Bolivia’s Morales replaces head of state oil firm

LA PAZ, Bolivia (Reuters) – President Evo Morales on Monday
replaced the head of Bolivia’s state oil company YPFB, who had
faced accusations of corruption months after he was appointed
to the post.

The Bolivian leader named Juan Carlos Ortiz, a top YPFB
official, to take over from Jorge Alvarado. Ortiz previously
worked for foreign energy companies including Brazil’s
Petrobras, the biggest investor in Bolivia’s gas and oil
industry, analysts said.

The corruption scandal has tarnished the nationalization
drive by Morales, who took office pledging to spread the
country’s natural gas riches among the impoverished majority
and stamp out graft.

Last week, Energy Minister Andres Soliz accused Alvarado of
fraud over a barter deal to exchange crude oil for diesel with
Brazilian company Iberoamerica at a price well under the market
value.

Along with Soliz, Alvarado was one of the most public faces
of the nationalization of the energy sector announced by
Morales on May 1.

Alvarado, a geologist and former deputy for Morales’ MAS
party, was appointed to the helm of YPFB soon after the
government took office in Januay and charged with putting the
dilapidated energy company at the heart of the sector.

Bolivia has the second-largest natural gas reserves in
South America after Venezuela.