LIMA, Oct 11 (Reuters) - A leftist provincial governor said on Saturday he has accepted an offer to become Peru's new prime minister, after President Alan Garcia fired his entire cabinet over a widening corruption scandal involving oil and gas contracts.
'Unfortunately I've got ahead of myself, it is surely the president who will have to make the announcement,' Yehude Simon, governor of the northern province of Lambayeque, told Peru's RPP radio when asked if he would take the job.
By picking Simon, jailed a decade ago for his links to a guerrilla group, Garcia may be trying to place greater emphasis on social programs, neutralize critics on the left, and regain support in the provinces, where he is especially unpopular.
Garcia's approval rating has fallen to 19 percent, an all-time low for his current term, as critics say surging economic growth of 9 percent a year has failed to lift millions out of poverty.
He had faced calls from opposition leaders to reshuffle his cabinet after audio tapes emerged that linked members of his APRA party to a plan to steer lucrative petroleum contracts to favored bidders in exchange for bribes.
Former prime minister Jorge del Castillo, Garcia's right-hand man, was mentioned in the taped conversations as someone who would provide favors in a plan to rig auctions of oil and gas concessions.
Del Castillo also had lengthy meetings with APRA party members who were working as lobbyists and involved in the auctions, but has denied any wrongdoing.
Simon said Finance Minister Luis Valdivieso, a former IMF official who recently joined Garcia's administration, would stay on, as would Foreign Minister Jose Antonio Garcia Belaunde and Foreign Trade Minister Mercedes Araoz.
'I want to build a great alliance, friendship between sectors of the left and the government, and I have no doubt that businessmen of the so-called right will also draw near,' Simon said. 'The country needs a truce.'
Before the wholesale cabinet sacking, former mines and energy minister, Juan Valdivia, had already been forced to quit, along with two other energy officials.
Peru's Congress has voted to investigate all oil and gas concessions granted since 2006. It will scrutinize dozens of contracts signed between Peru and foreign oil companies for signs of irregularities in the country's growing petroleum sector.
Garcia is a former leftist whose first term as president in the 1980s ended in economic disaster. He has since become a champion of mainstream economic policies and was elected to lead Peru for a second time in 2006.
Voters cite corruption as one of their top complaints about Garcia's administration.
He may fall further in polls as Peru's economy slows because of the global financial crisis, the corruption scandal lingers and the army tries to control violent groups that traffic drugs in Peru, the world's No. 2 coca grower.
(With reporting by Terry Wade. Editing by Simon Gardner) Keywords: PERU POLITICS/ tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
'Unfortunately I've got ahead of myself, it is surely the president who will have to make the announcement,' Yehude Simon, governor of the northern province of Lambayeque, told Peru's RPP radio when asked if he would take the job.
By picking Simon, jailed a decade ago for his links to a guerrilla group, Garcia may be trying to place greater emphasis on social programs, neutralize critics on the left, and regain support in the provinces, where he is especially unpopular.
Garcia's approval rating has fallen to 19 percent, an all-time low for his current term, as critics say surging economic growth of 9 percent a year has failed to lift millions out of poverty.
He had faced calls from opposition leaders to reshuffle his cabinet after audio tapes emerged that linked members of his APRA party to a plan to steer lucrative petroleum contracts to favored bidders in exchange for bribes.
Former prime minister Jorge del Castillo, Garcia's right-hand man, was mentioned in the taped conversations as someone who would provide favors in a plan to rig auctions of oil and gas concessions.
Del Castillo also had lengthy meetings with APRA party members who were working as lobbyists and involved in the auctions, but has denied any wrongdoing.
Simon said Finance Minister Luis Valdivieso, a former IMF official who recently joined Garcia's administration, would stay on, as would Foreign Minister Jose Antonio Garcia Belaunde and Foreign Trade Minister Mercedes Araoz.
'I want to build a great alliance, friendship between sectors of the left and the government, and I have no doubt that businessmen of the so-called right will also draw near,' Simon said. 'The country needs a truce.'
Before the wholesale cabinet sacking, former mines and energy minister, Juan Valdivia, had already been forced to quit, along with two other energy officials.
Peru's Congress has voted to investigate all oil and gas concessions granted since 2006. It will scrutinize dozens of contracts signed between Peru and foreign oil companies for signs of irregularities in the country's growing petroleum sector.
Garcia is a former leftist whose first term as president in the 1980s ended in economic disaster. He has since become a champion of mainstream economic policies and was elected to lead Peru for a second time in 2006.
Voters cite corruption as one of their top complaints about Garcia's administration.
He may fall further in polls as Peru's economy slows because of the global financial crisis, the corruption scandal lingers and the army tries to control violent groups that traffic drugs in Peru, the world's No. 2 coca grower.
(With reporting by Terry Wade. Editing by Simon Gardner) Keywords: PERU POLITICS/ tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.