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Peru's Garcia Accepts Resignation of Entire Cabinet

Peru's President Alan Garcia accepted the resignation of his entire cabinet amid a corruption investigation into the awarding of oil concessions, Cabinet Chief Jorge del Castillo said. ``The president took the decision of accepting our joint resignation and he will form a new council of ministers,'' del Castillo said at the presidential palace alongside Garcia. He praised the president's record since taking office in July 2006 and said the cabinet would cooperate in any investigation of wrongdoing. (Bloomberg - click here to read complete article by Bill Faries)


Peru's Cabinet resigns amid bribery scandal

Prime Minister Jorge del Castillo and 14 others quit over allegations that bribes were solicited from a European firm in exchange for energy contracts. Peruvian President Alan Garcia accepted the resignation of his entire Cabinet on Friday amid a sweeping bribery scandal that has rocked the government of a major U.S. ally. As the corruption case was unfolding, authorities also said Friday that an attack by leftist rebels on a rural military convoy killed at least 14 soldiers and civilians, the deadliest such strike in years. (LA Times - click here to read complete article by Patrick J. McDonnell)


Peruvian president accepts full cabinet resignation

Peruvian President Alan Garcia accepted Friday the resignation of his entire 13-member cabinet, in a bid to avert an opposition censure resolution in Congress over a oil-industry kickback scandal. "The president has accepted our resignations presented to him on Thursday, and will proceed to reshuffle the cabinet," outgoing prime minister Jorge del Castillo told reporters at government headquarters. The kickback scandal has been roiling since Sunday when nine audio tapes were leaked to news media covering backroom negotiations between government officials, a former congressman and a top oil baron, in a bid-rigging scheme to have Norway's Discover Petroleum win five oil exploration concessions last month. (AFP - click here to read complete article)


Peruvian Stocks Fall Most Since 1990 as Trade Halts

Peru's main stock index fell the most in at least 18 years on concern the deepening credit crisis and slowing economy may choke commodity demand. The Lima General Index's 11 percent plunge prompted the exchange to halt trading. Credicorp Ltd., Peru's largest financial-services company, lost the most in a decade. Minsur, the world's third-largest tin producer, plunged 18 percent after the Bloomberg Base Metals 3- Month Price Commodity Index dropped 7.1 percent. Mining exploration company Panoro Minerals fell the most on the index. (Bloomberg - click here to read complete article by James Attwood)