Bolivian President Rodrigo Paz has endured a tumultuous week, confronting significant political challenges that have tested his administration and weakened his standing. The period saw the dismissal of his economy minister, a looming threat of public unrest over fuel price hikes, and the arrest of a key advisor embroiled in a serious criminal investigation.
On Friday, Paz dismissed Economy Minister José Gabriel Espinoza, who had championed the government's pro-market reforms. This decision followed a congressional vote to oust Espinoza, fueled by mounting frustration over persistent inflation and shortages of fuel and foreign currency. Espinoza faced allegations of falsifying documents related to the purchase of a luxury car for a price significantly below market value. Prosecutors opened a criminal investigation into these claims on Monday.
Paz initially defended Espinoza, but his eventual backing down exposed a fragile coalition in Congress. The center-right National Unity party, a crucial legislative ally, had previously broken with Paz over his reliance on presidential decrees. Political analyst Veronica Rocha noted that the Espinoza vote revealed an unfavorable balance of power for the government, which now depends on the actions of other parties and lawmakers.
The dismissal of Espinoza occurs at a critical juncture, as Paz requires congressional approval for a $1.9 billion International Monetary Fund deal, a $200 million World Bank loan, and legislation to address the nation's dollar shortage. These economic measures are particularly sensitive following recent fuel subsidy cuts.
Fuel Price Hike Ignites Public Concern
Adding to the week's pressures, the government raised the price of diesel for bulk purchases by 84% this week, following earlier reductions in fuel subsidies. This move infuriated farmers and led to calls for a mass strike, highlighting public discontent over rising costs.
Advisor's Arrest Rocks Administration
The most explosive development occurred Tuesday with the arrest of Fernando Cerimedo, an Argentine political strategist closely advising Paz. Cerimedo was charged with attempted femicide after his former romantic partner, Bolivian lawyer Nadia Beller, was shot multiple times outside a hotel. Beller, from her hospital bed, accused Cerimedo of orchestrating the attack to silence her, claiming she possesses evidence implicating him and individuals close to Paz in corruption.
Cerimedo has denied any involvement in the assault. Following Beller's public accusations and her sharing of photos showing cash stuffed in drawers, prosecutors raided four properties linked to Cerimedo. They reported seizing over 500,000 Bolivianos (approximately $44,000) in local currency, along with undisclosed amounts of U.S. dollars and Euros. Investigators also confiscated equipment described as a "bot farm," used for automated social media manipulation.
Senator José Manuel Ormachea stated that the case could destabilize the government if allegations are not adequately addressed. Paz's administration has sought to downplay Cerimedo's influence, characterizing him as a campaign advisor with occasional consultative roles. However, critics within the government, including Vice President Edman Lara, have described Cerimedo as a powerful figure who influenced communications and government appointments.
Since taking office nine months ago, Paz has faced numerous challenges, including a high ministerial turnover, deteriorating relations with Vice President Lara, and significant public protests. A previous incident involving contaminated gasoline damaged over 10,000 vehicles and led to the arrest of his former hydrocarbons minister. The presidential seat also faced an eight-week siege by protesters demanding his resignation.
Analysts suggest that while Paz has weathered previous storms, the cumulative impact of the latest setbacks could present his most significant challenge to date, leading to what one advisor described as a "very, very bumpy" period ahead.