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Andean Group - May 2010 (ISSN 1741-4466)

PERU: Fresh oil auctions, two years after corruption scandal

Peru reopened oil auctions   in mid May, two years after the government was rocked by serious corruption allegations in the bidding process. The new auctions come weeks after the ruling Partido Aprista Peruano (PAP) was embroiled in fresh corruption allegations. They also coincide with the release of an opinion poll indicating that corruption tops the list of public concerns in Peru. Speaking at the European Union-Latin America summit in Madrid on 18 May where Peru signed a Free Trade Agreement (FTA) with the EU, President Alan Garcí­a claimed that the population fully supported his government's 'modern social model' using free trade and investment to redress social inequalities, but this poll, which also put Garcí­a's approval rating at 26%, suggests this blithe assurance might be misplaced.

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