Financial Crime World

Bolivia’s Lava Jato Investigations: Two Companies Accused of Wrongdoing

La Paz, Bolivia - The Bolivian government has launched a series of investigations into alleged wrongdoing by two companies, YPFB and a congressional representative, as part of the country’s ongoing Lava Jato investigation.

Economic Damage

According to officials, the estimated economic damage to the state amounts to USD 2.2 million in connection with YPFB’s alleged dereliction of duty and anti-economic conduct. However, the National Public Prosecutor’s Office rejected the claim, citing insufficient evidence.

Extortion Case

Separately, a private citizen claimed to have been extorted by the Fifth Criminal Instruction Judge of El Alto, who allegedly requested a payment of USD 10,000 to dismiss a criminal case against the citizen. The affected citizen presented a recording of over 50 minutes in which the accused judge coordinated the extortion with a Prosecutor’s Office official.

Congressional Representative Charged

In another high-profile case, a congressional representative was charged with money laundering after making transfers worth USD 51 million to four countries between 2018 and August 2021.

Arrests and Charges

The investigations have led to arrests and charges against several officials, including:

  • A prosecutor’s office intern accused of conspiracy and extortion
  • The former Minister of Environment and Water, who is accused of illicit enrichment and money laundering

Bolivian Soccer Federation

Meanwhile, the Bolivian Soccer Federation (BSF) filed a criminal claim with the Public Prosecutor’s Office of La Paz for fraud and criminal association, alleging the existence of a corruption network among officials, referees, and players.

Prevention Measures

As the investigations continue, authorities are expected to implement measures to prevent corruption, including:

  • Developing an interoperable risk management system
  • Incorporating anti-corruption clauses in public contracts
  • Strengthening coordination with private sector companies

Outlook for the Next Year

From the public sector perspective, it is expected that in 2024, the government will continue implementing its Plurinational Policy Against Corruption. The policy outlines medium-term objectives such as:

  • Developing an interoperable risk management system
  • Incorporating anti-corruption clauses in public contracts
  • Strengthening coordination with private sector companies

Additionally, the Financial Intelligence Unit (FIU) is expected to progressively regulate new sectors that will be subject to anti-money laundering dispositions.

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