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Former Bolivian President arce arrested in major corruption probe
Bolivia entered a new moment of political uncertainty on Wednesday after former President Luis Arce was arrested as part of a sweeping corruption investigation. The development comes barely a month after conservative leader Rodrigo Paz took office, ending two decades of socialist administrations.
Government official Marco Antonio Oviedo reported that Arce faces accusations of breaching official duties and mismanaging public finances. The allegations center on the suspected diversion of hundreds of millions of dollars from a state fund originally designed to support Indigenous communities and rural farmers — groups that long served as the political base of former President Evo Morales, under whom Arce served as economy minister.
A specialized anti-corruption police unit confirmed that Arce was being held at its headquarters in La Paz. Authorities described the arrest as evidence of the new government’s determination to confront financial wrongdoing at the highest levels of power.
“This administration is committed to combating corruption,” Oviedo said, noting that the alleged embezzlement amounted to a significant loss for the state.
However, the arrest has deepened political polarization. Arce’s allies have condemned the move as politically motivated, arguing that the government is using the justice system to target past leaders.
According to investigators, Arce sat on the board of the Indigenous Peasant Development Fund between 2006 and 2017. Officials claim that during this period, he redirected part of the fund’s resources for personal use, causing what they described as “severe economic harm.” Arce has reportedly chosen to remain silent during initial questioning. Prosecutors say he will appear before a judge to determine whether he will be held while awaiting trial. The charges could lead to a prison sentence of up to six years.
Arce’s political ally and former minister Maria Nela Prada rejected the accusations, insisting the former president had no chance to defend himself before being detained. She said Arce was seized on a street in the upscale neighborhood of Sopocachi as he left a university where he teaches economics, and taken away in a vehicle with tinted windows. Authorities have not commented on this account.
