IBOV 177,866 ▲ 2.97% IPSA 11,057 ▲ 0.28% IPC MEX 66,496 ▲ 0.59% MERVAL 3,280,224 ▲ 2.43% COLCAP 2,307.67 ▲ 0.65% BVL PERÚ 56,194.27 ▲ 1.29% USD/BRL 5.11 — 0.00% USD/MXN17.47▲ 0.01% USD/CLP923.90▼ 0.41% USD/COP3,237▼ 0.27% USD/PEN3.41▲ 0.44% USD/ARS1,487▼ 0.03% USD/UYU40.22▲ 1.37% USD/PYG6,055▲ 1.45% USD/BOB10.14▲ 4.01% USD/DOP58.61▲ 0.22% USD/CRC448.82▲ 1.41% USD/GTQ7.63▲ 2.31% USD/HNL26.72▲ 0.09% USD/NIO 36.62 — 0.00% USD/VES719.54▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD158.09▲ 0.40% USD/TTD6.75▲ 1.44% EUR/BRL5.84▲ 0.33% BRENT 77.33 ▲ 1.74% WTI 72.66 ▲ 1.75% IRON ORE 161.91 — — COPPER 6.27 ▲ 0.52% GOLD 4,081 ▼ 0.57% SILVER 59.00 ▼ 1.36% SOY 1,196 ▼ 0.06% CORN 465.50 ▲ 6.28% WHEAT 637.50 ▲ 0.87% COFFEE 331.85 ▼ 3.25% SUGAR 14.68 ▼ 1.34% ORANGE JUICE 143.25 ▼ 4.44% COTTON 81.35 ▲ 1.79% COCOA 5,596 ▼ 5.46% BEEF 230.55 ▼ 2.00% CATTLE 354.60 ▼ 0.44% LITHIUM 72.32 ▼ 0.69% PETR4 39.65 ▲ 1.12% VALE3 74.18 ▲ 1.41% ITUB4 44.30 ▲ 4.02% BBDC4 18.86 ▲ 4.78% ABEV3 15.82 ▲ 0.64% BBAS3 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0.57% SILVER 59.00 ▼ 1.36% SOY 1,196 ▼ 0.06% CORN 465.50 ▲ 6.28% WHEAT 637.50 ▲ 0.87% COFFEE 331.85 ▼ 3.25% SUGAR 14.68 ▼ 1.34% ORANGE JUICE 143.25 ▼ 4.44% COTTON 81.35 ▲ 1.79% COCOA 5,596 ▼ 5.46% BEEF 230.55 ▼ 2.00% CATTLE 354.60 ▼ 0.44% LITHIUM 72.32 ▼ 0.69% PETR4 39.65 ▲ 1.12% VALE3 74.18 ▲ 1.41% ITUB4 44.30 ▲ 4.02% BBDC4 18.86 ▲ 4.78% ABEV3 15.82 ▲ 0.64% BBAS3 20.58 ▲ 2.90% B3SA3 15.42 ▲ 4.26% WEGE3 46.51 ▲ 1.68% PRIO3 55.45 ▼ 0.29% SUZB3 41.55 ▲ 1.27% RENT3 41.10 ▲ 4.31% AZZA3 19.10 ▲ 3.47% CSAN3 4.07 ▲ 5.44% RAIZ4 0.35 ▼ 5.41% PCAR3 2.73 ▼ 1.09% GMAT3 3.97 ▲ 1.02% PSSA3 54.97 ▲ 3.04% CVCB3 1.25 — 0.00% POSI3 3.97 ▲ 3.12% SLCE3 14.02 ▲ 1.67% NATU3 8.68 ▲ 2.60% BRKM5 6.63 ▲ 4.25% RANI3 8.01 ▲ 1.91% CSNA3 5.18 ▲ 7.92% CMIN3 5.23 ▲ 8.28% USIM5 8.45 ▲ 1.20% GGBR4 23.01 ▲ 2.36% ENEV3 27.55 ▲ 5.15% CPFE3 47.87 ▲ 3.41% CMIG4 11.38 ▲ 2.71% EQTL3 40.91 ▲ 3.54% LREN3 14.62 ▲ 3.32% VIVT3 35.75 ▲ 3.62% RAIL3 14.36 ▲ 4.44% KLABIN 17.54 ▲ 0.80% RAIA DROGASIL 18.77 ▲ 3.53% RDOR3 36.02 ▲ 2.48% HAPV3 10.60 ▲ 5.26% FLRY3 16.42 ▲ 4.25% SMTO3 16.37 ▲ 1.99% UGPA3 30.71 ▲ 2.03% VBBR3 33.00 ▲ 2.80% BBSE3 40.35 ▲ 2.72% BPAC11 58.73 ▲ 5.48% CURY3 34.21 ▲ 4.62% AERI3 2.09 ▲ 1.46% VIVARA 23.53 ▲ 4.21% COMPASS 25.50 ▲ 3.32% VAMOS 3.06 ▲ 3.38% SANB11 27.62 ▲ 5.22% ASAI3 8.87 ▲ 4.85% SBSP3 31.11 ▲ 3.70% WALMEX 49.31 ▲ 0.59% GMEXICO 198.62 ▲ 1.68% FEMSA 223.20 ▲ 0.37% CEMEX 21.82 ▲ 0.51% GFNORTE 186.51 ▲ 0.63% BIMBO 56.06 ▲ 0.23% TELEVISA 9.74 ▲ 2.63% AMX 22.70 ▲ 0.27% GAP 412.01 ▼ 0.41% ASUR 285.12 ▲ 0.53% OMA 235.73 ▼ 0.95% KOF 182.08 ▲ 0.65% GRUMA 282.99 ▲ 0.14% KIMBER 38.13 ▼ 0.81% SQM-B 67,750 ▼ 1.95% COPEC 6,139 ▲ 1.98% BSANTANDER 79.00 ▲ 1.94% FALABELLA 5,905 ▲ 0.92% ENELAM 85.40 ▲ 1.47% CENCOSUD 2,045 ▼ 0.55% CMPC 1,109 ▲ 1.32% BANCO CHILE 188.88 ▲ 1.01% LATAM AIR 26.26 ▼ 0.53% YPF 74,450 ▼ 1.75% GGAL 8,350 ▲ 5.96% PAMPA 5,185 ▼ 0.38% TXAR 671.00 ▲ 0.98% ALUAR 978.00 ▲ 0.98% TGS 9,610 ▲ 3.22% CEPU 2,405 ▲ 3.89% MIRGOR 17,375 ▲ 1.02% COME 45.90 ▲ 1.06% LOMA NEGRA 3,583 ▲ 2.43% BYMA 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Brazil Business - Brazil

Peru’s President Tries to Clean up Tangled Political System with Elections January 26th

By · January 26, 2020 · 4 min read

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RIO DE JANEIRO, BRAZIL – The corruption scandal surrounding the Brazilian construction company Odebrecht has triggered a political earthquake in Peru. President Vizcarra is stamping his authority on the fight against corruption. When the Peruvian parliament did not support him, he called new elections.

Consider four individuals. One shot himself as the police stood outside his door to arrest him. Another is in custody in the USA, awaiting extradition. A third is under house arrest. A fourth faces criminal charges and has only limited freedom of movement.

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President Vizcarra is stamping his authority on the fight against corruption. When the Peruvian parliament did not support him, he called new elections.
President Vizcarra is stamping his authority on the fight against corruption. When the Peruvian parliament did not support him, he called new elections. (Photo internet reproduction)
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The four individuals have two things in common: (1) they were once president of Peru; and (2) they are suspected of involvement in the corruption surrounding Brazilian construction giant Odebrecht. The bribery scandal has sparked a political landslide in Peru, unlike any other country.

Odebrecht triggers political earthquake

The list is long: Even opposition leader Keiko Fujimori, who was released from a 13-month sentence in November, is accused of accepting illegal campaign donations from the construction company. Investigations are also underway against former governors, mayors, ministers and members of parliament. Over the years, Odebrecht has bribed politicians and officials with figures amounting to US$785 million (R$3.1 billion)  in numerous Latin American countries, in order to obtain public construction contracts.

According to Marcelo Odebrecht, the company’s managing director at the time, US$29 million were paid out in Peru alone. Of the last five Peruvian heads of state, only Martín Vizcarra, the current president, has clean hands in the affair. This lends him credibility as a consistent anti-corruption campaigner.

Vizcarra only holds the presidency because his predecessor, Pedro Pablo Kuczynski, stumbled after evidence of corruption in March 2018, and Vizcarra, his vice president, succeeded him in office. From the outset, the non-party Vizcarra has made it his mission to clean up the tangled web of political wrongdoing with a comprehensive reform agenda.

But he quickly realized how difficult it was going to be. The opposition party, which holds the majority in Congress, continually blocked his plans. He did not let this deter him, however.

Over the years, Odebrecht has bribed politicians and officials with figures amounting to US$785 million (R$3.1 billion)  in numerous Latin American countries, in order to obtain public construction contracts.
Over the years, Odebrecht has bribed politicians and officials with figures amounting to US$785 million (R$3.1 billion)  in numerous Latin American countries, in order to obtain public construction contracts. (Photo internet reproduction)

The 56-year-old accuses MPs of torpedoing his efforts in the fight against corruption, in order to protect their own interests. For months now, a power struggle has been raging between the President and parliament, which reached a new peak in autumn.

Parliament stands at odds

This was triggered by a congressional decision regarding the appointment of six of the eleven judges at the Constitutional Tribunal. The deputies tried to appoint hand-picked candidates with political ties to the opposition. Vizcarra criticised the plan, demanded procedural transparency, and gave Congress an ultimatum: if Congress did not comply with his demands, he would dissolve Parliament.

Congress did not acknowledge what Vizcarra considered a vote of no confidence. It immediately dissolved and Vizcarra called new parliamentary elections on 26 January. The ballot should actually have taken place in April 2021, when the next presidential elections will also be held.

The opposition dismissed the move as unconstitutional, suspended Vizcarra from his post and appointed Vice-President Mercedes Aráoz as interim head of state. However, the military and police immediately backed Vizcarra, which is why Aráoz resigned after only one day. The dissolution of parliament was also met with popular approval. In several cities throughout Peru, government supporters took to the streets cheering.

Vizcarra wants to take the new elections as an opportunity to clean up Peru’s political landscape. Several criminal proceedings are currently underway against members of the opposition party, Voluntad, notorious in Congress for corruption.

Since these members enjoy parliamentary immunity, many of the trials have been put on hold. The appointment of judges who are sympathetic toward them, and who would also be in charge of deciding whether to remove their immunity, would have been entirely in their interests.

Over the years, Odebrecht has bribed politicians and officials with figures amounting to US$785 million (R$3.1 billion)  in numerous Latin American countries, in order to obtain public construction contracts. (Photo internet reproduction)
Over the years, Odebrecht has bribed politicians and officials with figures amounting to US$785 million (R$3.1 billion)  in numerous Latin American countries, in order to obtain public construction contracts. (Photo internet reproduction)

This manoeuvre failed. In addition, the cases of the suspected Members of Parliament will be reopened by the judiciary if they are not re-elected at the end of the month.

Will re-election strike a blow for liberty? Despite broad support for Vizcarra’s dissolution of parliament, the action has also provoked criticism in certain circles. But Peru’s constitutional court ruled that Vizcarra’s dissolution of parliament was legal. Whether the new elections will lead to the president getting his reforms off the ground, still remains to be seen.

In a speech in mid-December, Vizcarra called on Peruvians to elect candidates on January 26th who would support his agenda in the fight against corruption. The high number of undecided voters makes the outcome of the election unpredictable.

However, experts believe that moderate forces will dominate in the end. Whether they will support Vizcarra in his reform plans is not a given. If the new Congress backs them, experts agree that he could go down in Peru’s history books as a consistent anti-corruption campaigner.

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