Lidia Patty, who was detained last week on suspicion of receiving almost $100,000 for a tomato farming initiative.
Sources within the prosecutor’s office informed AFP that Arce will respond to allegations of dereliction of duty and “economic misconduct.” Vice President Edmand Lara insisted Wednesday that “everyone who has stolen from this country will return every last cent.” Bolivian law prevents outgoing members of the executive from leaving the country for 90 days after a change in administration.
Conservative and business-focused President Rodrigo Paz, who assumed office last month, claimed during his inaugural week that he had uncovered “a cesspool” of corruption involving previous administrations. As part of the broader audits of state institutions, six former senior officials of the national oil company YPFB were detained this week on corruption charges.
Former colleague Maria Nela Prada said Arce was alone at the time of his arrest and was transported in a minibus with darkened windows, adding that the detention occurred unexpectedly and without any advance notice.
Paz recently reiterated that his government found “a cesspool of extraordinary dimensions” linked to alleged mismanagement by the outgoing socialist leadership. Prosecutors have since intensified audits of public entities, with charges already filed against multiple former executives of YPFB.
What you should know
Luis Arce, once a key figure in Bolivia’s economic management, is now at the center of a sweeping corruption investigation tied to his years as economy minister.
His arrest marks a significant moment in Bolivia’s political transition, especially as President Rodrigo Paz pushes forward with audits targeting past administrations. Authorities claim Arce authorized the diversion of millions in public funds, accusations he must now confront in court.
The case has broadened into a larger examination of alleged misconduct within major state-run institutions, shaping the early narrative of Bolivia’s new government.
