Tue, Feb 17, 2004 - Page 7 News List

Embattled president sets cabinet reshuffle in Peru

CREDIBILITY Alejandro Toledo, whose approval ratings stand at 7 percent, brought in seven people seen as independent in an effort to restore his image

REUTERS , LIMA, PERU

Peruvian President Alejandro Toledo on Sunday brought in seven independent figures in a Cabinet reshuffle aimed at restoring his credibility and avoiding early elections.

But opposition politicians and analysts said the changes alone would not save Toledo, who has a public approval rating of 7 percent after two and one-half years in power.

"I don't believe this will calm the political crisis," novelist and former presidential candidate Mario Vargas Llosa told America Television. "Toledo is weak and lacks leadership."

Toledo brought back Pedro Pablo Kuczynski as his economy and finance minister after intense talks with political parties and business groups to form a "consensus Cabinet."

The new team was to be sworn in yesterday.

Its task will be to end the turmoil that has rocked the government after corruption scandals cost four ministers and the vice president their jobs since November.

"What we hope is that it gives a sufficient margin of support to stabilize the government to see it last until 2006," political analyst Eduardo Toche said.

Many ordinary Peruvians say Toledo has failed to turn strong economic growth into jobs and prosperity. They want early elections before the president's term ends in 2006.

Some political parties and commentators have called for Toledo to stay in his post but hand real power to Prime Minister Carlos Ferrero.

"Nothing will change with this make-over," said lawmaker Cesar Zumaeta, a member of the largest opposition party, the American Popular Revolutionary Alliance.

"The situation is going to get more complicated because in the next few weeks there will be very strong social demonstrations. There's an agricultural strike, a transport strike, a coca growers' [meeting], and Toledo will be to blame for failing to change his attitude," he said.

Toledo's Peru Posible party said opposition parties had jumped to criticize the Cabinet even before it had been sworn in.

Toledo's credibility took a blow last month when an audiotape revealed a friend and former adviser discussing bribing judges with a key member of the corruption network spawned by the government of disgraced former president Alberto Fujimori.

Announcing the ministerial changes, Ferrero said Kuczynski, a fund manager widely respected on Wall Street, had been tapped to return to the post he held in Toledo's first Cabinet between July 2001 and July 2002.

Kuczynski took over from another independent figure, Jaime Quijandria.

The president moved him back to his previous job as energy and mines minister. Mining is the motor behind the Andean nation's US$60 billion economy.

Toledo also brought in new ministers of justice, education, health, employment, production and transport.

Seven ministers remain in their posts, including the foreign, interior and defense ministers.

Ferrero told a news conference that only the ministers of housing and agriculture belonged to a political party.

"The number of independents is higher than ever ... We have been very careful that none has any links with political groups," Ferrero told reporters.

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