Lat-Am Watch: Ghosts return to haunt Peru
García assailed by familiar troubles from the past
Peru’s image of recent years was one of relative stability and soaring economic growth. The painstaking reforms put in place by president Alejandro Toledo (2001-2006) placed the export economy in a slipstream culminating in some of the best macroeconomic figures for Latin America last year. Meanwhile, the government claimed that the serious social divides were finally being breached.
To many, the times when the Andean nation was plagued by rampant corruption, unabated terrorism and a roller-coaster economy seemed to have been put to rest once and for all with the election of the new & improved Alán García to the presidency in 2006 and more symbolically, with the trial of former autocrat Alberto Fujimori.
But in the past few weeks a whole parade of ghosts have come back to haunt Peru, leading to the resignation of García’s entire cabinet last week Friday.
What ignited the recent turmoil is an unfolding corruption scandal involving the state-run oil company Petroperu, the state oil licensing company Perupetro (bear with me) and a small Norwegian oil outfit called Discover Petroleum.
A taped telephone conversation broadcast on October 5 by the investigative reporters of El Cuarto Poder provided damning evidence to show that Alberto Quimper, the head of Perupetro, and Rómulo León Alegría, a prominent member of García's Partido Aprista Peruano, were guilty of influence peddling. They allegedly accepted bribes to ensure that Discover Petroleum won five of the seven oil exploration licenses it applied for in an auction in September.
(What is it about Scandinavian businesses and corruption scandals overseas? Last year Saab was accused of graft to boost jet fighter sales in the Czech Republic, then Skanska doled out millions in “commissions” here in Argentina (whatever happened to that case?) and now these Norwegians. When in Rome, I suppose…)
That scandal first forced out Mines and Energy Minister Juan Valdivia, along with Quimper and the head of Perupetro César Gutiérrez, which handled the auctions. After increasing pressure from the public and the opposition, prime minister Jorge del Castillo, a close ally of president García, stepped down and with him the entire cabinet. On Saturday Del Castillo was replaced by a left-wing independent Yehude Simon, with a reputation for crusading against sleaze.
It seems fair to suppose that García pushed for the rapid resignations. He’s eager to prove he is doing all he can to stem corruption, given that his last stint in office (1985-1990) was constantly plagued by accusations of graft. Nonetheless, his dismal approval ratings mean that the public isn’t about to cut him any slack. The day after the airing of the damning tapes, the streets of Lima swelled with protesters sensitive to decades of pocket-lining politicians.
In fact protestors have been on the streets for a number of other reasons which pre-date the television show and which make up the tinderbox that fuelled the general outcry over this latest scandal.
In July there was a general strike followed by mineworkers protest, followed by Amazonian Indians in August, angered over multinational companies encroaching on their lands. Then came a strike by 20,000 medical professionals in September who demanded the resignation of the then health minister. In November teachers plan another massive rally.
High inflation - although a regional affliction - and the perception that the commodities boom is not ‘trickling down’ has further undermined the popularity of Alán Garcia, whose rating stands at 19 percent, half of what it was in December 2007.
With the return of civil unrest and corrupt politicians a third misfortune has come back to instil fear in the lives of ordinary Peruvians. Last week Thursday 15 people were killed in a bomb attack by the Shining Path (Sendero Luminoso) terrorist group. The attack is the deadliest in years by an organization all but extinguished back in 1992.
Over the past year Sendero Luminiso has picked up where it left off, claiming a stake in the burgeoning drug-trade and ruthlessly killing peasant farmers and security officials in the Apurimac-Ene River Valley zone. Peru is now the world’s second largest cocaine producer after Colombia.
All of this makes the choice of Yehude Simon for prime minister an interesting one, which reflects a definite change of tack in García’s presidency. Simon’s left-wing credentials make him a much more palpable candidate for the angered unions and demonstrators. His appointment of a left-leaning surgeon to the post of health minister should go down well with the doctors. The fact that he’s not from the corruption-smeared APRA-party is another endorsement.
Garcia’s motivation for fielding him probably has a lot to do with trying to take the wind out of the sails of his political nemesis Ollanta Humala. The radical nationalist and former military officer who enjoys enormous popular support among the rural poor came in a close second in the elections.
The other major opposition force, the right wing Unidad Nacional led by Lourdes Flores, would normally have nothing to do with Humalla. However, the recent scandal saw both groups aligned as they clamoured for the cabinet’s resignation.
By appointing Simon, García hopes to regain some congressional support. If he manages to do just that, it’ll be the first step in a long uphill struggle for the three years that remain of his presidency.
(This column is dedicated to Michael Bond. Yesterday was exactly 50 years ago that he introduced the world to that Wellington-boots sporting bear named Paddington, who of course hails from Darkest Peru)
Peru’s image of recent years was one of relative stability and soaring economic growth. The painstaking reforms put in place by president Alejandro Toledo (2001-2006) placed the export economy in a slipstream culminating in some of the best macroeconomic figures for Latin America last year. Meanwhile, the government claimed that the serious social divides were finally being breached.
New PM Yehude Simon takes office today. Photo Andina.
To many, the times when the Andean nation was plagued by rampant corruption, unabated terrorism and a roller-coaster economy seemed to have been put to rest once and for all with the election of the new & improved Alán García to the presidency in 2006 and more symbolically, with the trial of former autocrat Alberto Fujimori.
But in the past few weeks a whole parade of ghosts have come back to haunt Peru, leading to the resignation of García’s entire cabinet last week Friday.
What ignited the recent turmoil is an unfolding corruption scandal involving the state-run oil company Petroperu, the state oil licensing company Perupetro (bear with me) and a small Norwegian oil outfit called Discover Petroleum.
A taped telephone conversation broadcast on October 5 by the investigative reporters of El Cuarto Poder provided damning evidence to show that Alberto Quimper, the head of Perupetro, and Rómulo León Alegría, a prominent member of García's Partido Aprista Peruano, were guilty of influence peddling. They allegedly accepted bribes to ensure that Discover Petroleum won five of the seven oil exploration licenses it applied for in an auction in September.
(What is it about Scandinavian businesses and corruption scandals overseas? Last year Saab was accused of graft to boost jet fighter sales in the Czech Republic, then Skanska doled out millions in “commissions” here in Argentina (whatever happened to that case?) and now these Norwegians. When in Rome, I suppose…)
That scandal first forced out Mines and Energy Minister Juan Valdivia, along with Quimper and the head of Perupetro César Gutiérrez, which handled the auctions. After increasing pressure from the public and the opposition, prime minister Jorge del Castillo, a close ally of president García, stepped down and with him the entire cabinet. On Saturday Del Castillo was replaced by a left-wing independent Yehude Simon, with a reputation for crusading against sleaze.
It seems fair to suppose that García pushed for the rapid resignations. He’s eager to prove he is doing all he can to stem corruption, given that his last stint in office (1985-1990) was constantly plagued by accusations of graft. Nonetheless, his dismal approval ratings mean that the public isn’t about to cut him any slack. The day after the airing of the damning tapes, the streets of Lima swelled with protesters sensitive to decades of pocket-lining politicians.
In fact protestors have been on the streets for a number of other reasons which pre-date the television show and which make up the tinderbox that fuelled the general outcry over this latest scandal.
In July there was a general strike followed by mineworkers protest, followed by Amazonian Indians in August, angered over multinational companies encroaching on their lands. Then came a strike by 20,000 medical professionals in September who demanded the resignation of the then health minister. In November teachers plan another massive rally.
High inflation - although a regional affliction - and the perception that the commodities boom is not ‘trickling down’ has further undermined the popularity of Alán Garcia, whose rating stands at 19 percent, half of what it was in December 2007.
With the return of civil unrest and corrupt politicians a third misfortune has come back to instil fear in the lives of ordinary Peruvians. Last week Thursday 15 people were killed in a bomb attack by the Shining Path (Sendero Luminoso) terrorist group. The attack is the deadliest in years by an organization all but extinguished back in 1992.
Over the past year Sendero Luminiso has picked up where it left off, claiming a stake in the burgeoning drug-trade and ruthlessly killing peasant farmers and security officials in the Apurimac-Ene River Valley zone. Peru is now the world’s second largest cocaine producer after Colombia.
All of this makes the choice of Yehude Simon for prime minister an interesting one, which reflects a definite change of tack in García’s presidency. Simon’s left-wing credentials make him a much more palpable candidate for the angered unions and demonstrators. His appointment of a left-leaning surgeon to the post of health minister should go down well with the doctors. The fact that he’s not from the corruption-smeared APRA-party is another endorsement.
Garcia’s motivation for fielding him probably has a lot to do with trying to take the wind out of the sails of his political nemesis Ollanta Humala. The radical nationalist and former military officer who enjoys enormous popular support among the rural poor came in a close second in the elections.
The other major opposition force, the right wing Unidad Nacional led by Lourdes Flores, would normally have nothing to do with Humalla. However, the recent scandal saw both groups aligned as they clamoured for the cabinet’s resignation.
By appointing Simon, García hopes to regain some congressional support. If he manages to do just that, it’ll be the first step in a long uphill struggle for the three years that remain of his presidency.
(This column is dedicated to Michael Bond. Yesterday was exactly 50 years ago that he introduced the world to that Wellington-boots sporting bear named Paddington, who of course hails from Darkest Peru)
posted by PIT @ 9:56 AM
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