Peruvian Politicians Find Rare Common Ground Shunning Odebrecht

(Bloomberg) -- Peru's bickering political class has found rare common ground as they line up to deny allegations that Odebrecht SA made generous donations to leading candidates during two presidential campaigns.

Jorge Barata, the former head of the Brazilian builder's Peruvian operations, told prosecutors this week the company contributed more than $5 million dollars to campaign officials for five presidential candidates, primarily during the 2011 race, according to local media.

Peru's biggest newspapers El Comercio and La Republica listed the 2011 candidates and the alleged donations on their front pages Thursday: Ollanta Humala ($3 million), Keiko Fujimori ($1.2 million), Alejandro Toledo ($700,000), and Pedro Pablo Kuczynski ($300,000). Barata also said the company financed Alan Garcia's successful 2006 presidential bid ($200,000) and a campaign against a recall of former Lima mayor Susana Villaran.

Barata's lawyer told reporters in Sao Paulo Wednesday that his client will hand over documents requested by Peruvian prosecutors. Barata was questioned as part of a probe into Fujimori's campaign finances.

The stakes are high. Humala and his wife Nadine Heredia were jailed in July pending trial over the alleged donation, which prosecutors say constitutes money laundering. And Kuczynski was almost impeached in December over payments from Odebrecht to his investment banking firm Westfield Capital Ltd. Most of the politicians, their parties and alleged intermediaries responded saying the accusations were false and lacked any proof.

Wilfredo Pedraza, a lawyer for Humala, denied any donation. Kuczynski, Peru's current leader who finished third in the 2011 election, also denied Barata's allegation, while saying it would be investigated. Susana de la Puente, Peru's ambassador to the U.K., rejected allegations that she received the donation for Kuczynski's campaign.

Fujimori denied the allegations, while her former campaign chief Jaime Yoshiyama and businessman Ricardo Briceno refuted the accusation that they received money to finance her presidential bid. Yoshiyama said he'll put himself at the disposal of prosecutors to clear his name. Garcia and the Apra party he leads said Odebrecht never contributed to any of its campaigns.

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net.

To contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Philip Sanders

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