Bolivia lawmakers force economy minister's removal in setback for President Paz

LA PAZ, Aug 18 - Bolivia's Congress on Tuesday voted to censure Economy Minister Jose Gabriel Espinoza, a move that forces his removal and deals a fresh blow to President Rodrigo Paz at a delicate moment for his economic reform agenda.

Lawmakers backed the motion by majority vote after Espinoza failed to appear before Congress to answer questions on his management of the economy, monetary policy and macroeconomic planning. Espinoza said he had to travel to the city of Santa Cruz to address diesel supply problems before heading to Brazil.

The vote 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.

The program is seen as key to helping stabilize the economy and easing persistent shortages of fuel and foreign currency.

Espinoza has been part of Paz's government since the administration took office in November and has become one of the main architects of the government's economic policy. He has also played a central public role in negotiations with multilateral lenders.

In recent weeks, Espinoza also faced criticism over the alleged purchase of an Audi vehicle at a declared price well below market value. Espinoza said the discrepancy was the result of a paperwork error. REUTERS