The New York Times
February 2, 2004

Peru Leader Voices 'Disappointment' in Corruption Scandal

LIMA, Peru, Feb. 1 (Reuters) — President Alejandro Toledo of Peru has distanced himself from a corruption scandal that has shaken his government, saying that he
knew nothing about it and that "anyone who is corrupt is my enemy."

But opposition politicians, some of whom have called for him to quit, said his message was not enough to restore credibility in the battered administration, in power for two and a half years.

In a televised address to the nation late Saturday, Mr. Toledo said he was "disappointed" that his friend and former intelligence chief, César Almeyda, had met with Oscar Villanueva, a retired general. General Villanueva was a major figure in the corruption network led by Vladimiro Montesinos, the country's intelligence chief in the 1990's.

A transcript of an audiotape that was described as a conversation between Mr. Almeyda and General Villanueva in December 2001, five months after Mr. Toledo took
office, has been published in Peruvian newspapers. In it, Mr. Almeyda is represented as discussing "putting pressure" on judges and seeing if they could be "bought" to
help General Villanueva.

Mr. Montesinos is in jail facing numerous trials on various charges. But Mr. Toledo said Mr. Montesinos's corruption network "refuses to disappear" and was using the
Almeyda affair as a smoke screen to deflect attention and threaten democracy.

"I express my disappointment over the misuse of power in dealings outside the law," said Mr. Toledo, who was flanked by his cabinet as he spoke. "I am profoundly
pained that César Almeyda acted behind my back, and I regret having placed my confidence in someone who has shown he did not deserve it."

Mr. Toledo took office promising to sweep out the graft that plagued Peru under the former president, Alberto Fujimori, and his major operative, Mr. Montesinos.

But polls indicate that he has lost the support of 9 of 10 Peruvians because of a string of corruption scandals, too little progress on jobs and pay raises, and unpopular tax
increases.

"It is clear this is an isolated incident that does not involve the government," he said. "I reiterate that anyone who is corrupt is my enemy and the enemy of my
government."

José Barba of the opposition Unidad Nacional party said it was not enough to blame Mr. Montesinos's so-called mafia.

"If this government falls, it will be because of its own vices," he told RPP radio.

Mr. Toledo promised unspecified "concrete measures" in the next few days, but made no mention of his coalition partner, the FIM Party, whose leader, Fernando Olivera, has also been implicated.

General Villanueva, who was on the run at the time of the meeting and has since committed suicide, was known as the "cashier" of Mr. Montesinos's network.