Bolivia has been thrust into a fresh wave of political turmoil following the arrest of former president Luis Arce, marking one of the most significant corruption cases to hit the country in recent years. Arce, who governed Bolivia from 2020 until his departure from office in November 2025, was taken into custody late on the evening of December 10, according to a statement by former Minister of the Presidency María Nela Prada. The allegations center on accusations that Arce misused public funds earmarked for Indigenous communities during the time he served as economy minister, a role he held for more than a decade.

The former president now faces five criminal charges, including facilitating illicit enrichment, breach of duties, and involvement in an embezzlement scheme that authorities say drained hundreds of millions of dollars from the state-run Indigenous Development Fund. Government-run Bolivia Televisión described the scandal as revolving around “phantom projects”-initiatives that existed on paper but never materialized in practice. The fund, created to support Indigenous communities with infrastructure, agricultural development, and basic services, has long been viewed as a crucial tool for addressing historical inequalities. Its alleged misuse represents not only a financial crime but a profound breach of trust with the country’s most vulnerable populations.

Luis Arce, 62, rose to prominence as the economy minister under President Evo Morales, gaining recognition........

© Blitz