Bolivia’s Ex-President Luis Arce Arrested Over Corruption Allegations

Bolivia’s Ex-President Luis Arce Arrested Over Corruption Allegations

Former Bolivian President Luis Arce was detained Wednesday in La Paz, accused of alleged corruption dating back to his time as Minister of Economy under President Evo Morales (2006–2019). His arrest comes just a month after leaving office, amid a political transition that ended two decades of rule by the leftist Movimiento al Socialismo (MAS) and marked the rise of center-right leader Rodrigo Paz.

The 62-year-old Arce spent his first night in police custody while prosecutors advanced charges of “breach of duties” and “anti-economic conduct,” crimes linked to the management of the Indigenous Development Fund, one of the largest corruption scandals in recent Bolivian history.

The Case

The investigation focuses on alleged misappropriation of resources from the Fund for the Development of Indigenous Peoples (Fondioc), a state agency that, since 2006, managed 5% of the Direct Hydrocarbons Tax to finance productive projects in rural communities.

Between 2006 and 2014, the fund received over 3.197 billion bolivianos (around 460 million dollars), but internal audits revealed a systematic pattern of irregularities: nonexistent projects, unsupported disbursements, payments to personal accounts of social leaders, and politically motivated use of funds.

The board overseeing the fund included multiple ministries, including the Ministry of Economy under Arce, and MAS-aligned social organizations. Prosecutors argue that this institutional design allowed broad discretion in resource allocation and weak oversight.

The case gained momentum after former lawmaker Lidia Patty — detained last week — testified that she received roughly 100,000 dollars for a tomato cultivation project and that the transfer was approved by Arce. Her statement strengthened the prosecutors’ argument that the former president authorized irregular disbursements.

A Preemptive Arrest

Arce was detained in La Paz’s Sopocachi neighborhood while reportedly alone, according to former minister María Nela Prada.

Images published by local media showed Arce inside an official vehicle being transported to the offices of the Special Force to Fight Crime (FELCC).

Vice President Edmand Lara praised the arrest, saying the Anti-Corruption Division “apprehended former President Arce in compliance with a prosecutorial order,” and added that his administration had already warned that Arce would be “the first to go to prison.”

Next Steps

During his initial hearing, Arce exercised his right to remain silent. Attorney General Roger Mariaca explained that, since the events under investigation occurred while Arce was minister, he will be prosecuted in the ordinary justice system.

He will not face a “trial of responsibilities,” a process reserved for sitting presidents that requires congressional approval.

Prosecutors have not yet released an official estimate of the financial damage directly attributed to Arce, though the government estimates that total losses linked to the scheme exceed $51 million.

A Moment of Political Transition

Arce’s detention comes amid deep political fragmentation.

Following his electoral victory, President Rodrigo Paz criticized the previous administration, claiming he inherited a state transformed into “an extraordinary sewer,” blaming MAS for alleged mismanagement.

His government has launched broad audits of state-owned enterprises, while prosecutors have pursued charges against former officials, including a recent indictment of six executives from the state oil company YPFB.

The arrest also occurs amid the largest internal split within MAS since its founding, deepening the rift between Arce and Morales and reshaping Bolivia’s political landscape after the decline of the party’s long-standing socialist dominance.