April 10, 2006

Humala widens lead in Peru vote

By Kevin Gray

LIMA, Peru (Reuters) - Nationalist Ollanta Humala, who has
rallied the poor but angered the rich with pledges to
redistribute Peru's wealth, led the presidential election on
Monday and was likely headed to a runoff.

With more than 72 percent of the vote counted, Humala, a
43-year-old former army commander and ally of leftist
Venezuelan President Hugo Chavez, had 29.46 percent, election
officials said.

Two other candidates were locked in a close race to
determine who would face Humala in a second round since no
candidate appeared on pace to capture more than 50 percent.

Left-of-center former President Alan Garcia trailed Humala
with 24.98 percent, moving ahead of Lourdes Flores, a
pro-business conservative, with 24.96 percent. As the vote
counting continued, Garcia picked up support from rural areas
while Flores, whose stronghold is Lima, struggled to gain a

"I consider myself the winner," Humala told foreign
reporters as electoral officials tallied votes from Sunday's
election. "I hope the traditional political forces take note."

Investors were watching closely to see whether the business
favorite Flores or the leftist Garcia would reach the runoff.

"We still have about 33 percent of the votes to be counted
and a lot of these votes come more from remote areas," said
Vitali Meschoulam, a strategist with HSBC Securities. "These
votes will probably favor either Humala or Garcia," he said.

Pre-election polls showed Humala would likely lose to
Flores in a runoff but would face a tight race with Garcia.

Election authorities said it could take up to 20 days to
determine who had finished second. Only the top two candidates
go to the run-off, which must take place within 30 days after
the final official result is announced. A close race also could
lead to legal challenges of the ballot count.

Humala, who led a failed coup in 2000 and has been accused
of human rights abuses as a soldier, also pledges to
industrialize Peru's production of coca, the basis for cocaine.
If elected, he would be the latest in a string of Latin
American leftists to come to power challenging U.S. policies
like coca eradication.

Peru is the world's No. 2 cocaine producer after Colombia.


Humala, who was harassed by thousands of people as he voted
in a middle-class area on Sunday, urged Peruvians not to be
afraid of a Humala presidency.

"People have to realize, we don't want any kind of
traumatic shock for Peru," he said. "We're not going to
expropriate companies or property. We just don't want people to
be afraid of change."

Most popular among the long-neglected poor, Humala pledged
to service Peru's $30 billion debt if elected and keep a small
fiscal deficit despite his generous welfare plans.

"Humala is our voice, the voice of the people," said Elvis
Orosco, a construction worker in Lima. "I'm praying he'll be

The business community fears a second round between Humala
and Garcia, who presided over economic collapse during his
1985-1990 rule. Garcia, 56, saw his backing rise in the final
pre-election polls, as support ebbed for Flores, 46, a lawyer
who has struggled to connect with the poor.

"I'm really holding out for Alan. He's the only one who can
make a difference for Peru," said Octavio Pinedo, who is

Flores, who topped polls only months ago, has played up her
potential role as Peru's first female leader in a country where
women are perceived as more honest.

Whoever is ultimately elected president will face a
fragmented Congress in which no party has a majority, election
results showed, making it harder to push through legislation.

(Additional reporting by Robin Emmott)