Bolivia lawmakers likely force economy minister’s removal in setback for President Paz

LA PAZ, Aug 18 (Reuters) – Bolivia’s Congress voted on Tuesday to censure Economy Minister Jose Gabriel Espinoza, a decision President Rodrigo Paz’s government said was unconstitutional and signaled would be challenged before the country’s top constitutional tribunal.

Presidential spokesperson Jose Luis Galvez said Espinoza could take legal action as soon as Wednesday, suggesting the minister may remain in office while the Constitutional Tribunal reviews the dispute.

 Lawmakers backed the motion by majority vote after Espinoza failed to appear before Congress to answer questions on his management of the economy, monetary policy and macroeconomic planning. Espinoza said he had to travel to the city of Santa Cruz to address diesel supply problems before heading to Brazil.

The minister said on Tuesday that he would turn to the nation’s top constitutional tribunal to review the decision, arguing that procedures may have been violated.

Under Bolivia’s constitution, Paz has 24 hours to remove a censured minister from office. But the government argues the censure vote did not meet constitutional requirements and that the issue should be reviewed by the Constitutional Tribunal before Espinoza is removed.

The dispute raises the stakes in a confrontation between Paz and lawmakers at a delicate moment for his economic reform agenda.

“Tomorrow, the minister in question will take the appropriate actions and may eventually exercise his rights under the Constitution; however, the call is for all procedures to be conducted in accordance with the Constitution,” Galvez said.

Galvez said the vote fell short of the constitutional requirement for censure, which he said requires a two-thirds majority, or 111 votes, of the 166-member Congress. Only 91 lawmakers voted to censure Espinoza.

“Any censure resolution issued based on these results is unconstitutional,” Galvez said, arguing that internal congressional rules cannot override the constitution.

REFORM AGENDA AT STAKE

The vote comes at a sensitive time for Paz’s government, which is seeking congressional backing for economic reforms and for a financing program negotiated with the International Monetary Fund in July that still requires approval from both Bolivia’s Congress and the IMF Executive Board. 

The program is seen as key to helping stabilize the economy and easing persistent shortages of fuel and foreign currency.

Espinoza said his dismissal reflected “extreme” politicization and cited clashes between the government’s work agenda and lawmakers’ timelines.

Espinoza has been part of Paz’s government since the administration took office in November and has become one of the main architects of the government’s economic policy. He has also played a central public role in negotiations with multilateral lenders.

In recent weeks, Espinoza also faced criticism over the alleged purchase of an Audi vehicle at a declared price well below market value. Espinoza said the discrepancy was the result of a paperwork error.

(Reporting by Daniel Ramos; Writing by Kylie Madry and Natalia Siniawski; Editing by Iñigo Alexander, Mark Porter and Stephen Coates)