Former Bolivian President Luis Arce was arrested Wednesday in a corruption investigation, just a month after conservative President Rodrigo Paz took office, ending two decades of socialist rule.
Authorities said Arce faces charges of breach of duty and financial misconduct tied to alleged embezzlement from public funds during his tenure as economy minister under former President Evo Morales (2006–2019). A special anti-corruption police unit confirmed he was in custody at its La Paz headquarters.
Marco Antonio Oviedo, a senior official in Paz’s government, said Arce’s arrest demonstrates the administration’s commitment to tackling high-level graft. “We will arrest all those responsible for this massive embezzlement,” he said.
Arce’s supporters, however, called the arrest politically motivated. Maria Nela Prada, a former minister and ally of Arce, described the detention as an abuse of power, noting that he was taken from the street without prior notice.
Authorities allege that Arce and other officials diverted around $700 million from the state-run Indigenous Peasant Development Fund, intended to support rural Indigenous communities. Arce, who served on the fund’s board from 2006 to 2017, is accused of misusing the money for personal expenses. Bolivia’s attorney general, Roger Mariaca, said Arce invoked his right to remain silent and will appear before a judge to determine whether he will stay in custody pending trial. The charges carry a maximum sentence of 4–6 years.
Paz won the October elections amid public anger over economic mismanagement, including soaring inflation, fuel shortages, and depleted state coffers under Arce’s administration. His running mate, Vice President Edman Lara, vowed that the arrest is the first of a series of anti-corruption actions.
Bolivia’s judiciary has long been criticized for political bias, with past administrations using courts to target opponents. Morales and Arce previously used the system to pursue their political rivals, while former interim President Jeanine Añez and right-wing leaders were jailed, though many have since been released under the current administration.
President Paz is now reversing many leftist policies, signaling a shift in Bolivia’s political landscape after years of polarized governance.