Bolivian authorities have arrested former President Luis Arce as part of a sweeping corruption investigation, a move that has deepened political tensions barely a month after conservative President Rodrigo Paz ended two decades of socialist rule.
According to Marco Antonio Oviedo, a senior official in the new administration, Arce was detained on Wednesday on allegations of breach of duty and financial misconduct linked to the suspected embezzlement of public funds during his tenure as economy minister under former leader Evo Morales.
A specialised anti-corruption police unit confirmed to the Associated Press that Arce is being held at its headquarters in La Paz.
“It is the decision of this government to fight corruption, and we will arrest all those responsible for this massive embezzlement,” Oviedo said.
Investigators accuse Arce and several other officials of diverting an estimated $700 million from a state-run fund intended to support Indigenous communities and peasant farmers — key constituencies of Morales’ Movement Toward Socialism (MAS).
Arce, who served on the board of the Indigenous Peasant Development Fund between 2006 and 2017, was responsible for allocating money to rural development projects. Authorities allege he instead channelled part of those resources into personal expenses.
Oviedo described Arce as “the main person responsible for this vast economic damage”.
While Paz’s government argues the arrest demonstrates its commitment to combating corruption at the highest levels, Arce’s allies have condemned the move as politically motivated.
The arrest comes as Bolivia undergoes a major political shift following Paz’s election victory in October, which marked the end of nearly 20 years of left-wing governance.
Bolivia’s attorney general, Roger Mariaca, said Arce invoked his right to remain silent during questioning. He is expected to face a judge who will decide whether he remains in custody pending trial. The charges carry a maximum sentence of six years in prison.
