Toledo’s Political Future Seen as ‘Ruined’ Over Real-Estate Scandal

A scandal in Peru over the purchase of two expensive properties by the mother-in-law of former President Alejandro Toledo could end any future plans in his political career in the Andean nation, according to political analyst Fernando Rospigliosi.

Rospigliosi, a well-known analyst and Interior Minister in Toledo’s administration, said that the former president has been politically “ruined.”

“I think that he’s drowned,” Rospigliosi said, according to daily La Republica. “He has become involved in absurd, unnecessary trouble.”

Toledo, who governed from 2001 to 2006, has come under fire this week after it was revealed Sunday that his mother-in-law bought an office and a house in Lima for about $5 million. Peru’s Attorney General’s office said that it was opening a preliminary investigation into allegations of illicit enrichment.

Although initial allegations were made by his political opponents, the interest of the Attorney General’s office was peaked when Toledo appeared to compound and backtrack on earlier statements when attempting to answer media allegations too frequently.

The purchases of the properties were made through two offshore companies, one located in Costa Rica that the mother-in-law reportedly set up last year, and another in Panama, which has connections to a Peruvian-Israeli executive with close ties to Toledo.

Toledo denied any wrongdoing, saying that the properties were purchased with some savings and a mortgage that was provided by Scotiabank in Costa Rica, as well as a loan from Yosef Maiman. However, investigative journalist Gustavo Gorriti in IDL-Reporteros reported this week that Maiman “is broke” and has declared bankrupty in the U.S. and in Israel.

Toledo said that his mother-in-law, Belgian citizen Eva Fernenburg, 86, wished to invest in Peru because that is where her daughter lives and “to be able to rent the properties.” Individual foreign investment in the buoyant local real estate market has increased in recent years, particularly among Spanish, Argentine and other South American investors.

Toledo said the accusations against him are the work of his “political enemies” who are trying to discredit him before a possible run for office in 2016.

4 Comments

  1. Roxanne Rios says:

    Yes indeed Mr. Toledo’s reputation has been ruined but this is nothing new, his entire administration was surrounded with scandals mainly due to his weekends of drunkeness at beaches in the north, his peeing on the sidewalks, and his family’s general wrongdoings. Mr. Toledo lost credibility way before this new scandal. I would not be surprised if the Humala Chavista led government is behind these new scandals and investigations of former presidents that appear to be with the sole intent of discreting and preventing opposition party leaders from running against Humala’s wife Nadine Heredia in 2016. Heredia is forbidden by law to run in 2016, according to the law, she must wait one term before running leaving her free to run in 2021. However this administrations appears to want to stay in power in the same manner as other L.A. Chavistas e.g. Ecuador, Bolivia, Argentina and Venezuela.

  2. Is clear that these statements are given to prevent Alejandro Toledo candidacy for
    president 2016

  3. The government is so corrupt its disgusting. All that money could be helping the poor have water and the basic things we take for granted. Roads could be improved and public transportation not to mention electric. I think and would hope Kuczynski would run and win the next presidential election. I think that would be a good start

  4. Bhupendra Chahar says:

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