Vice President Investigated for Corruption

Earlier this month Attorney General José Peláez initiated an investigation into Vice President Omar Chehade following accusations he had used political influence to benefit a private company.

The allegations followed an article by IDL Reporteros, a non-profit investigative outfit, and were subsequently confirmed by recently dismissed police Chief Eduardo Arteta Izarnótegui.

Arteta alleges Chehade sought to influence the outcome of a long-running dispute over the ownership of the Andahuasi sugar refinery in Lima. Though the Wong Group has been majority owner of the plant since 2009, Andahuasi workers, backed by a minority shareholder, have blocked the group from entering its premises.

The former police commander claims that he, Vice President Chehade, his brother Miguel and other police chiefs all discussed the dispute at an informal meeting in a Lima restaurant. According to Arteta, the vice president excused himself from the table while his brother tried to convince the police chiefs to evict the Andahuasi workers and allow the Wongs to take control.

Chehade admits he met with the police officials, but emphatically denies that the eviction was ever discussed. He claims that Arteta made the allegations only as a result of his dismissal earlier this month during a purge of ‘corrupt’ police officers. Of note, the two other police officials present at the meeting, General Raúl Salazar and Abel Gamarra Malpartida, both corroborate the vice president’s version of events.

The above allegations were followed days later by further claims of Chehade’s involvement in influence peddling. TV programme Cuarto Poder reported that Chehade tried to persuade outgoing Transport Minister Enrique Cornejo to grant a large transport contract to Brazilian Firm Andrade Gutiérrez shortly after the elections. As the meeting was brokered by Prime Minister Salomon Lerner Guitis questions were raised over his involvement in any possible wrongdoing.

In response to the accusations, politicians from opposition Fuerza 2011, Concertación Parlamentaria and Alianza por el Gran Cambio parties have called for Chehade to withdraw from an anti-corruption commission formed last month.

 

Humala Sacks 30 Police Chiefs

Thirty senior police officials were forced into retirement by the government in late October as part of efforts to stamp out corruption in the force.

Two-thirds of Peru’s police commanders were removed, including prominent figures such as counter-narcotics commander General Raúl Becerra.

In recent opinion polls half of respondents stated the police force was the most corrupt institution in the country. Though some element of restructuring was anticipated, its eventual scale surprised many.

A number of those dismissed had faced allegations of corruption. However, at least one of the dismissed commanders claimed he had never been linked to any wrongdoing. The Nation Association of Police Commanders denounced the move, suggesting it was both ill-conceived and politically motivated.

Vice President Omar Chehade dismissed such complaints, declaring no decision had been taken on any officer without first conducting a “rigorous evaluation” of their professional history.

The dismissals were part of wider efforts to restructure the force, which will see total numbers of police officers drop by nearly 30%.

A similar shake-up of the diplomatic service was carried out earlier this month, when fifteen ambassadors were removed from their posts following a reduction in the maximum length of service. Those dismissed are now considering appealing to the Constitutional Court.

 

Plans for Hydroelectric Project Scrapped

On October 14 the Ministry for Energy and Mining rejected an appeal by Brazilian consortium EGASUR against the cancellation of a hydroelectric power plant in southern Peru.

The £2.5 bn (US$ 4bn) project, planned for the Inambari river in Puno province, had proved highly controversial as it involved the flooding of approximately 150 square miles of territory. Critics feared this would endanger the Bahuaja Sonene National Park and would lead to the displacement of 60 communities living nearby.

The ministry eventually cancelled the project as it deemed EGASUR had not presented the findings of its environmental impact assessment in a public forum.

Olga Cutipa, leader of the local organisation Frente de Defensa de San Gabán, applauded the decision, saying it vindicated community claims that EGASUR had failed to comply with investment legislation.

The firm is able to appeal the decision, though it is not yet known whether it will chose to do so. EGASUR representatives have so far declined to comment on the project’s cancellation.

 

Renewed Conflict Over Yanacocha Gold Mine

On October 14 around 200 demonstrators from Cajamarca’s Encañada district blocked transport arteries during protests against mining firm Yanacocha. During the blockade, demonstrators were reported to have set fire to several pieces of the firm’s equipment, including a bulldozer and dump trucks.

According to Encañada Mayor Jorge Vásquez the protests relate to a planned expansion of the gold mine, the largest of its kind in Latin America, which would increase strain on nearby water resources.

Though the firm has pledged to create two reservoirs to replace water which would be diverted by the project, locals fear this recycled water would be contaminated. Vásquez reports that such pollution could endanger the livelihoods of many in the area who depend on agriculture and animal husbandry to survive.

As protests began, Yanacocha officials sought to dismiss the unrest as an attempt to pressure the firm into signing an agreement to provide over £50m (US$ 70m) of investment for the community. As such, the company, co-owned by American firm Newmont and Peru’s Buenaventura, declared they would not negotiate while the blockade was in place.

Three days later, and following intervention by the central government, protestors agreed to suspend the blockade and participate in three-way talks with the firm and state officials. Vásquez warned however, that demonstrations would resume if no agreement was reached.

The Yanacocha protests are only the latest example of the ongoing problem of social conflict in Peru. According to a September report from the Office of the Human Rights Ombudsman there are currently 215 active social conflicts in the country; approximately the same number as when Humala assumed office in July.

 

Women’s Minister Survives Calls for Resignation

Efforts by opposition parties to force the resignation of Women’s Minister Aida García Naranjo were effectively defeated on October 13.

A motion to censure the minister, proposed by conservative alliances Alianza por el Futuro and Concertación Parlamentaria, was defeated by 54 to 28, with 14 abstentions. Had it been successful it would have obliged García Naranjo to step down from her government post.

Opposition politicians argued that the minister should be dismissed following the deaths of three children – and the hospitalisations of 89 more – after eating contaminated food in Cajamarca late last month.

The food had been provided as part of the government’s National Food Assistance Programme (known by its Spanish language acronym PRONAA) and was later found to contain traces of pesticide.

According to García Naranjo it was not the PRONAA supplies, but rather the containers used locally during preparation, which were contaminated. The government subsequently announced an overhaul of the programme with greater emphasis placed on training local staff and teachers how to prepare food safely.

In late October the government confirmed management of the PRONAA programme would gradually be transferred to the Ministry of Development and Social Inclusion under Carolina Trivelli. The newly created ministry will be Humala’s flagship department for social policy.