Peru trade minister quits after scandal

Peru's foreign trade minister quit today after a scandal sparked by media accusations he got his alleged girlfriend and members…

Peru's foreign trade minister quit today after a scandal sparked by media accusations he got his alleged girlfriend and members of her family government jobs.

Mr Raul Diez Canseco has strenuously denied wrongdoing and said in a resignation speech to reporters that the allegations against him were designed to destabilize the government.

Although his resignation as tourism and foreign trade minister was irrevocable, Mr Diez Canseco said he was staying on as first vice president. That means he steps in for President Alejandro Toledo if he is out of the country, and would take over if Toledo were fired, quit or died. According to the constitution, a vice president cannot resign that post.

"In the last few days I have been the object of a media campaign full of half truths that has gone beyond all the boundaries of ethics," Mr Diez Canseco said.

READ MORE

He said he was quitting "with dignity, and my head held high." He was replaced by his deputy, Alfredo Ferrero, who was sworn in soon after Mr Diez Canseco quit.

The opposition newspaper Correo last week accused Mr Diez Canseco of hiring his alleged girlfriend for a job it said she was not qualified for, and getting two of her cousins well-paid jobs. It also said Mr Diez Canseco had favored her father's company by signing a tax exoneration law. Mr Diez Canseco has denied both that the woman is his girlfriend and favoritism towards her family.

He said he would be quizzed by a congressional commission tomorrow in order to "establish the truth."