Why Was Peru's President Impeached Just Four Months into Office?

The recent impeachment of interim President José Jerí by Peru's Congress has sent shockwaves through the nation's already tumultuous political landscape. Jerí, who had only been in office for four months, faced accusations of failing to disclose crucial meetings with Chinese businessman Zhihua Yang, leading to a vote of 75 to 24 in favour of his ousting. This event marks another significant moment in Peru's ongoing political instability, as Jerí becomes the third consecutive president to be removed from office amid scandals and public outcry.

Last updated: 04 October 2023 (BST)

What’s happening now

Peru's Congress has acted decisively in impeaching José Jerí, reflecting widespread dissatisfaction with the political elite and a demand for accountability. The impeachment follows revelations concerning Jerí's clandestine meetings with Yang, who is under investigation for his business dealings in Peru. As a result, Jerí's removal has intensified calls for transparency and ethical governance in a nation that has seen a revolving door of leadership.

Key takeaways

• José Jerí has been impeached just four months into his presidency.
• The impeachment was prompted by undisclosed meetings with businessman Zhihua Yang.
• This marks the third consecutive president to be ousted in Peru amid political scandals.

Timeline: how we got here

The recent political turmoil in Peru has been marked by several key events:

• October 2022: Former President Dina Boluarte is impeached amid protests and allegations of corruption.
• June 2023: José Jerí assumes the presidency as the seventh leader since 2016.
• September 2023: "Chifa-gate" scandal emerges following reports of Jerí's undisclosed meetings.
• October 2023: Congress votes 75 to 24 to impeach Jerí.

What’s new vs what’s known

New today/this week

The latest developments include the official impeachment of Jerí, with lawmakers expressing their discontent over his lack of transparency and ethical governance. Ruth Luque, a key figure in the impeachment, emphasised the need for a leader who prioritises public interest over hidden agendas.

What was already established

Prior to the impeachment, Jerí had already faced public scrutiny and declining approval ratings following the emergence of videos showing him in meetings with Yang, who has faced allegations concerning his business practices in Peru.

Impact for the UK

Consumers and households

The political instability in Peru could affect international trade relations and investments, particularly in sectors where UK companies are engaged. Fluctuations in economic stability may also have downstream impacts on commodity prices that UK consumers rely on.

Businesses and jobs

Peruvian businesses may experience increased uncertainty in their operating environments, leading to potential disruptions in supply chains. UK businesses with interests in Peru must stay vigilant and consider contingency plans in light of the changing political landscape.

Policy and regulation

The UK government may need to reassess its diplomatic stance and trade agreements with Peru, especially if the new interim president reflects a shift in policy priorities or governance styles. Upcoming elections in Peru scheduled for April will further influence the regulatory environment.

Numbers that matter

• 75 to 24: The vote tally in favour of Jerí's impeachment.
• 3: The number of consecutive presidents ousted in Peru.
• 4: The number of months Jerí served as president before being impeached.

Definitions and jargon buster

• Impeachment: A process used to remove a sitting president from office for misconduct.
• Chifa: A term used in Peru for Chinese restaurants; used here to refer to the scandal involving Chinese businessmen.

How to think about the next steps

Near term (0–4 weeks)

The immediate period following Jerí's impeachment will likely see a new interim president appointed, with Congress expected to vote to replace him soon. This new leadership may attempt to re-establish public trust and address ongoing corruption investigations.

Medium term (1–6 months)

As general elections approach in April 2024, political parties in Peru will likely intensify their campaigns. Voter sentiment may focus on issues of corruption, governance, and public safety, indicating a shift in political priorities.

Signals to watch

• Upcoming congressional votes on the new interim president.
• Polls regarding public sentiment on political reform and governance.
• Any developments in the corruption investigation involving Yang and other officials.

Practical guidance

Do

• Stay informed about political developments in Peru, especially if you have business interests there.
• Engage with local representatives to understand potential impacts on trade and investment.

Don’t

• Avoid making hasty business decisions based on current political instability; consider long-term impacts.
• Do not overlook the importance of ethical governance in business partnerships.

Checklist

• Review your business’s exposure to Peru’s political risk.
• Monitor news outlets for updates on the interim government and policy changes.
• Consider diversifying supply chains to mitigate risks associated with political instability.

Risks, caveats, and uncertainties

Given the fluid nature of Peru's political environment, there are significant uncertainties regarding how the new interim president will govern. The potential for further unrest or protests could lead to additional changes in leadership, impacting both domestic and foreign business operations. Investors should remain cautious and prepared for potential volatility.

Bottom line

The impeachment of José Jerí underscores the urgent need for political reform and ethical governance in Peru. As the country heads towards a general election, the focus will likely shift to the new interim president and the political parties vying for power, promising a pivotal moment for Peru's future governance.

FAQs

What led to José Jerí's impeachment?

José Jerí was impeached for failing to disclose meetings with businessman Zhihua Yang, who was under government scrutiny, raising concerns over transparency and ethical governance.

How does this affect Peru's political landscape?

This impeachment marks the third consecutive removal of a president in Peru, highlighting ongoing political instability and public demand for accountability within the government.

What can we expect in the coming months?

Peru is set to appoint a new interim president, with general elections scheduled for April 2024, which will significantly shape the country's political future and governance approach.