Peru’s Entire Presidential Cabinet Fired Over Oil Scandal, is President Next?
A gigantic political scandal has rocked Peru in the past week. During the confusion and charges of corruption, the President’s cabinet has been forced to resign.
The scandal emerged last week when a Peruvian TV station played audio recordings it had obtained from an anonymous source. The conversations involved high ranking members of Peru’s government discussing bribes they would receive from the Norwegian Oil Company, Discover.
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The company had won 4 exploration contracts after “bidding” for them in an auction last month. These contracts would have allowed Discover to explore for oil in places such as Peru’s famous Madre de Dios rainforest region. However, after word of hidden bribery became public, Peru’s president, Alan Garcia, was immediately pressured by opposition leaders to fire his cabinet of ministers.
On Friday a confusing chain of events transpired, where Garcia’s ministers resigned immediately prior to Peru’s Congress voting to force them out of office–a classic performance of political theater.
Details about what truly happened are sparse beyond what we know from the audio tapes. An investigation has been ordered by Congress of all of the oil concessions that have been granted since Garcia came into office in 2006. Jorge Del Castillo, Peru’s prime minister, was implicated in the recordings as someone who could have helped to facilitate the oil bidding process in Discover’s favor. So far, Del Castillo, Discover, and all other parties involved have denied the accusations of corruption and bribery. Del Castillo and Garcia’s ministers can now mount his defense from the sidelines (save several who were recently appointed and who were thus spared).
Perhaps the biggest loss is that of Antonio Brack, Peru’s Minister of the Environment. Having been recently appointed in the earlier part of this year, he was charged with helping Peru to combat problems associated with climate change and the environment. He recently announced the creation of a 3,000 person “Environment Police” that would help stop illegal deforestation in the Amazon Rainforest region of Peru. It’s unclear now if that plan and others will be put on hold.
Alan Garcia has already appointed Yehude Simon, a left-wing provincial governor, as his new prime minister. Although Yehude was jailed in the past for having been linked to a Peruvian terrorist group known as Tupac Amaru (a less well-known group internationally than the Shining Path), he was officially pardoned in 2000. It is thought by some that he will be able to appeal and work with Peru’s various political parties to bring about consensus. But a formidable question still looms over Peru.
What will be the fate of President Alan Garcia?
As an American living in Peru and viewing events transpire, I find it quite incredible that Alan Garcia himself has not been forced to the brink of resignation (perhaps this is still to come). It is unclear to me why his ministers collectively have been associated with the scandal and not he himself. With an approval rating hovering around 19% (can you say popular?)–coupled with public memories of his terrible first term in the 1980s (which ruined Peru’s economy)–it’s no wonder that the opponents he beat in the 2006 election were the same people pushing for his cabinet’s resignation. Why are they stopping there? They might now have a good chance at control of the presidency.
Of course, again writing as an outsider, I am maybe not the best judge of what would be best for Peru. But it seems that if you want to end a cycle of corruption, you must go for the head of the beast, rather than its limbs. Perhaps what is stopping Garcia’s opponents from pushing further is the fact that the country’s economy has grown by approximately 9% in the past few years: one of the best rates of growth in all of South America. Removing Garcia as president might make the economic growth rate decrease considerably–and they might share in the blame.
Photo Credit: Government of Peru










I truly detest it when the dark side of my predictions come true. It is almost always NOT a surprise to discover corruption in places of power.
It requires constant attention on the part of regular people to steadfastly avert and avoid corrupt influences. AND buy less stuff. AND use less oil.
Live simply my friends, even more simply than I can.