Bolivia Jails Ex-Central Bank Chief Over US$140M Sovereign Bond Loss

The case is the highest-level financial prosecution since the Paz Pereira transition and the first time a sitting central bank’s own administration has filed criminal charges against its predecessor leadership, marking a turning point for institutional accountability and a complication for Movimiento al Socialismo as its leaders face mounting legal exposure.

What did the court rule and who is detained?

A La Paz appeals panel revoked the house arrest initially granted by a lower court on April 30 and ordered Edwin Rojas, Pascual Oswaldo Quelali, Oscar Ferrufino, and Sergio Colque to serve two months of pre-trial detention at San Pedro prison in La Paz. The Public Prosecutor’s Office and the Central Bank of Bolivia had jointly appealed the original house-arrest ruling. La Paz Department prosecutor Carlos Torrez confirmed the detention orders were issued and the police were executing them, per La Razón.

In separate hearings, additional defendant Rolando Olmos was sent to pre-trial detention while Renán Franco received house arrest. The four core defendants were originally arrested on April 28. Prosecutors had requested six months of preventive detention; the court granted two. The charges are breach of public duties and anti-economic conduct under Bolivia’s anti-corruption code.

What is the alleged sovereign-bond fraud?

Investigators allege the central bank executives approved an internal operations regulation in 2024 that permitted seven separate sovereign-bond exchange transactions with commercial banking entities. The bonds were transferred at prices close to face value at a moment when those same bonds traded on secondary markets at 54-57% of face. Anti-Corruption Prosecutor Miguel Cardozo characterized the operations: “They bought and sold bonds at amounts higher than those established.”

The 2024 timing places the transactions during Bolivia’s acute dollar-shortage crisis. International reserves had collapsed from US$15 billion in 2014 to historic lows, parallel-market dollar premiums hit triple digits, and the central bank was deploying any liquidity tool available, per La Patria. Investigators contend the bond program transferred public funds to private financial counterparties; the defense will argue the operations were emergency liquidity management under crisis conditions.

Who is Edwin Rojas and how did the case reach this point?

Roger Edwin Rojas Ulo, an economist with a doctorate in development sciences, was installed as interim president of the central bank in November 2020 by then Economy Minister Marcelo Montenegro at the start of the Luis Arce administration. Before the central bank, Rojas served as Vice Minister of Treasury and Public Credit. He remained at the central bank for the duration of the Arce government, which ended with the November 2025 transition to Rodrigo Paz Pereira.

Source: La Paz Department Public Prosecutor’s Office; ABI state news agency; La Razón; Opinión.

The investigation was opened by complaint of the new BCB administration installed by Paz Pereira and Economy Minister José Gabriel Espinoza Yáñez in November 2025. The new leadership commissioned an internal audit that flagged the seven bond operations as irregular. The Public Prosecutor’s Office took the audit forward as formal charges in late April, per Infobae.

What does it mean for Bolivian sovereign credit and the Paz Pereira reset?

For international bond investors, the case is informational rather than directly tradable. Bolivia’s outstanding sovereign bonds already trade at distressed spreads. The new administration is signaling a hard institutional break from the Arce-era central bank and committing to disclosure-led recovery of sovereign creditworthiness. The audit-then-prosecute sequence echoes the Argentine and Ecuadorian transition playbooks, where new governments use central bank forensics to define the reform mandate.

For domestic politics, the case is part of a wider escalation. Former president Luis Arce was also recently subpoenaed in separate corruption investigations, and former president Evo Morales is preparing for trial on aggravated human-trafficking charges. The simultaneous legal pressure on three generations of Movimiento al Socialismo leadership is reshaping the opposition landscape and the bar for accountability inside the public sector, per Éxito Noticias.

What should investors and analysts watch next?

• BCB audit publication: the new central bank administration has not yet released the full audit report. Disclosure of the methodology, counterparty names, and bond series numbers would be the single most informative event for investors trying to price institutional risk.
• Counterparty banks identification: seven transactions implies multiple commercial bank counterparties. Public identification would test whether the case stays at the BCB executive level or extends into the banking sector.
• Two-month detention review: at the end of the two-month preventive period, the court will rule again on custody status. An extension or expansion would signal a broader investigative scope.
• Arce direct exposure: Rojas was appointed by Economy Minister Marcelo Montenegro under Arce. The question is whether the prosecution moves up the chain or stays at the BCB executive layer.
• Paz Pereira economic plan signaling: the case is the centerpiece of the administration’s accountability messaging. Watch for parallel announcements on dollar-shortage management, IMF re-engagement, and bond restructuring intentions.

Frequently Asked Questions

What does “preventive detention” mean in Bolivian law?

Pre-trial detention in Bolivia is a precautionary measure applied while investigations proceed, not a conviction. The court must find sufficient indication of guilt, risk of flight, or risk of obstruction. The current order is for two months, after which custody status is reviewed.

What are “breach of public duties” and “anti-economic conduct”?

Both are anti-corruption offenses under Bolivia’s penal code. Breach of public duties covers failure of officials to comply with mandated procedures. Anti-economic conduct addresses actions that cause economic damage to the state. Together they carry significant prison sentences.

How does this case fit into Bolivia’s dollar-shortage crisis?

Bolivia’s international reserves collapsed from over US$15 billion in 2014 to a fraction of that by 2024, driving a parallel-market dollar premium and a recurring shortage of foreign currency at official rates. The 2024 bond operations are alleged to have been carried out under that stress; the defense will likely argue the swaps were emergency liquidity moves while prosecutors say they violated valuation rules.

Is the Central Bank of Bolivia independent of the government?

Constitutionally, the BCB has formal autonomy. In practice, presidents are appointed in close coordination with the Economy Ministry, and the institution has historically aligned with executive policy. The new Paz Pereira administration has signaled a commitment to operational independence and disclosure standards as part of its institutional reset.

What is San Pedro prison?

San Pedro is a male prison in central La Paz known internationally for its unusual internal economy and historic housing of high-profile financial-crime defendants. Pre-trial detainees and convicted prisoners are held in the same facility.

Connected Coverage

Related Rio Times coverage: Paz Pereira wins Bolivian presidency · Bolivia dollar shortage and reserves collapse · Evo Morales human-trafficking trial advances.

Published: 2026-05-13T15:30:00-03:00 · Updated: 2026-05-13T15:30:00-03:00 · Dateline: LA PAZ