A judge ordered five months of preventive detention for former Bolivian President Luis Arce on Friday, who is under investigation for corruption allegedly committed while he served as Minister of Economy under Evo Morales.

Following a virtual hearing, Judge Elmer Laura ruled that the 62-year-old must be held at the San Pedro prison in La Paz. Arce faces charges of breach of duty and conduct detrimental to the economy, crimes punishable by up to six years in prison.

Prosecutors alleged that in 2015, Arce authorized the transfer of public money into private accounts. These funds belonged to the Indigenous Fund, which was created to finance productive projects in poor rural communities.

Although the scandal initially broke in 2017 with reports of millions being diverted, investigations remained stagnant during the previous administration despite being considered a major corruption case of the Morales era.

During the hearing, Arce claimed his arrest was "irregular and illegal," stating that masked agents detained him without a warrant. He declared his innocence, labeling the accusations as political persecution and calling himself a "scapegoat." His defense team argued that prison poses a risk to his life as he is a kidney cancer survivor requiring ongoing medical care. The judge ruled that authorities must guarantee his safety and necessary medical attention.

The investigation was reopened after center-right President Rodrigo Paz took office, with officials claiming a "looting" of public funds occurred during the nearly 20 years of MAS rule. While the total economic damage hasn't been fully quantified, the current government estimates the embezzlement linked to Arce exceeds $51 million.

Investigations suggest the money was diverted to "buy loyalties" from union leaders and indigenous groups during election campaigns.

The case has heightened political tensions, as prosecutors have not ruled out summoning Evo Morales to testify. This possibility has alerted Morales' supporters in the Chapare region, where the former leader is currently entrenched to avoid an arrest warrant issued last year regarding alleged abuse of a minor in 2016.

Arce's detention comes at a difficult time for the Paz administration, which is facing initial protests over chronic fuel shortages. The country is navigating its worst economic crisis in 40 years, with the government yet to decide whether to maintain or lift fuel subsidies that critics argue are draining public resources.

AP Video by Carlos Guerrero