Peruvian Agrarian Bondholders Applaud OECD Choice To Defer Membership Decision On Peru

WASHINGTON, Dec. 19, 2017 /CNW/ -- The following release is issued on behalf of Peruvian-American Bondholders for Justice (PABJ):

Peruvian-American Bondholders for Justice (PABJ), a group dedicated to the fair repayment of the defaulted Peruvian agrarian reform bonds, issued the following statement today regarding the decision by the Organisation for Economic Co-operation and Development (OECD) to defer a decision on whether to invite Peru to join the organization:

"We applaud the OECD's decision to defer a membership decision on Peru. As discussed in a report issued by PABJ on December 4, 2017, Peru's inaction, deception and fraud with their failure to resolve the defaulted agrarian reform bonds continues to be indicative of long-standing systemic corruption, which impacts the country's credibility and eligibility to join the ranks of OECD-ready nations.

"Peru expropriated 23 million acres of land from citizens between 1969 and 1979, and citizens were forced to accept the agrarian reform bonds in exchange for their land.  In most cases the bonds were never repaid, and those that have been repaid were recently cashed out for paltry sums per acre.

"Choosing not to offer Peru candidacy in the OECD at this time is the right choice, particularly in light of the serious allegations that have arisen against multiple high-ranking members of the Peruvian government in the last few weeks.

"Those include:

• After flatly denying that he had received funds from Brazilian construction company Odebrecht, which is enmeshed in Latin America's biggest corruption scandal, Peru President Pedro Pablo Kuczynski finally admitted that he was a financial adviser to them; Peru's Congress has released documents showing that companies linked to the President were paid $4.8 million at the same time he served as Prime Minister or Minister of Economy and Finance.
• Three members of the highest court in Peru, the Constitutional Tribunal, could face removal and other sanctions in the following days by Congress (Justice Eloy Espinosa may face permanent removal and a 10-year suspension from public functions) on corruption charges – and another (former Tribunal President Oscar Urviola) is under investigation in a forgery case in which white-out was used to alter a court decision related to the agrarian reform bonds.

"The hallmarks of an OECD-ready nation are a commitment to transparency, economic development, and furthering policies and solutions to improve the quality of citizens' lives. The OECD's mission statement also declares that they 'set out to make life harder for the terrorists, tax dodgers, crooked businessmen and others whose actions undermine a fair and open society.'

"In addition to the recent allegations of corruption in the current administration, Peru's history of failing to disclose the agrarian reform bond debts with the OECD and the IMF shows that they fall into the category of nations that the OECD seeks to avoid.

"We call upon the OECD to continue deferring Peru's candidacy for membership until it meets all of the eligibility requirements, particularly those related to rule of law, corruption, and debt repayment practices."

SOURCE Peruvian-American Bondholders for Justice (PABJ)

For further information: Peruvian American Bondholders for Justice (PABJ), [email protected]