Bolivian Court Sentences Ex-President Gonzalo Sanchez de Lozada to Prison for Oil Contract Scandal

Ex-President Gonzalo Sanchez de Lozada Sentenced for Illegal Oil Contracts

In a landmark ruling, Bolivia’s Supreme Court has sentenced former president Gonzalo Sanchez de Lozada to over six years in prison for his role in awarding dozens of oil exploration and commercialisation contracts without the necessary parliamentary approval. The sentence is part of a case dating back more than 20 years, during which time Sanchez de Lozada, who served as president twice (1993-1997 and 2002-2003), faced allegations of anti-economic conduct and breach of duty.

The Charges and Ruling

Sanchez de Lozada, now aged 94 and living in exile in the United States, was found guilty of overseeing the illegal distribution of nearly 100 contracts for oil and gas exploration during his presidency. The court ruled that these contracts violated the constitutional and legal standards in place at the time.

The conviction also extended to several of Sanchez de Lozada’s former ministers. Jorge Berindoague, Carlos Alberto Contreras, and Carlos Alberto Lopez, who all held key positions in the Hydrocarbons Ministry, received five-year prison sentences for their involvement in the controversial deals.

Justice Minister Cesar Siles praised the ruling as “historic,” calling it a major victory for the victims of the 2003 Gas War—a violent conflict between Indigenous Bolivians and the government over plans to export Bolivia’s natural gas to the United States via Chile. The gas export proposal sparked outrage because it was seen as detrimental to Bolivia’s interests, especially since Chile’s 1879 war with Bolivia had led to the loss of Bolivia’s coastline, complicating the gas export deal.

The 2003 “Gas War” and Its Aftermath

The Gas War remains a significant chapter in Bolivia’s history. Protests erupted in 2003, particularly in the cities of La Paz and El Alto, leading to a deadly crackdown by the government. At least 60 people were killed, and hundreds more were injured. Sanchez de Lozada, who championed free-market policies, was forced to resign and flee to the United States after the protests turned violent.

The recent court decision is part of Bolivia’s ongoing efforts to hold those responsible for the violence and corruption during this tumultuous period accountable. Justice Minister Siles confirmed that the Bolivian government is now seeking Sanchez de Lozada’s extradition from the United States to serve his sentence.

The Significance of the Conviction

This conviction marks a crucial moment in Bolivia’s judicial history, highlighting the country’s commitment to addressing past abuses of power and ensuring accountability for actions that led to significant loss of life and national unrest. By holding Sanchez de Lozada and his associates accountable, the court has sent a strong message that high-level corruption and human rights violations will not go unpunished.

What’s Next for Bolivia?

Bolivia’s legal system continues to grapple with the aftermath of the 2003 protests and the broader challenges of governance, corruption, and accountability. The conviction of Sanchez de Lozada represents an important step forward, not just for justice but for national healing as Bolivia continues to come to terms with the historical impact of the Gas War.

While the government seeks his extradition, the case also serves as a reminder of the power of public protest in shaping political outcomes. The events of 2003 remain a symbol of the resilience of Bolivia’s people, particularly the Indigenous communities who fought to protect their nation’s resources and dignity.