LA PAZ, Aug 21 (Reuters) – Bolivia’s government has named Oscar Mario Justiniano Pinto as interim economy minister, removing Jose Gabriel Espinoza from the post, according to a presidential decree published on Friday in the Official Gazette.
On Tuesday, Bolivia’s Congress voted to censure Espinoza, dealing a setback to President Rodrigo Paz’s government amid mounting economic challenges.
Espinoza said on Tuesday he would take legal action against the censure, which the government called unconstitutional, and turn to the nation’s top Constitutional Tribunal to review the decision.
Paz’s administration initially said Espinoza would remain in office while the tribunal reviewed the dispute.
Friday’s decree established that Justiniano, Bolivia’s environment minister, will head the economy ministry until a permanent candidate is appointed. It did not provide a timeline.
ECONOMIC REFORMS AT STAKE
Espinoza’s ouster 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.
Bolivia’s centrist government has been struggling to win both legislative and public support for its economic reform agenda. Widespread demonstrations and roadblocks over austerity measures earlier this year brought several cities to a standstill, prompting the government to issue emergency measures in an effort to contain the unrest.
The cabinet reshuffle deepens a confrontation between Paz and lawmakers at a time when Bolivia continues to grapple with shortages of fuel and foreign currency, and slow growth.
Espinoza had served as economy minister since Paz took office in November. He had become one of the principal architects of the administration’s economic policy, playing a prominent public role in negotiations with multilateral lenders.
LAWMAKERS BACK REMOVAL
The minister’s removal on Friday drew support from both opposition and ruling-party lawmakers.
Opposition lawmaker Rolando Pacheco of the leftist Popular Alliance (AP) said Paz was “showing a measure of humility and complying with the Constitution,” which he said clearly grants Congress the power to question and censure ministers.
Ruling-party lawmaker Claudia Bilbao also backed the move, saying lawmakers would “not cover for anyone” and that Espinoza’s departure should send a message to cabinet ministers that they must work with, and listen to, parliament.
In recent weeks, Espinoza had also faced scrutiny over the alleged purchase of an Audi vehicle at a declared value well below market price. He said the discrepancy was the result of a paperwork error.
(Reporting by Sergio Limachi and Daniel Ramos in La Paz; Writing by Aida Pelaez-Fernandez; Editing by Lucinda Elliott, Daina Beth Solomon and Matthew Lewis)
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