Peru

Items

  • Hernani forced out of interior ministry

    26 February 2009 Hits: 236

    The interior minister, Remigio Hernani, resigned on 19 February for “personal reasons". Hernani lasted just four months. He was the most controversial cabinet pick of Yehude Simon when he took over as prime minister last October, which made him very vulnerable as the public security situation deteriorated in Peru. His position fell under scrutiny as the security forces suffered several serious setbacks against the Sendero Luminoso guerrillas at the tail end of last year and evidence emerged that Mexican drug cartels were establishing themselves in Peru.

    A former chief of criminal investigation of the police, Hernani was deeply unpopular with the national police, which he accused of incompetence. His first action on being appointed last October was to criticise fiercely General Jorge Cárdenas, who was head of intelligence, for resigning from his position: Cárdenas said he had resigned because he could not work under Simon, who had been convicted on a charge of 'apology of terrorism' in 1992 and sentenced to a 20-year prison term before being pardoned in 2000 by interim president Valentí­n Paniagua; Hernani said this was a smokescreen and that Cárdenas had actually resigned because of his antipathy for him. Hernani then forced out the head of the police, Octavio Salazar, whose security plans he described as “totally erratic, and unable to stand up to the least rigorous analysis".

    The apparent resurgence of Sendero also mounted pressure on Hernani. While he is not solely responsible for the counter-insurgency campaign (the defence minister, Antero Flores-Aráoz, has responsibility for the armed forces in the Apurí­mac and Ene river valleys, VRAE) he is answerable for the police, which is conducting the campaign against another faction of Sendero in the Upper Huallaga.

    The campaign in the Upper Huallaga has not been going well. The police claimed last November to be closing the net on Camarada Artemio, the leader of the Sendero faction in Huallaga, after confiscating what they said were some of his personal effects in a cave. However, they have not caught him, and police patrols have been on the receiving end of a series of ambushes. Artemio even had the temerity to appear on a local radio station in late December when he accused the police of seizing and torturing “innocent people" in the area because they could not find him.

    Hernani attempted to explain the police's lack of success and the upsurge in Senderista violence by claiming that Mexican cartels were operating in Peru. This even prompted President Alan Garcí­a to ask his Mexican counterpart Felipe Calderón for the Mexican counter-narcotics police to come to Peru to help combat the influence of Mexican cartels. This has not come to anything, possibly because shortly after Garcí­a made the appeal, a Mexican government report indicated that half of the country's 56,000 state and municipal police evaluated in 2008 were “useless and incapable".

    New broom
    Hernani was replaced by a congresswoman, Mercedes Cabanillas, who becomes Garcí­a's second female interior minister since he came to power in 2006. Cabanillas can be counted on to be less outspoken, but the opposition is already criticising her appointment because she is a member of the ruling Partido Aprista Peruano (PAP) rather than an independent. The opposition claims that this runs counter to Garcí­a's commitment not to stack the cabinet with members of the PAP.

    • US ambassador

    The Peruvian government appointed a high-profile new ambassador to the US. Luis Valdivieso, who until recently had served as the economy and finance minister, picks up the post. Valdivieso, 58, said he would strive to improve relations and focus on increasing cooperation in the fight against drug-trafficking. He replaces Felipe Ortiz de Zevallos in Washington.

  • Casas del Alba provoke spat with Bolivia

    26 February 2009 Hits: 277

    Peru's President Alan Garcí­a exchanged sharp words with his Bolivian counterpart Evo Morales in mid-February over the Venezuelan-inspired Casas del Alba, which Peru's congress is investigating for allegedly receiving external financing to spread Venezuelan President Hugo Chávez 's 'Bolivarian' ideology.

    Morales objected to Peru sending a delegation of legislators to Bolivia as part of the investigation this month. He accused Peru of unwarranted interference in Bolivia's domestic affairs. He then repeated a theory he has for some time propounded - that there are US military bases in Peru. The US embassy in Lima emphatically denied Morales' allegation as did Garcí­a, who called on his Bolivian peer to send a congressional delegation to Peru in order to investigate for itself.

    Morales had some justification in feeling aggrieved, according to one member of Peru's delegation, Edgar Reymundo, of the centre-left Unión por el Perú (UPP). Reymundo said that the delegation, which was presided over by Walter Menchola, of the conservative Unidad Nacional, had spoken to prominent opposition leaders, such as Jorge Quiroga, the leader of the opposition coalition Podemos but not to similarly senior members of the ruling Movimiento al Socialismo (MAS). Menchola accused Morales of erecting a smokescreen to hide acts of corruption.

    Puno name change
    Intriguingly, shortly before the congressional delegation left for Bolivia, the regional government of Puno began debating whether to rename the region to reflect the identity of the majority of its inhabitants. Possibly inspired by the success of President Morales in pushing through a new constitution enshrining indigenous rights in law for the first time, the regional council of Puno established a multiparty commission to debate renaming Puno, the Región Federal Autónoma de Quechuas y Aymaras.

    The first Casas del Alba office to be built in Peru was located in Puno, which is the source of some of the friction between the central government and the regional government there. The regional president of Puno, Hernán Fuentes, has on several occasions sought to take advantage of the fact that President Garcí­a is deeply unpopular in southern Peru, particularly Puno. In March 2008, Fuentes called for “real administrative and political autonomy" for Puno and the right to insurrection when “a usurping government fails to comply with the constitution".

    Back then, the government accused Fuentes of “sedition". It also cited Fuentes' approval of an ordinance legalising coca cultivation in August 2007, the legality of which the government was forced to challenge. It used his comments to bolster its claim that foreign powers were seeking to destabilise Peru by supporting regional protests. It was at this point that Peru's congress began investigating the Casas del Alba. Congress has yet to produce any damning evidence.

    The proposal to change the name of Puno is unlikely to come to anything. The adviser of the regional council of Puno, Wenceslao Apaza Ñaupa, told the local press that the proposal was deliberately provocative to attract media attention. He said it was unimportant in itself but would help to raise awareness of the real issue at stake: the need for a constitutional amendment to increase regional autonomy.

    • La Teta Asustada

    The Peruvian film, La Teta Asustada (The Milk of Sorrow), won the coveted Golden Bear award for best film at the Berlin Film Festival this month. The film was directed by Claudia Llosa, the niece of the famous author Mario Vargas Llosa. It is a drama about a young woman, Fausta, a child of rape who suffers from a disease she believes is transmitted through the breast milk of women who were raped during the civil war between government forces and Sendero Luminoso guerrillas. The lead actress Magaly Solier sang a song from the movie in Quechua at the award ceremony.

  • Attorney general survives murder attempt

    26 February 2009 Hits: 181

    Three gunmen attempted to kill the attorney general, Gladys Echaí­z, on 31 January. Echaí­z was not injured. The motive behind the attack is unclear. The police appear to be leaning towards the line that it was a bungled robbery. Politicians, however, played up the assassination theory. Echaí­z is investigating a corruption scandal that brought down the last prime minister, Jorge del Castillo, in October 2008. Officers from Peru's naval intelligence (Dintemar), both retired and serving, are heavily implicated in the scandal.

    Echaí­z was driving in the Jesús Marí­a district of Lima when one of the assailants approached her vehicle on foot and fired twice into the driver's side window. Echaí­z was unscathed and her seven bodyguards managed to repel the attack by opening fire on the gunmen before taking the attorney general to safety. The prime minister, Yehude Simon, said that the attack was an assault on “civilian society".

    Echaí­z presented criminal charges last month against eight people accused of involvement in illegal wiretapping. Dintemar is at the heart of the scandal. Four rogue agents were arrested for moonlighting for Business Track (BTR), owned by a senior former Dintemar officer, retired Rear Admiral Elí­as Ponce Feijóo, with close ties to Vice-President Luis Giampietri (see sidebar).

    A whistleblower alleged that the agents carried out the illegal bugging of the infamous phone calls by a political lobbyist, Rómulo León, between March and September 2008 in relation to the award of oil exploration licences to the tiny Norwegian company, Discover Petroleum. When the transcript of these calls was leaked to the press last October, the resulting scandal forced Del Castillo to resign.

    • Giampietri

    A congressman, Ví­ctor Garcí­a Belaúnde, has accused the navy of planning a coup designed to raise Vice-President Luis Giampietri, a retired vice admiral, to the presidency. Ví­ctor Garcí­a Belaúnde's brother, José Antonio, is Peru's serving foreign minister.

  • ECONOMIC OVERVIEW

    26 February 2009 Hits: 250

    On 16 February Peru announced that real GDP rose 9.84% year-on-year in 2008. Within the region, this is matched by only Uruguay and Panama. Peru is slowing but will still outpace its Andean neighbours this year. The region's traditional fast-growing economies, such as Chile and Venezuela will struggle to get anywhere near trend growth this year. The result was the best since 1994 and caps 10 years of consistently strong economic growth. The economy is slowing down, however. In December 2008 output rose 4.9% over December 2007, slightly below the Reuters' forecast of 5.4%. The consensus forecast is that real GDP growth will slow to 5% year-on-year in 2009.

    Strong domestic demand is the reason for the 2008 growth figure. Peru's growth was likely one of the highest in Latin America: only Uruguay and Panama, yet to report official figures, may post better results.  Annualised growth in Uruguay in the first three quarters of 2008 was a strong 11.8%, driven in large part by the new Botnia pulp mill, as well as the agriculture sector.

    As in Panama (where overall growth is being driven by the project to widen the Canal), the construction industry had a particularly strong year in Peru, with 16.4% annual growth compared with 2007. Commerce, up 12.7%, also did well on the back of increased consumer spending, thanks to cheaper credit.

    Manufacturing rose 8.5% annually, with secondary manufacturing (up 8.7%) doing rather better than the primary sector (up 7.5%). Mining and hydrocarbon production were also both up: mined-metal production rose 7.5%, with hydrocarbon production up 10.2%: natural gas production expanded 26.9% and zinc by 10.9%. Even the volatile agricultural and fishing industries had good years: agricultural output rose 6.7%, with fishing up 6.1%.

    Inflation: In January inflation was 0.11%, down considerably on December 2008's 0.36%. This brings the rate for the past 12 months to 6.53%, much the same as the rate for calendar 2008 of 6.65%.