-Caveat Lector-

from:
http://news.bbc.co.uk/hi/english/world/americas/newsid_1004000/1004821.stm
Click Here: <A
HREF="http://news.bbc.co.uk/hi/english/world/americas/newsid_1004000/1004821.s

tm">BBC News | AMERICAS | Peru's attorney- general …</A>
-----

BBC's Claire Marshall in Lima
"There are many reports that the two had close, almost daily contact"
 real 28k

Friday, 3 November, 2000, 23:47 GMT  Peru's attorney- general resigns

The search for the former spy chief is still on
Peru's Attorney-General Blanca Nelida Colan has resigned following criticism
of her handling of the investigation into the country's former spy chief
Vladimiro Montesinos.

Montesinos: Still in hiding
The move is a further blow to scandal-hit Mr Montesinos, who is in hiding in
Peru following a bribery scandal.
It was widely believed that Ms Colan, a close ally, protected him in past
investigations.
Her decision came shortly after the Swiss authorities froze some $50m in bank
accounts linked to Mr Montesinos.
Opposition Congress members welcomed her resignation, citing her close links
to the former spy chief.
Money laundering

There is no doubt that its origin is illicit, from money laundering

President Fujimori President Alberto Fujimori also announced on Friday that
security at airports and border crossings would be stepped up to prevent Mr
Montesinos escaping.
He said the $50m in Swiss bank accounts had come from money laundering.
"I am the first to deplore these illegalities," he said.
"I knew absolutely nothing about an act of corruption of this nature."
The Swiss Justice Ministry said the money was in three Zurich banks. It has
asked other banks to reveal any other funds connected to Mr Montesinos.
Swiss authorities - who are trying to dispel the country's image as a haven
for hot money - are conducting a probe over suspected money-laundering.

The scandal has forced Mr Fujimori to call for new elections
The current crisis, which led Mr Fujimori to announce that he would not seek
reelection, began when Mr Montesinos was caught on video offering a $15,000
bribe to an opposition lawmaker.
Mr Montesinos - a top aide to Mr Fujimori for 10 years - then fled Peru.
After a failed asylum bid in Panama, he returned on 23 October and has been
in hiding since.
Investigations shelved
Ms Colan said her resignation was necessary for Peru's democratic
development.

The loyalty of the military is under question
Ms Colan - who was widely believed to have been handpicked for her job by Mr
Montesinos - has previously shelved investigations into his wealth.
In 1996, she ignored testimony from a high-profile drug trafficker who
claimed that he had paid Mr Montesinos $50,000 a month for use of a jungle
air strip to ferry drugs.
Coup
Mr Montesinos' return to Peru has prompted fears that he would attempt to
engineer a coup.
During his time in power, he helped choose many top military leaders.
But so far there has been no indication that the military will come to Mr
Montesinos's aid and some of the top guards who were his former allies have
been replaced by President Fujimori.
There has been a only small uprising in the south of the country, led by
Lieutenant Colonel Ollanta Humala.
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PROGRAMMES GUIDEBackground and analysis

Key stories:Growing sense of crisisQ&A: Shock resignationFilm that shocked
Peru

Profiles:Alberto FujimoriAlejandro ToledoVladimiro MontesinosSee also:

18 Sep 00 | Americas
Q & A: Fujimori resignation 02 Nov 00 | Americas
Bid to end Peru rebellion peacefully Internet links:

La Republica, Lima
The BBC is not responsible for the content of external internet sites
Other top Americas stories:

Bush-Gore dash for votes EU sues tobacco giants Landmark vote for Nicaragua
Hillary bids for historic win Sandinistas make a comeback in Nicaragua LA
hostage drama ends Ecuador bus crash kills 35 Titans crush Pittsburgh  Links
to top Americas stories are at the foot of the page.
©BBC
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