Page 17 - MONTT LATIN AMERICAN MAGAZINE, DECEMBER, 2021

Peru: Government Scandals Continue
Despite the fact that the Congress of the Republic gave him a vote of confidence by delegating powers to the Executive branch to legislate
in various economic matters, confidence is reduced day by day in the Government of President Castillo, now due to a possible crime of corruption.
Peru’s Attorney General investigate President Castillo
Political problems continue for President Castillo. The out-sider who impressed the world, and who became Head of Government from a rural teacher, confirmed how complex it is to lead a country that has faced chronic instability for at least four years. The President is unable to stop the scandals after almost six months in power. Five of his ministers left office recently and he personally requested the resignation of four plus his prime minister.
As if all of the above were not enough, now the President is being investigated for alleged corruption.
The National Prosecutor, Zoraida Avalos, opened a preliminary inquiry to President Pedro Castillo for the alleged crime of aggravated influence peddling and collusion by attributing him to have intervened “improperly and indirectly” in two-million-dollar state contracts, and also for the interference in the military promotions.
The Facts
In October, the businesswoman and interest manager Karelim Lopez accompanied executives from two firms to the Government Palace who met with the former secretary general of the presidency, Bruno Pacheco, and with the President himself. Within days, these companies won a tender to build a bridge for about USD $ 60 million, and a state purchase of biodiesel for more than USD $ 18 million. The alarms about the lobbyist were activated in the press last November since she is known for doing business with the State throughout several governments and was a contributor to the electoral campaign of the Popular Force candidate, Keiko Fujimori, in 2016, reported the digital medium IDL-Reporteros. The contract for the purchase of biodiesel from Heaven Petroleum Operator by the state-owned company PetroPerú was concluded on October 21st, three days after the interest manager’s meeting with Castillo.
The document was annulled in December after the scandal that was beginning to be unfold.
The head of the Public Ministry is the only one who can initiate a preliminary investigation of the Head of State while he is in office, collecting evidence and testimonies from other parties and witnesses. She, or whoever succeeds her in April, may continue with the investigation, but not question Castillo while he is President.
Delegation of Powers
On the other hand, Congress approved a law that delegates powers to the Executive Power, to legislate on tax, fiscal, financial and economic reactivation matters, with the aim of contributing to the closing of social gaps. The bill, which was presented in October by the Peruvian Government before Parliament, was approved with 96 votes in favour and 18 against.
According to the newspaper La República, the majority of official votes were against the replacement text of the law approved by Congress, as it cuts a series of requests that the Executive initially made to modify certain tax regimes and allow the Banco de la Nation participate by granting credits in areas where there is little financial supply.
Regarding the changes to the tax regime of the mining sector, the Constitutional Commission of Congress, suggested to the Government to send a bill that aims to this purpose and that has greater consensus, for which reason it was not agreed to give it powers to the Ministry of Economy and Finance to decide these modifications on its own. The Executive expected to collect an additional 12,000 million soles with the reform proposed in its entirety, an amount of which 1,200 million soles corresponded only to the taxes that were sought to increase in the mining sector.
Montt Latin American Magazine p17