Q24N — The regime of Daniel Ortega and Rosario Murillo tried and convicted its longtime ally and economic advisor, Bayardo Arce, who had been detained last year.
The swift justice followed the escape to Costa Rica of Arce’s wife, Amelia Ybarra-Rojas, and her brother Amilcar, who had been closely watched by Nicaraguan authorities.
Arce, who is 76 years old and a veteran Sandinista commander, was first detained in July 2025 after a police raid on his home in Managua involving dozens of officers from the Special Operations Directorate. The arrest came amid a broader government-led corruption investigation and political shake-up in the country.
Arce had previously been placed under house arrest in March 2025, but no formal charges were made public at that time. His July arrest marked a sharp escalation, with authorities accusing him of money laundering.
On Tuesday, after six months in detention, a Nicaraguan court declared Bayardo Arce guilty of money laundering. This conviction came shortly after his wife and brother-in-law, , who had been under police surveillance, were able to slip through and make their way to Costa Rica last week.
Bayardo’s brother, Gerardo, was forced to resign as a Supreme Court Justice earlier this month.
Once a prominent figure within the Sandinista Front and a close adviser to Ortega, Arce’s fall from grace underscores the shifting political dynamics in Nicaragua. He was one of the original nine Sandinista commanders and had wielded considerable influence over economic matters in the government. His arrest and conviction have been viewed by some as part of a consolidation of power by Ortega’s inner circle, amid ongoing tensions and accusations of authoritarianism within the country.
Throughout his career, Arce has been recognized for his commitment to the ideals of the Sandinista movement, advocating for social justice, economic sovereignty, and national independence. He has often emphasized the importance of education and innovation as tools for Nicaragua’s progress.
The revolutionary commander who helped overthrow Somoza in 1979 now languishes in La Modelo, the same prison where the regime locked up hundreds of protesters after the 2018 protests.
Despite his conviction, details about the specific allegations and the evidence presented in court remain limited in public reporting.
That little made public about the case, was the statement from the Attorney General’s Office: “The illicit capital produced by the accused amounts to USD $2,713,583,217 and C$82,344,806,790. As compensatory measures, the cancellation of companies and the confiscation of assets were ordered.”
According to the Attorney General’s Office, “49 companies were identified, 35 of which were actively operating to channel illicit capital flows. The money laundering was carried out through fictitious loans and international transfers to Panama and the British Virgin Islands.”
Arce’s case is emblematic of the wider crackdown on former allies and political figures in Nicaragua, signaling a turbulent chapter in the nation’s political landscape.