President Kuczynski in his worst hour

PERU - In Brief 15 Dec 2017 by Roberto Abusada

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The worst scenario envisaged in our Report of four days ago appears to be unfolding at the moment, with allegations that President Pedro Pablo Kuczynski provided consulting services to the Brazilian firm Odebrecht through First Capital, a firm that belongs to him. These allegations have been strongly denied by Kuczynski, arguing that he was not a member of First Capital while holding public office during President Alejandro Toledo’s tenure. The local head of Odebrecht, Mauricio Cruz, has given detailed information regarding payments made to First Capital. Kuczynski is now saying that it is owned by an ex-business associate Gerardo Sepúlveda, and is admitting that the only consulting work he has done for Odebrecht is one related to the financing of an irrigation project done in September 2010, four years after leaving his post as Prime Minister. Odebrecht also revealed that other payments were made to Westfield Capital, yet another firm owned by Kuczynski, and it appears that these were made while he was holding a public post. It is being argued that these corresponded to expenditures related to work done prior to taking the public job. Today 27 congressmen, members of several parties, signed a motion requesting the vacancy of the presidency on the grounds of “moral incapacity”, saying that he has been lying. In Peru, “moral incapacity” can be invoked when it is deemed that the conduct of the President, without necessarily being illegal, seriously tarnishes the dignity of the presidential office. We think that the purpose of this congressional action is to force the resignation of Kuczynski, who has said he will not voluntary step down. There are enough votes (minimum o...