Bolivia was thrown into political shock on Wednesday as former President Luis Arce was arrested in La Paz over allegations of large-scale corruption linked to government contracts during his administration. Arce, who governed from 2020 to 2024, now faces what authorities describe as “credible evidence” of his involvement in a multi-layered graft network that allegedly siphoned millions of dollars from public funds.

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The arrest, carried out by agents of the Special Anti-Corruption Force, marks one of the most dramatic political developments in Bolivia since the fall of Evo Morales in 2019. Government officials say the investigation is far-reaching and could lead to additional arrests in the coming days.

Attorney General Wilfredo Chávez confirmed the development at a press briefing, stating that Arce is being detained on charges related to bribery, abuse of office, illicit enrichment, and criminal association. According to Chávez, investigators uncovered “substantial financial inconsistencies, unauthorized transactions, and suspiciously inflated contracts” connected to major public works executed between 2021 and 2023.

“After months of gathering evidence, analyzing financial flows, and interviewing key witnesses, we have reached the point where the former president must respond to the allegations in court,” the Attorney General said. “No one is above the law.”

Arce was reportedly taken into custody from his private residence on the outskirts of La Paz early Wednesday morning. His legal team described the move as “politically motivated” and accused the government of President David Choquehuanca of orchestrating a targeted campaign to neutralize political opposition ahead of the next general election.

A Deepening Political Divide

Luis Arce, a former finance minister under Evo Morales and one-time leader of the Movement for Socialism (MAS) party, rose to the presidency in 2020 on a platform of economic recovery and political stability. However, his tenure became increasingly strained amid disputes within MAS, economic stagnation, and public frustration over rising living costs.

The corruption probe, which began six months after Arce left office, initially focused on irregularities within the Ministry of Public Works. Investigators say the trail eventually led to top officials in the former president’s inner circle, and finally to Arce himself.

The charges stem primarily from an investigation into contracts awarded for infrastructure projects—including road construction, energy facilities, and telecommunications upgrades—that were allegedly inflated by up to 300 percent. Prosecutors claim that shell companies were used to divert public funds, with some transactions allegedly linked back to accounts controlled by Arce’s associates.

Choquehuanca’s government has denied any political motive, insisting that the case is purely a matter of accountability. “We cannot build a democracy on corruption,” the presidency said in a statement. “The Bolivian people deserve transparency and justice.”

Supporters Call It Persecution

Arce’s supporters, however, are calling the arrest an attack on democracy. Former MAS lawmakers and loyalists gathered outside the police headquarters in La Paz, chanting slogans and demanding his immediate release. They argue that the government is criminalizing political opposition at a time when MAS remains deeply divided between Arce loyalists, Morales loyalists, and the emerging Choquehuanca faction.

Evo Morales, who has been in an open political feud with Arce since their fallout in 2022, condemned the arrest but also used it to criticize Arce’s leadership. “This is a sad moment for Bolivia. However, we have long warned about misconduct in his administration. Justice must be fair, not selective,” Morales posted on social media.

Political analysts say the arrest is likely to deepen Bolivia’s already fragile political environment. After years of polarized elections, mass protests, economic decline, and internal party battles, the country now faces the possibility of renewed instability.

International Reactions and Human Rights Concerns

International observers reacted cautiously to the news. The Organization of American States (OAS) called for due process and transparency, urging Bolivian authorities to ensure that Arce’s rights are respected. Human Rights Watch warned against “any form of judicial persecution masked as anti-corruption enforcement,” emphasizing the need for independent investigations.

Meanwhile, neighbouring governments in Peru, Chile, and Argentina issued diplomatic statements expressing hope that Bolivia will navigate the crisis peacefully.

What Comes Next

Luis Arce is expected to appear before a judge within 48 hours for a preliminary hearing, where prosecutors will present the initial evidence and request his continued detention. His legal team says it will seek immediate bail and plans to challenge the arrest on constitutional grounds.

For now, Bolivia remains tense as supporters and critics prepare for potential street demonstrations. With the political landscape already fractured, Arce’s arrest adds another layer of uncertainty ahead of the next electoral cycle.

Whether the case will lead to a long legal battle or fuel further political turmoil remains to be seen. But one thing is clear: Bolivia’s struggle with corruption, factionalism, and accountability has entered a new and consequential chapter.