Peru President Accuses Head of Congress of Plot to Oust Him

(Bloomberg) -- Peruvian President Martin Vizcarra accused the head of congress of plotting his removal from power, going on the offensive after a push to impeach him lost the support of key opposition figures.

Congress chief Manuel Merino, first in line to replace Vizcarra, made contact with military commanders and planned out a cabinet to assume government, the president said in a televised speech on Monday.

“That’s called conspiracy,” he said, warning that “dark forces” are seeking to destabilize the country. Vizcarra said he believes “true democratic forces” will protect his mandate.

The president looked poised to survive impeachment proceedings after some opposition lawmakers said they would back away from their initial plan to avoid escalating a political crisis amid a devastating pandemic.

The fate of his finance minister was less clear, however. Maria Antonieta Alva could be forced to resign if lawmakers approve a separate motion against her, alleging she didn’t do enough to prevent the economic slump resulting from the coronavirus. Debate on Alva’s censure motion was scheduled to start on Monday but lawmakers have so far avoided it. They have up to Sept. 19 to put it to a vote.

The political instability risks weighing on a nation already battered by Covid-19. With the world’s highest per-capita deaths from the coronavirus, Peru’s gross domestic product shrank by 30% in the second quarter, the worst slump of any major economy. The Peruvian sol gained 0.4% against the dollar at close of trading in Lima, after falling the most in three months on Friday.

“While his opponents do not yet seem to have enough support to unseat him, President Vizcarra’s position seems likely to be weakened and the increased political uncertainty will likely imply a slower recovery of the economy from the COVID-19 shock,” wrote Barclays Plc economist Alejandro Arreaza in a note Monday.

Calling the Military

Congressional leaders who accuse Vizcarra of trying to obstruct a graft probe said they still want him investigated but would no longer support his ouster after allegations Marino may have sought the support of the armed forces stirred memories of the country’s history of military coups.

Merino has denied the allegations, saying he spoke with the head of the navy but never discussed impeachment.

While lawmakers are still scheduled to vote on Vizcarra’s impeachment by the end of the week, the government on Monday sought a court injunction to halt the process.

At least two political parties have announced they will withdraw support for the motion against Vizcarra, with Daniel Urresti, the spokesman for We Can, criticizing “dark maneuvers” by Merino. Alliance For Progress founder Cesar Acuna, whose party provided about a third of the votes in favor of starting impeachment proceedings, said on Twitter that the process would worsen the political crisis.

Power Struggles

If Vizcarra is impeached, the head of congress would replace him until the next general election, which is due in April. Vizcarra has said he won’t seek another term.

Vizcarra is the second Peruvian leader facing impeachment proceedings in less than three years. His predecessor, Pedro Pablo Kuczynski, resigned after an opposition lawmaker released videos that showed his allies apparently negotiating votes to stave off his ouster. Two other former presidents are under investigation for graft and another one is in prison.

Since replacing Kuczynski in 2018, Vizcarra, 57, has tried to overhaul the nation’s judicial and political systems, frequently clashing with lawmakers in the process. He dissolved the previous legislature last year.

Prosecutors and lawmakers this year began probing alleged irregularities in the government’s hiring of a little-known singer to give motivational talks at the Culture Ministry. Richard Cisneros, the singer in question, is alleged to have used contacts in the presidential palace to obtain contracts totaling about $50,000.

On Thursday morning, lawmakers heard tapes of Vizcarra appearing to speak to officials about Cisneros’ visits to the presidential palace. Less than 12 hours later, they presented a motion to unseat him.

More tapes were leaked to the press on Sunday, in which a palace official appears to suggest Vizcarra exerted influence over an anti-corruption prosecutor. In his address, the president denied the report and said he’s willing to speak to prosecutors, even though he’s not legally obliged to do so until his mandate ends.

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