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Peru Cabinet Offers to Quit Over Oil Flap

Posted on: Friday, 10 October 2008, 12:10 CDT

Peruvian cabinet ministers were reported ready to resign Friday over an alleged oil concession scandal, officials said,

Prime Minister Jorge del Castillo said they would leave their fate up to President Alan Garcia Perez, who has ordered an investigation.

The move also follows a frustrated attempt by the cabinet to explain its decisions before parliament, which has an impeachment motion pending against del Castillo.

Energy and Mines Minister Juan Valdivia has already resigned.

On Sunday, a TV station broadcast what it claimed was a recording of an executive in the state oil company, Petroperu, and a prominent lobbyist discussing payments to help a Norwegian oil company win contracts.

The company, Discover, which was awarded contracts to explore oil in Peru, denies the allegations.

Petroperu's president, Cesar Gutierrez, has also resigned, although he has denied any involvement in the scandal.


Source: United Press International

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