Former Bolivian Leader Luis Arce Detained Amid Expanding Corruption Inquiry

Former Bolivian president Luis Arce was taken into custody on Wednesday as authorities intensified a sweeping corruption investigation targeting officials from previous administrations. The detention, confirmed by the Special Force to Fight Crime (FELCC), comes only weeks after centrist candidate Rodrigo Paz assumed office, ending nearly two decades of socialist leadership.

Accusations Tied to Indigenous Development Fund

Prosecutors allege that Arce, who once served as economy minister under former President Evo Morales, played a central role in the misuse of money from the Indigenous Peasant Development Fund, a program intended to support rural and Indigenous communities. Investigators claim more than $700 million was irregularly diverted over several years, with Arce accused of approving transfers and overlooking major compliance violations during his tenure on the fund’s governing board.

Senior government official Marco Antonio Oviedo announced that Arce faces charges including breach of duty and financial misconduct. If convicted, he could receive a prison sentence of up to six years.

Supporters Denounce “Political Abduction”

Arce’s arrest immediately fueled political tension. His former presidency minister Maria Nela Prada argued that no warrant was presented and described the incident as a “kidnapping,” saying Arce was stopped while walking in La Paz after teaching a university class. According to her account, officers placed him in a vehicle with darkened windows and transported him to FELCC headquarters without explanation.

Attorney General Roger Mariaca confirmed that Arce exercised his right to remain silent during questioning and will appear before a judge who will determine whether he awaits trial in custody.

Government Hails Move as Anti-Corruption Effort

Officials in the Paz administration defended the arrest as part of a broader attempt to restore public trust in state institutions. Former police Capt. Edman Lara, a former police officer, praised investigators on social media, asserting that those who “stole from the people” would be held accountable.

Since taking office, President Paz has created more than ten investigative commissions to examine alleged irregularities under previous MAS governments. The inquiry into the Indigenous fund has already resulted in the arrest of former Mas deputy Lidia Patty, signaling what appears to be a large-scale effort to revisit cases long criticized by opposition groups.

A Nation Divided

Arce, who governed from 2020 until handing over power earlier this year, leaves office amid growing frustration over inflation, fuel shortages, and a slowing economy. His supporters argue that the charges mirror a familiar cycle in Bolivian politics, where incoming governments frequently target predecessors through the courts.

Political observers note that similar accusations of persecution emerged during Arce’s own presidency. His administration oversaw the imprisonment of former interim leader Jeanine Añez and pursued legal action against ex-president Evo Morales, deepening polarization across the country. Many of those figures have since been released following Paz’s electoral victory.

Arce’s court appearance is expected later this week, a moment likely to shape the tone of Bolivia’s political landscape for months to come.

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