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Peru's cabinet offers to resign over scandal

Associated Press

Sixteen Cabinet ministers offered their resignations to Peruvian President Alan García on Thursday in the wake of an oil-kickback scandal.

Opposition lawmakers had called for the officials to step down, but it is not known if García will accept the offer, which comes just days after the resignations of Peru's energy minister and the president of the state-run oil company.

On Monday, García suspended five oil contracts with Norwegian oil company Discover Petroleum after audiotapes surfaced that allegedly captured two members of his political party -- state oil executive Alberto Quimper and Romulo Leon, agricultural minister during García's first administration -- discussing payoffs for steering business toward the company.

The recorded telephone conversations were broadcast by a TV news program Sunday.

Quimper was fired from his post Monday and arrested late Tuesday. An arrest warrant has been issued for Leon, whose whereabouts were unknown.

New tapes surfaced on Tuesday and Wednesday in which Leon allegedly told Discover representative Fortunato Canaan that Cabinet Chief Jorge del Castillo, García's right-hand man, would be open to supporting Discover's bid to land oil contracts in Peru.

Del Castillo denies the claim.

The scandal also has claimed the posts of Energy Minister Juan Valdivia and state oil company President Cesar Gutierrez, both of whom submitted their resignations late Sunday.

Discover denies any role in the scandal. Managing director Jostein Kjerstad insisted in a statement issued Monday that the company has ``never known about or been party to any payments like these.''

The Cabinet members voluntarily offered up their positions with ''an absolutely clean and calm conscience,'' del Castillo said Thursday after the ministers arrived together at the government palace.

Congressman Luis Galarreta of the opposition National Unity party called the move, unsolicited by the president, ''arrogant'' and members of several opposition parties walked out in protest.

Peru's congress is now investigating the Sept. 10 public auction that resulted in Discover winning five oil exploration contracts.

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