Political uproar in Argentina as vice president resigns

Argentine President Fernando de la Rua, left, at the swearing-in ceremony of new Cabinet ministers, as Vice Presidente Carlos Alvarez, looks on at the Goverment House in Buenos Aires on Thursday

BUENOS AIRES, Argentina (AP) -- Argentina's vice president resigned Friday, shaking up the ruling coalition of President Fernando De la Rua following a Cabinet shuffle.

Vice President Carlos Alvarez, who led an anti-corruption drive in the Senate, was apparently angered by the administration's failure to take stronger action in an influence-peddling scandal that has dragged on for months.

Interior Minister Federico Storani said Friday the vice president's resignation was "absolutely confirmed." But he said Alvarez had not withdrawn from the governing Alliance coalition altogether.

"He is leaving ... the vice presidency of the nation, but not the Alliance," Storani said.

Alvarez' departure from the second most powerful political post in Argentina appeared to be a setback for De la Rua, whose popularity has dipped in recent weeks over public frustration with his handling of the economy and an alleged vote-buying scandal in the Senate.

ALSO Amid recession, bribery scandal, Argentine president shakes up Cabinet

The departure has badly shaken the two-party ruling alliance which the president has depended on for passing crucial legislative reforms needed to revive South America's second-largest economy. It comes only 10 months into De la Rua's 4-year term.

As news of Alvarez's decision spread, hundreds of his supporters gathered outside his apartment in Buenos Aires, waving banners and chanting songs in hopes of persuading him to stay on. Dozens of lawmakers from his FREPASO party filed in and out of his apartment building.

Alvarez is a leader of the center-left FREPASO party; De la Rua heads the Radical party. As prominent leaders of the Alliance ruling coalition, the two men joined forces and were elected to office Oct. 24, ending the decade-long rule of Carlos Menem and his Peronist Party.

Alliance leaders said Friday that Alvarez's decision did not indicate the coalition was imperiled. "The Alliance is not finished," said Graciela Fernandez Meijide, the government's Social Development Secretary.

Analysts said the constitution is vague, but De la Rua could either call new elections or leave the vice presidential post unfilled.

In recent months, the Alvarez had taken a high-profile role in fighting perceived corruption in the Senate, pushing hard for a full investigation even as the president appeared cautious.

A federal judge is probing accusations that several senators had accepted payments from someone in government to vote in favor of a controversial labor reform bill approved in May. There have been no arrests or formal charges so far.

On Thursday, amid changes in the Cabinet, De la Rua announced he would retain two ministers whose names have surfaced in the scandal -- Alberto Flamarique and Fernando de Santibanes. Flamarique was promoted from labor minister to the powerful post of chief-of-staff, while Santibanes remained chief of the intelligence service.

During the swearing-in ceremony Thursday night, Alvarez looked glum and gave the new ministers' little applause.

"I needed to take this action to help reinforce our efforts to get the economy back on track," De la Rua said during a ceremony at the Government House.

The changes strengthened the position of Economy Minister Jose Luis Machinea, who also took over the infrastructure portfolio from its resigning minister Nicolas Gallo. The president named Chrystian Colombo as the new Cabinet chief; Jorge De la Rua, his brother, as justice minister; and Patricia Bullrich as minister of works.

Copyright 2000 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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