Bolivian President Rodrigo Paz removes Economy Minister Jose Gabriel Espinoza after censure

Congressional censure and dismissal

Bolivian President Rodrigo Paz dismissed Minister of Economy and Public Finance Jose Gabriel Espinoza on Friday, 21 August 2026, publishing the decision in the Official Gazette. The dismissal followed a congressional vote on Tuesday, 18 August 2026, in which 91 of the 129 lawmakers present voted to censure Espinoza. Congress had summoned Espinoza to answer questions regarding economic policy, sovereign bond emissions, and delays in formulating the national budget. Espinoza did not attend the legislative session, requesting a postponement due to scheduled official trips to the department of Santa Cruz and Brazil, but lawmakers rejected his request. Under Bolivia's Law 1350, a presidential decree must remove a censured minister within 24 hours of formal notification.

Constitutional dispute and interim leadership

To fill the vacancy, President Paz appointed Oscar Mario Justiniano Pinto, the sitting Minister of Sustainable Production, Environment and Water, as interim Economy Minister. The decree did not establish a timeline for appointing a permanent successor. Both Paz and Espinoza challenged the validity of the legislative censure, maintaining that the measure required a two-thirds majority of the entire 166-member assembly rather than two-thirds of the 129 members present. Espinoza filed an amparo petition before the constitutional judiciary to reverse the decision. The Third Constitutional Chamber of El Alto scheduled a hearing for 24 August 2026 to evaluate the appeal. The presidential decree noted that because no injunctive order had suspended the effects of the censure resolution, the executive complied with Law 1350 while awaiting the court ruling.

Vehicle purchase allegations and cabinet turnover

Espinoza faced additional scrutiny over allegations brought by Vice President Edmand Lara concerning the purchase of an Audi Q4 luxury vehicle. Official registration documents listed the purchase price at 50,000 bolivianos (around 5,700 dollars), a figure below standard market value. Espinoza stated that the recorded amount resulted from an administrative processing error and asserted that he paid 350,000 bolivianos for the vehicle. Lara filed a formal complaint requesting an investigation into alleged breach of duty, ideological falsehood, use of forged documents, and illicit enrichment. Espinoza became the seventh minister to leave the cabinet since Paz appointed his initial 15-member team on 9 November 2025, leaving five of the original ministers in their posts.

Economic pressures and policy shifts

The dismissal occurs as Bolivia confronts severe financial strain, marked by depleted foreign currency reserves and a contraction in natural gas production caused by falling reserves and limited exploration. In December 2025, Paz removed long-standing fuel subsidies, and an April 2026 land reform initiative triggered public protests before its reversal in May. Espinoza had transitioned the national currency from a fixed to a flexible exchange rate, leading to an initial currency depreciation of up to 25% within the first month. During his tenure, the government negotiated approximately 9.5 billion dollars in financing programs with the Inter-American Development Bank, CAF Development Bank of Latin America, and the International Monetary Fund. The July 2026 IMF program remains subject to final approval by both the Bolivian Congress and the IMF Executive Board.