Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Peru Congress approves Vizcarra impeachment motion over leaked tapes

Published 09/11/2020, 02:05 PM
Updated 09/11/2020, 08:45 PM
© Reuters. FILE PHOTO: Peru's President Vizcarra addresses the nation at the government palace in Lima

By Maria Cervantes

LIMA (Reuters) - Peruvian President Martin Vizcarra faced a fresh challenge to his leadership on Friday after Congress approved a motion to start impeachment proceedings against him over leaked audio tapes and alleged ties to a singer involved in a fraud case.

Whether to remove Vizcarra from office for "moral incapacity" is due to be debated and voted upon in the next week, which risks plunging the world's second-largest copper producer further into crisis as it battles one of the worst coronavirus outbreaks globally amid its deepest recession in decades. Vizcarra vowed not to resign.

Fifty-two votes from the 130-member Congress were needed to approve the start of impeachment proceedings, and impeachment itself needs 87 votes in order to remove Vizcarra from office. Friday's vote was 65 in favor, 36 opposed and 24 abstentions.

Lawmakers in Peru's Congress, a mosaic of parties from the left and right with no overall majority, heard recordings of two private conversations between Vizcarra and government officials about meetings with Richard Cisneros, a little-known singer.

Cisneros, who goes as Richard Swing, was awarded government contracts for motivational talks worth 175,400 soles ($49,500), which are being investigated by Congress and Peru's auditor general along with claims of alleged links to the presidency.

Lawmakers said the recordings revealed Vizcarra attempting to downplay his meetings with Cisneros.

Vizcarra took office two years ago after former President Pedro Pablo Kuczynski's resignation over allegations of corruption. Last September, Vizcarra faced down a previous attempt to impeach him for incapacity and dissolved Congress.

He told reporters on Friday that the new challenge represented "a plot to destabilize the government."

"I am not going to resign, I have a commitment to Peru and I will fulfill it until the last day of my mandate," he said.

Presidential elections are due to be held next year and Vizcarra has already said he will not run again.

"We now hope Vizcarra will come to give his justifications," said lawmaker Edgar Alarcon, head of the congressional oversight commission who shared the audios in Congress.

Alarcon added that the date for the debate was being discussed but was expected to be late next week.

Julio Ruiz, an economist specializing in Peru for the Brazilian bank Itaú BBA, said the new turmoil risked adding to jitters from recent "market unfriendly" measures, a reference to Congress passing laws allowing Peruvians to withdraw early from their pensions funds, and a separate recent bid to push out the country's economy minister.

© Reuters. FILE PHOTO: Peru's President Vizcarra addresses the nation at the government palace in Lima

"If this continues to escalate, it could have an effect on recovery," Ruiz said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.