Peruvian crisis continues

Lima - The spy chief whose fate is crucial to Peru's political crisis has given testimony in a corruption probe but the country…

Lima - The spy chief whose fate is crucial to Peru's political crisis has given testimony in a corruption probe but the country was no closer yesterday who was in control and what would happen next.

A judicial official said Mr Vladimiro Montesinos, the powerbroker widely thought to have the country's military under his thumb and who had not been seen in public for days, had made a preliminary declaration before a state prosecutor.

Local RPP radio said he had testified for more than 2 1/2 hours on Monday. No further details were available.

The whereabouts and fate of Mr Montesinos has gripped Peru since President Fujimori, responding to the release of a video which showed Mr Montesinos bribing an opposition politician in return for parliamentary support, delivered the bombshell announcement on Saturday that he was calling early elections and would not run again.

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Sources close to the government yesterday insisted Mr Fujimori was at his desk as usual and the transition had already begun, with elections to be held next May, permitting a new president to take office on July 28th, Peru's national holiday.