Bolivia President Rodrigo Paz has endured one of the toughest weeks of his presidency, facing political divisions, economic pressure and a major scandal involving a close adviser.
The turmoil reached a new level on Friday when Paz dismissed Economy Minister José Gabriel Espinoza.
The minister’s removal followed a congressional vote against him and came as Paz struggles to push through an economic reform agenda.
The president has faced several setbacks in just seven days. His main congressional ally broke with his party. A sharp fuel price increase triggered fresh public anger. Police also arrested an influential adviser over the shooting of a woman who says she has evidence of corruption linked to people close to the government.
“These are not easy times for the country,” Paz said Thursday.
Bolivia President Paz Loses Key Economic Ally
Paz fired Espinoza on Friday after Congress voted to remove him from office.
Espinoza had played a central role in Paz’s plans to shift Bolivia toward a more market-oriented economy.
The controversy began with Espinoza’s purchase of an Audi Q4 for about $5,000. Prosecutors opened an investigation into whether he falsified documents or misrepresented his income.
Espinoza has denied wrongdoing. He said a clerical error caused the reported discrepancy in the vehicle’s purchase price.
Congress also criticized him for missing a hearing about Bolivia’s economic problems.
Paz initially rejected the congressional vote and called it unconstitutional. He later changed course and removed Espinoza.
The decision exposed the president’s fragile position in Congress.
Veronica Rocha, a Bolivian political analyst, said the vote revealed the government’s limited control over lawmakers.
Paz now faces a difficult task. His administration needs Congress to approve a proposed $1.9 billion International Monetary Fund deal and unlock a $200 million World Bank loan.
The government also wants legislation that could help bring more foreign currency into Bolivia.
Fuel Prices Add to Public Anger
Bolivia’s economic problems have added to the pressure on Paz.
His government previously reduced long-standing fuel subsidies. That decision pushed prices higher and created anger among ordinary Bolivians.
This week, the government increased the price of diesel for bulk purchases by 84%.
The move angered farmers and prompted calls for a nationwide strike.
Paz has secured support in principle for an IMF agreement and other international loans. However, those deals have yet to provide significant relief for households facing higher living costs.
Casey Cagley, a senior adviser at Red Telescope Global who studies Bolivia, said the government had achieved some progress with international lenders.
However, he said those achievements had not yet improved affordability or delivered major economic reforms.
Adviser’s Arrest Creates New Crisis
The week’s most explosive development came Tuesday with the arrest of Fernando Cerimedo.
The Argentine political strategist has close ties to Paz and previously worked on digital campaigns for right-wing leaders, including Argentine President Javier Milei and former Brazilian President Jair Bolsonaro.
Bolivian prosecutors charged Cerimedo with attempted femicide after two men allegedly disguised themselves as delivery workers and shot his former romantic partner, lawyer Nadia Beller.
The attack left Beller with multiple gunshot wounds outside a hotel.
From her hospital bed, Beller accused Cerimedo of arranging the attack to silence her. She said she possessed evidence involving alleged corruption connected to Cerimedo and others close to Paz.
Cerimedo has denied any involvement.
His lawyer dismissed Beller’s accusations as an attempt to destabilize the Bolivian government.
Milei also appeared to defend his former adviser by reposting claims on X that described the shooting as a setup.
Police Seize Cash and Equipment
The investigation expanded after Beller published photographs showing drawers filled with cash.
Prosecutors raided four properties linked to Cerimedo. They said investigators seized more than 500,000 bolivianos, worth roughly $44,000, along with additional dollars and euros.
Authorities also confiscated equipment they described as a “bot farm,” which can automate large numbers of social media accounts.
Late Friday, a judge in Santa Cruz ordered Cerimedo to remain in prison for 180 days while investigators continue examining the case.
The arrest has raised questions about the adviser’s actual influence inside Paz’s government.
Officials have tried to downplay his role. The government described Cerimedo as an important campaign adviser who now receives occasional consultations.
Paz’s critics tell a different story.
Vice President Edman Lara has described Cerimedo as a powerful and shadowy figure who influenced communications and government appointments.
Paz Faces a Tough Road Ahead
The latest problems add to a difficult first nine months for Paz.
Only six of the 15 ministers he originally appointed remain in their positions.
Political disputes, corruption allegations and street protests have repeatedly challenged his administration.
His relationship with Vice President Lara has also deteriorated sharply. The partnership that helped Paz win last year’s election has now turned into open hostility.
The government also faced a major fuel crisis after contaminated gasoline damaged more than 10,000 vehicles. Authorities arrested Paz’s former hydrocarbons minister over the controversy.
At another point, protesters surrounded the government headquarters for almost eight weeks. Some demonstrators carried dynamite and demanded Paz’s resignation.
Paz survived those challenges.
However, the latest combination of political divisions, economic hardship and allegations surrounding a close adviser could prove more difficult.
Casey Cagley said Paz could survive the latest setbacks, but warned that the road ahead would be extremely difficult.
For Bolivia President Paz, the immediate challenge is to regain political control while addressing inflation, fuel shortages and foreign currency problems.
His government must also convince lawmakers and the public that its economic reforms can deliver results without triggering another wave of unrest.
