Bolivia's Congress Censures Economy Minister, Forcing His Removal

Bolivia's legislature voted on Tuesday to censure Economy Minister Jose Gabriel Espinoza, a move that compels his dismissal and delivers a significant political blow to President Rodrigo Paz's administration.

The censure motion passed with a majority in Congress after Espinoza failed to appear before lawmakers to field questions on his stewardship of the economy, including monetary policy and macroeconomic planning. The minister explained that he was absent because he had traveled to the city of Santa Cruz to address diesel supply disruptions before heading to Brazil.

The ouster comes at a precarious time for the government, which is currently seeking legislative approval for a package of economic reforms. It is also pushing for ratification of a financing program negotiated with the International Monetary Fund in July. That agreement, which still requires the green light from both Bolivia's Congress and the IMF's executive board, is considered vital for stabilizing the economy and alleviating chronic shortages of fuel and foreign currency.

Espinoza had been a central figure in the administration since it assumed office in November, serving as one of the principal architects of its economic policy. He also took a leading public role in talks with multilateral lenders.

In recent weeks, the minister had also come under fire over the alleged purchase of an Audi vehicle at a declared price far below its market value. Espinoza attributed the discrepancy to a paperwork error.