Peru energy minister quits in oil contract scandal
By JERUSALEM POST STAFF
Peru's energy minister and a top state oil company official resigned amid a scandal over alleged kickbacks, while President Alan Garcia on Monday suspended four contracts with the Norwegian oil company involved.
Energy Minister Juan Valdivia Romero and Petroperu president Cesar Gutierrez stepped down after recorded telephone conversations allegedly captured a state oil executive and a member of Garcia's political party discussing payoffs they claimed to receive for steering business to Discover last month.
Both denied any involvement. Gutierrez said he resigned to protect Petroperu and cooperate with an investigation into the company's dealings with Discover.
The Norwegian company also denied any role, with managing director Jostein Kjerstad noting in a statement that Discover has "never known about or been party to any payments like these."
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