Peru minister resigns after Discover Petroleum oil auction scandal

Living in Peru
Israel J. Ruiz

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Prime Minister Jorge del Castillo (left) Former Minister Juan Valdivia (right)

© Andina

After firing the president of a state company, President Alan Garcia accepted Monday morning the resignation of the country's Minister of Energy and Mines, Juan Valdivia.

Stating he had nothing to hide and would submit to any investigation, Valdivia announced he would resign.

His resignation came after several high-ranking officials were caught receiving bribes to influence the auction of several oil blocks in the regions of Pisco and Madre de Dios.

Recordings and documents to support the claims were presented by Fernando Rospigliosi on Cuarto Poder, an investigative news show.

Documents and recordings showed that Alberto Quimper, head of the state energy agency Perupetro and Rómulo León, a prominent member of President Alan Garcia's APRA party, made a deal to favor Discover Petroleum of Norway in oil block auctions.

While the president of Peru's state oil and gas company (Petro-Peru), César Gutiérrez has also resigned, Rómulo León has challenged the government to send authorities to his home.

After accepting Valdivia's resignation, Alan Garcia stated the decision had been a rational one, affirming the former minister's honor had not been affected by the scandal.

"I accept the resignation so that it is known that our administration is a politically responsible one," said Garcia.

It is currently not known who will replace Juan Valdivia as the next Minister of Energy.

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# c.schmidt says :
8 October, 2008 [ 17:27 ]

Protesters decry Peru corruption

President Garcia has seen his approval rating fall Thousands of people have taken to the streets in several Peruvian cities to protest against the rising cost of living and low wages. The demonstrations, planned weeks ago, took place just days after a scandal allegedly involving officials taking bribes for oil concessions emerged. Voters say corruption is one of their main concerns about President Alan Garcia's government. Mr Garcia, who took office in 2006, has seen his popularity fall sharply. The demonstrations, organised by the biggest trade union, were called to demand a change in the government's free market policies, which opponents say have failed to improve living standards for many Peruvians. But just days after a scandal allegedly involving kickbacks in return for oil contracts emerged, the protesters also took up the theme of corruption. In the capital, Lima, thousands of workers, including teachers, builders and doctors marched on Congress on Tuesday, calling for the cabinet to step down. The governing party, Apra, is stealing while the people are struggling, they chanted. Trouble broke out when a group that did not appear to be linked to the main protest began throwing stones at the police, who responded with tear gas. Damage control The demonstrations could not have come at a worse time for President Garcia, with opinion polls putting his approval rating at its lowest level since he took office, says the BBC's Dan Collyns in Lima. Mr Garcia ordered an investigation after the alleged scandal surfaced on Sunday, and insisted that the government must be purged of corruption. But the damage control may be too late to save the government's reputation, says our correspondent. On Sunday, a TV station broadcast a tape of a top state oil official and a lobbyist apparently agreeing to favour an oil company in a round of auctions for oil concessions. The taped conversation was allegedly between Alberto Quimper, a executive with the state energy agency, Perupetro, and a prominent lobbyist Romulo Leon. The company, Discover Petroleum of Norway, has said it made payments to Mr Leon and to a law company employing Mr Quimper, but it denied paying any bribes, Reuters reported. "The application process (was) completely open and transparent, and could not possibly have been influenced by any bribes," Discover said in a statement. Peru's energy sector has pushed hard to attract billions of dollars in foreign investment in the country's huge mining industry and its fast-growing oil and gas sector. E-mail this to a friend Printable version

Advertisement SEE ALSO Oil contract scandal shakes Peru 07 Oct 08 |  Americas Peruvian tribes end land protests 21 Aug 08 |  Americas Peru tribe battles oil giant over pollution 24 Mar 08 |  Americas Profile: Alan Garcia 05 Jun 06 |  Americas Country profile: Peru 06 Jun 08 |  Country profiles RELATED INTERNET LINKS Perupetro Petroperu (in Spanish) Peruvian presidency (in Spanish) Aidesep The BBC is not responsible for the content of external internet sites TOP AMERICAS STORIES Central banks cut interest rates US candidates return to campaign Protesters decry Peru corruption | News feeds MOST POPULAR STORIES NOW E-MAILED READ WATCHED/LISTENED Italians 'turn water into wine' 'Glowing' jellyfish grabs Nobel Painkillers 'cut breast cancer' Turning their backs on the ANC Circumcision HIV impact doubted Most popular now, in detail

my add.
there we are again .
Lovely daughter of crime acused ex prime minister cryed a little bit in congress and it was daddies birthday-what a sad day.
but we should take it now with humor like in the good old song "What a diffrence a day made- 24 little hours" 
(her brother was mensioned a little bit in some of the tapes , daddie could relief himself from former enrichment acusations  and as fare as all we do know ac. too Peruvian newspapers the family has closed conections to some strong defendors of what is not exactly defined as legal- but anyhow- was lovely congresskid not also "madrina" from  extramarrige child from mister Garcia-I try to remember-
not locking good here in general for leading party and also for the family of mister Leon and his lovely daughter , tiers wont help this time  -  neither  beauty or strong almost religious outreaching support  from other congress ladies with political experiance and very interisting curriculum vitae
 I cant help myself to think
Who is the "superpadrino" in the latest escandal? it would be interesting to know- i mean really interesting for the country.
But anyhow in times were somhow some people know everything from everyone-surely sooner or later some might have a sharp look into travel tickets from late past or resent times-
When ever mister Garcia did realised round trips- Mister Leon seemed to be very near by - In standing by ?????
Well I am lazy - others will find out sooner or later - on this I am sure.