News|CorruptionBolivia jails ex-president Arce on corruption charges ahead of trialFormer leader denies charges over alleged diversion of funds meant for Indigenous development projects
A Bolivian judge has mandated the detention of former President Luis Arce for a period of five months as prosecutors conduct an investigation into allegations of embezzlement. These allegations involve the misappropriation of funds intended for…
A Bolivian judge has mandated the detention of former President Luis Arce for a period of five months as prosecutors conduct an investigation into allegations of embezzlement. These allegations involve the misappropriation of funds intended for Indigenous communities.
Arce, who concluded his term in office one month prior, appeared before Judge Elmer Laura in a virtual hearing on Fri, Dec 11, 2025, following his arrest in La Paz. The judge denied requests from Arce’s legal team for his release and decided that he must remain in custody in a major prison facility in the capital. This decision was based on the severity of the charges, which involve state resources intended for vulnerable sectors.
No trial date has been scheduled at this time.
The charges against Arce pertain to his tenure as Economy Minister under former President Evo Morales from 2006 to 2017. Authorities claim that during this period, approximately $700 million was diverted from a state fund designed to allocate natural gas revenues to development projects for Indigenous populations and peasant farmers.
Interior Minister Marco Antonio Oviedo of the current government stated that Arce is “the principal person responsible” for authorizing the transfer of significant sums into officials' personal accounts for projects that were never realized.
These allegations involve the misappropriation of funds intended for Indigenous communities.
During the hearing, Arce asserted his innocence, denying any personal involvement with the fund management. He described the accusations as politically motivated and referred to himself as a scapegoat. His legal team had sought his release on health grounds, citing previous kidney cancer treatment. However, Judge Laura rejected this appeal and ruled for a five-month detention, exceeding the prosecution’s request for three months.
The investigation into the fund dates back to 2015 when it was shut down amidst corruption allegations. However, progress was delayed during the governance of the Movement Toward Socialism party. The case was revived following the election of President Rodrigo Paz, who assumed office last month, thereby ending nearly two decades of left-wing rule in Bolivia.
Paz, who campaigned on an anti-corruption platform, is addressing the country's significant economic challenges. Vice President Edmand Lara expressed support for Arce’s arrest, emphasizing accountability for misappropriated funds.
Several former ministers from Arce’s administration have criticized the arrest as political persecution and an abuse of power.
If convicted, Arce could face a prison sentence of up to six years.
Based on reporting by Al Jazeera.