Political corruption, impeachment attempts rock Bolivia’s infra sector

Bolivia’s public works minister Édgar Montaño escaped impeachment, facing accusations of mismanagement and corruption, while seven water infrastructure projects are affected by a scandal involving former environment minister Juan Santos Cruz.

Montaño faced impeachment on May 19 over alleged irregularities in the administration of state airline BoA and neglect of airport projects, but the accusers fell eight votes short of the needed two-thirds majority, state news agency ABI reported.

Montaño also faced criticism over his handling of a corruption probe involving alleged bribes in the awarding of the Sucre-Yamparáez highway.

Lawmakers loyal to former president Evo Morales, who criticized corruption scandals in the current administration, said after the vote that Montaño will not escape another vote. One lawmaker was quoted as saying by daily Los Tiempos that Montaño will be gone at the next impeachment opportunity.

Meanwhile, Santos was arrested on May 16. He resigned on May 11. Daily Página Siete reported that the main witness – a former ministry employee – claimed Santos charged 2% of the contract value for himself and tasked her with the negotiations.

Two of the seven projects – an 83mn-boliviano (US$12mn) sewage system in La Paz’s Viacha district, awarded to Constructora Apolo, and a 64mn-boliviano pipeline in Cochabamba’s Chinchaya district – are already finished.

Three contracts for the pipeline were awarded to Empresa Constructora y Consultora Daoli for 20.5mn bolivianos, Asociación Accidental Quenamari for 22.3mn bolivianos and Asociación Accidental Aguas del Sur for 21.1mn bolivianos.

Originally, the probe targeted Santos’ nephew and another former ministry employee, who allegedly bought properties with illicit money, according to state news agency ABI.

Investigations started in January and involve 15 persons of interest, although more could be involved, the justice ministry said in a statement.