Peru's PM Otarola Caught in Influence-Peddling Scandal, Forced to Resign

Peruvian Prime Minister Alberto Otárola Peñaranda has resigned amid allegations of influence-peddling to aid a woman who secured government contracts.

Local media reported that the scandal allegedly involving the 57-year-old escalated last week when Peruvian TV broadcaster Canal N aired audio clips of what it said were conversations between Otárola and 25-year-old Yaziré Pinedo, who was reportedly awarded two contracts for work in the defense ministry in 2013 that earned her a total of PES 53,000 ($14,000).

Otárola was the country's defense minister before Peruvian President Dina Boluarte took office in 2022 and promoted him to prime minister.

In the audio clips, Otárola could allegedly be heard declaring his love for Pinedo and asking her to send him her resume.

(Photo: SERGIO LIMA/AFP via Getty Images)

Resignation Due to Making Advances

The remarks appeared to contradict a statement he made prior to their release that mentioned that he only met Pinedo once at a meeting. However, she told Canal N on Tuesday (Mar. 5) that she previously had a brief relationship with Otárola.

Both have said the audio recordings were from conversations in 2021 - before Otárola became a cabinet minister.

Nevertheless, Boluarte demanded Otárola to return early from an official visit to Canada, and upon his return, he announced his resignation.

"Those who have always wanted me out of the government... have not even hesitated to edit an audio with the veiled purpose of tarnishing my image," he said in his resignation speech.

He further accused former prime minister Martín Vizcarra, who said on social media that he "strongly rejected" the "delusional accusations."

According to Peruvian law, all 18 members of Peru's cabinet must follow Otárola and hand in their resignations, but the president has the choice to reselect them again if she wishes.

The incident was the latest in a series of political dramas involving the Peruvian government. Boluarte recently ordered several cabinet reshuffles since taking power as she attempted to quell opposition to her leadership.