Bolivian general arrested after apparent failed coup attempt as government faces new crisis

LA PAZ, Bolivia (AP) — Led by a top general vowing to “restore democracy,” armored vehicles rammed the doors of Bolivia's government palace Wednesday in what the president called a coup attempt, then quickly retreated — the latest crisis in the South American country facing a political battle and an economic crisis.

Within hours, the nation of 12 million people saw a rapidly moving scenario in which the troops seemed to take control of the government of President Luis Arce. He vowed to stand firm and named a new army commander, who immediately ordered the troops to stand down.

Soon the soldiers pulled back, along with a line of military vehicles, ending the rebellion after just three hours. Hundreds of Arce’s supporters then rushed the square outside the palace, waving Bolivian flags, singing the national anthem and cheering.

The soldiers' retreat was followed by the arrest of army chief Gen. Juan José Zúñiga, after the attorney general opened an investigation.

Government Minister Eduardo del Castillo said that in addition to Zúñiga, former navy Vice Adm. Juan Arnez Salvador was taken into custody.

“What was this group’s goal? The goal was to overturn the democratically elected authority,” del Castillo told journalists in announcing the arrests.

Late Wednesday, Defense Minister Edmundo Novillo said “everything is now under control.” Surrounded by the new military chiefs appointed by Arce, Novillo said that Bolivia lived a “failed coup.”

The apparent coup attempt came as the country has faced months of tensions and political fights between Arce and his one-time ally, former leftist president Evo Morales, over control of the ruling party. It also came amid a severe economic crisis.

The clashes have paralyzed the government’s efforts to deal with the economic crisis. For example, Morales’ allies in Congress have consistently thwarted Arce’s attempts to take on debt to relieve some of the pressure.

Zúñiga referenced that paralysis during the rebellion, telling reporters the military was tired of the infighting and was seeking “to restore democracy.”

“We are listening to the cry of the people because for many years an elite has taken control of the country,” he said, adding that politicians are “destroying the country: look at what situation we are in, what crisis they have left us in.”

“The armed forces intend to restore the democracy, to make it a true democracy," he said.

The rapidly unfolding crisis began in the early afternoon as the streets of La Paz started filling with soldiers. Arce tweeted that the troops deployment was irregular and soon he and other political figures warned of an attempted coup.

Still, the apparent attempt to depose the sitting president seemed to lack any meaningful support, and even Arce’s rivals closed ranks to defend democracy and repudiate the uprising.

In a twist, Zúñiga claimed in comments to journalists before his arrest that Arce himself told the general to storm the palace in a political move. “The president told me: ‘The situation is very screwed up, very critical. It is necessary to prepare something to raise my popularity’,” Zúñiga quoted the Bolivian leader as saying.

Zúñiga said he asked Arce if he should “take out the armored vehicles?” and Arce replied, “Take them out.”

Justice Minister Iván Lima denied Zúñiga’s claims, saying the general was lying and trying to justify his actions for which he said he will face justice.

Prosecutors will seek the maximum sentence of 15 to 20 years in prison for Zúñiga, Lima said via the social media platform X, “for having attacked democracy and the Constitution.”

The spectacle shocked Bolivians, no stranger to political unrest; in 2019 Morales was ousted as president following an earlier political crisis.

As the crisis unfolded Wednesday, Arce confronted Zúñiga in the palace hallway, as shown on video on Bolivian television. “I am your captain, and I order you to withdraw your soldiers, and I will not allow this insubordination,” Arce said.

Surrounded by ministers, he added: “Here we are, firm in Casa Grande, to confront any coup attempt. We need the Bolivian people to organize.”

Less than an hour later, Arce announced new heads of the army, navy and air force amid the roar of supporters, and thanked the country’s police and regional allies for standing by him. Arce said the troops who rose against him were “staining the uniform” of the military.

“I order all that are mobilized to return to their units," said the newly named army chief José Wilson Sánchez. “No one wants the images we’re seeing in the streets.”

Shortly after, the armored vehicles roared out of the plaza, tailed by hundreds of military fighters as police in riot gear set up blockades outside the government palace.

The incident was met with a wave of outrage by other regional leaders, including the Organization of American States, Chilean President Gabriel Boric, the leader of Honduras, and former Bolivian leaders.

Gustavo Flores-Macias, a professor of government and public policy focusing on Latin America at Cornell University, said it’s important that world leaders and organizations keep up their condemnation of the coup attempt as developments unfold.

“If we allow the interruption of the constitutional order to take place in Bolivia, it could serve a demonstration effect,” Flores-Macias said from New York in an interview with The Associated Press. “It could send a signal that if this is OK to happen in Bolivia, it could happen elsewhere.”

Bolivia has seen intensifying protests in recent months over the economy’s precipitous decline from one of the continent’s fastest-growing two decades ago to one of its most crisis-stricken.

Arce and Morales have been battling for the future of Bolivia’s splintering Movement for Socialism, known by its Spanish acronym MAS, ahead of elections in 2025.

Following Wednesday's chaos, reports on local media showed Bolivians stocking up on food and other essentials in supermarkets, concerned about what will come next.

But addressing supporters outside the presidential palace, the country’s vice president, David Choquehuanca, vowed: "Never again will the Bolivian people permit coup attempts.”

Janetsky reported from Mexico City, and Anita Snow contributed to this report from Phoenix, Arizona.

Bolivian police hold the detained Juan Jose Zuniga, former general commander of the Army, in La Paz, Bolivia, Wednesday, June 26, 2024. An apparent failed coup attempt erupted Wednesday in the country, and Zuniga appeared to be leading the rebellion. (AP Photo/Juan Karita)

A supporter of Bolivian President Luis Arce enters Plaza Murillo after a failed coup, in La Paz, Bolivia, Wednesday, June 26, 2024. Armored vehicles rammed the doors of Bolivia's government palace Wednesday in an apparent coup attempt against Arce, but he vowed to stand firm and named a new army commander who ordered troops to stand down. (AP Photo/Juan Karita)

Bolivian police hold the detained Juan Jose Zuniga, former general commander of the Army, in La Paz, Bolivia, Wednesday, June 26, 2024. An apparent failed coup attempt erupted Wednesday in the country, and Zuniga appeared to be leading the rebellion. (AP Photo/Juan Karita)

Bolivian President Luis Arce raises a clenched fist surrounded by supporters and media, outside the government palace in La Paz, Bolivia, Wednesday, June 26, 2024. Armored vehicles rammed the doors of Bolivia's government palace Wednesday in an apparent coup attempt against Arce, but he vowed to stand firm and named a new army commander who ordered troops to stand down. (AP Photo/Juan Karita)

Supporters of President Luis Arce chase soldiers as they flee from Plaza Murillo, after a failed coup attempt in La Paz, Bolivia, Wednesday, June 26, 2024. Armored vehicles rammed into the doors of Bolivia’s government palace located in Plaza Murillo as Arce said the country faced an attempted coup. (AP Photo/Juan Karita)

FILE - Bolivian President Luis Arce attends an Indigenous ritual before delivering his annual state of the nation address at the presidential palace in La Paz, Bolivia, Jan. 22, 2024. Armored vehicles rammed into the doors of Bolivia's government palace Wednesday, June 26, 2024, as a top government official warned of a coup attempt. (AP Photo/Juan Karita, File) (AP Photo/Juan Karita, File)

A soldier gestures for journalists to leave Plaza Murillo as soldiers gather outside the presidential palace in Plaza Murillo in La Paz, Bolivia, Wednesday, June 26, 2024. Bolivian President Luis Arce warned Wednesday that an “irregular” deployment of troops was taking place in the capital, raising concerns that a potential coup was underway. (AP Photo/Juan Karita)

Soldiers gather outside the Legislative Assembly in Plaza Murillo in La Paz, Bolivia, Wednesday, June 26, 2024. (AP Photo/Juan Karita)

Soldiers block the street in front of the presidential palace, right, and the Legislative Assembly, left, in Plaza Murillo in La Paz, Bolivia, Wednesday, June 26, 2024. (AP Photo/Juan Karita)

Soldiers walk amid tear gas they fired outside the Legislative Assembly in Plaza Murillo in La Paz, Bolivia, Wednesday, June 26, 2024. (AP Photo/Juan Karita)

Military Police gather outside the main entrance to the presidential palace in Plaza Murillo in La Paz, Bolivia, Wednesday, June 26, 2024. (AP Photo/Juan Karita)

Military Police stand amid tear gas they fired outside the presidential palace in Plaza Murillo in La Paz, Bolivia, Wednesday, June 26, 2024. (AP Photo/Juan Karita)

A soldier gestures for journalists to leave Plaza Murillo as soldiers gather near the presidential palace in Plaza Murillo in La Paz, Bolivia, Wednesday, June 26, 2024. (AP Photo/Juan Karita)

PANAMA CITY (AP) — A judge has acquitted 28 people accused of money laundering in an international case known as the Panama Papers, including the co-founder of a law firm that authorities say was at the center of a conspiracy to hide money linked to illegal activities.

Jürgen Mossack founded Mossack & Fonseca with then associate Ramón Fonseca, who died in May. Mossack was acquitted on Friday along with others after a Panamanian judge found that the evidence against Mossack didn't comply with the chain of custody after authorities raided the office of the now defunct firm.

Prosecutors had accused Mossack, Fonseca and others of creating offshore companies and using complex transactions to hide money from illegal activities related to the so-called car wash corruption scandal involving Brazilian construction company Odebrecht, which pleaded guilty in U.S. federal court to a charge related to using shell companies to hide millions of dollars in bribes paid worldwide to win public contracts.

The judge noted that other evidence in the Panama Papers case “was not sufficient and conclusive to determine the criminal responsibility of the accused.”

In addition, the judge lifted personal and property precautionary measures against all the defendants, according to a judicial statement.

“We feel satisfied in the midst of mixed emotions, because many lives were affected along the way,” Guillermina Mc Donald, who was the defense attorney for Mossack and Fonseca, told The Associated Press. Her firm also represented 80% of the accused firm’s collaborators.

Judge Balaoisa Marquínez had decided to combine the Panama Papers case with another known as “Operation Car Wash,” a major anti-corruption investigation that began in Brazil.

On Friday, she ruled that in the car wash case, “it was not possible to determine the entry of money from illicit sources, coming from Brazil, into the Panamanian financial system with the purpose of hiding, concealing, disguising or helping to evade the legal consequences of the preceding crime.”

In June 2022, Mossack, Fonseca and 37 other people were acquitted in a separate money laundering case.

The investigation in Brazil began in 2014, with the Mossack & Fonseca firm later coming under scrutiny after 11 million financial documents tied to the company were leaked.

The repercussions of the leak were widespread: it led to the resignation of a prime minister in Iceland and brought scrutiny to now former leaders of Argentina and Ukraine, Chinese politicians and Russian President Vladimir Putin, among others.

FILE - Juergen Mossack, partner of the law firm Mossack-Fonseca, leaves the Supreme Court during the trial of the "Panama Papers" money laundering case in Panama City, April 8, 2024. On Friday, a Panamanian judge acquitted Mossack and 27 other people who were accused of money laundering in the notorious Panama Papers case. (AP Photo/Agustin Herrera, File)