Peru election shaken by reports of drug money

LIMA, (Reuters) – Peru’s presidential election  race has been rattled by allegations that cash from the drugs  trade has made its way into campaigns and that traffickers are  extending their political influence.

President Alan Garcia, two leading presidential candidates  and senior members of a third candidate’s party have all been  linked by police or local media reports to suspected drug  traffickers or coca growers.

In two of the cases, front-running candidate Alejandro  Toledo and left-wing rival Ollanta Humala have denied any  direct ties to traffickers or coca growers, and dismissed the  reports as tenuous.

But President Alan Garcia, who cannot run for re-election  in the April 10 vote, said he unwittingly accepted cash for his  last campaign from people named in police investigations, and  presidential hopeful Keiko Fujimori said she once took campaign  money from people she says were framed on drug charges.

The United Nations says Peru is the world’s top producer of  coca, used to make cocaine, and although none of the  presidential candidates is accused of working for traffickers  or knowingly taking their money, the funding allegations that  have emerged in recent weeks have caused a public outcry.
They seem to confirm what policy makers and diplomats have  long feared: that traffickers or planters, who for years helped  mayors win elections in rural coca-growing towns, would start  trying to sway politics at the highest levels.

“I think there’s no longer any doubt that drug trafficking  has penetrated politics, and not just in the VRAE and  Huallaga,” Fernando Rospigliosi, a former interior minister,  said in reference to Peru’s main coca-growing valleys.

The controversy reflects a sense that Peru could take one  of two paths: one glorious, the other macabre.

After a decade of rapid economic growth, optimists say Peru  could go on to lift millions out of poverty and emulate the  example of neighboring Chile, one of Latin America’s most  successful and stable countries.

But if it doesn’t do more to rein in the drugs trade, Peru  could be overrun by Mexican cartels or see a surge in violence  like that which destabilized Colombia in the 1980s and is  hurting Mexico now.

The reality is somewhere in between. Peru is unlikely to  become as violent as Mexico or Colombia because its drugs trade  is run by bosses who live abroad, meaning there is less room  for turf battles to spin out of control.

Still, risks of unfettered corruption remain.

“I think it’s possible that drug trafficking will continue  to advance, mostly by breaking down institutions and  politicians charged with combating it,” Rospigliosi said. “We  could get to a very critical situation.”

The United States, according to at least three diplomatic  cables obtained by WikiLeaks, is also concerned that drug  traffickers in Peru could undermine the rule of law by buying  protection from politicians, police, judges and army officers.