Peru's President Kuczynski Refuses to Resign over Corruption Allegations

Corruption is Everywhere - Certainly in Peru

Lawmakers said they have documents that prove Kuczynski was paid $780,000 from Odebrecht while he was a government minister

By Susan McFarland 

President Pedro Pablo Kuczynski of Peru looks on during a meeting with U.S. President Donald Trump in the Oval Office of the White House. Lawmakers on Thursday have called for Kuczynski to step down for his connection with a corruption probe but he refused to resign, denying the allegations. Pool Photo by Olivier Douliery/UPI | License Photo

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UPI -- Despite lawmakers calling President Pedro Pablo Kuczynski to step down for his connection with a corruption probe, he refused to resign on Thursday.

Lawmakers said documents received from Brazil-based Odebrecht prove that before Kuczynski became president, from 2004 to 2007 the company paid $780,000 to a financial-consulting business set up by Kuczynski, the company's sole director.

Kuczynski denies any contact with Odebrecht and refutes claims that he received money from the company while he was a government minister. The president also said he would allow investigators to examine his bank accounts.

During a video statement Thursday, Kuczynski acknowledged owning the company, Westfield Capital, but said a business partner dealt with Odebrecht contracts during that time.

"I'm not going to abdicate my honor, my values or my responsibilities as president of all Peruvians," Kuczynski said. "I won't run. I won't hide. I have no reason to do so."

In a plea deal with the United States Justice Department last year, Odebrecht acknowledged it paid nearly $800 million in bribes to secure infrastructure contracts, including $29 million to Peru during 2005 to 2014. The company was fined $2.6 billion over its role in the scandal.

Lawmakers from the Popular Force party said Kuczynski should immediately step aside; the Broad Front party said Congress should force the president out.

Ecuador's Vice President to be Tried on Bribery Charges

Corruption is Everywhere - Especially in South America

By Ed Adamczyk 

UPI -- Vice President of Ecuador Jorge Glas will face trial on bribery charges, the country's National Court of Justice ruled.

Of course, Brazil is involved

Glas is the highest-ranking politician indicted thus far in a widespread scandal involving Odebrecht, a Brazilian construction company. The U.S. Department of Justice revealed in December that Odebrecht paid $788 million in bribes across 12 Latin American and African countries for preferential treatment in obtaining infrastructure construction projects. Over $33.5 million in bribes were paid in Ecuador, former Odebrecht executive Jose Conceicao Santos admitted in a plea deal. Prosecutors accuse Glas of talking $13.5 million, or about one-third of the money paid in Ecuador. Glas denies the charges.

As part of a plea deal, Jose Conceicao Santos, a former Odebrecht executive in Ecuador, admitted that the company had paid $33.5 million in bribes since 2007 to secure infrastructure contracts in the country.

Glas was arrested on Oct. 2, and has been in custody without bail since that date. He will be tried for illicit association and faces up to five years in prison if convicted.

Twelve others allegedly involved in the corruption scandal are also in custody in Ecuador. Politicians in Mexico, Peru, Panama and Brazil have been identified as involved in the corruption scandal.

With charges mounting against him, President Lenin Moreno relieved Glas of his government duties in August.

Glas has said he is a victim of political and media persecution. In a letter from jail to his children, released to the public immediately after the decision to try him, he wrote, "Your father is imprisoned because he was direct and for always standing up. Your father never flees. Someday you will understand all this. The example of my actions is the best legacy I can give you. Always remember that you never have to resign yourself to threats, hatred, and injustice."