Lima - Peruvian President Alan Garcia was on Thursday looking to appoint a new Cabinet chief, after Prime Minister Yehude Simon resigned hours earlier. Education Minister Jose Antonio Chang, a 51-year-old industrial engineer of Chinese descent, was being mentioned as Simon's most likely successor, although Garcia refused to confirm it.
"I don't know anything. That is what newspapers are saying, but I still haven't heard anything," Garcia laughed and said, when reporters asked him about Simon's replacement.
On Tuesday, Garcia announced a major Cabinet reshuffle set for the weekend. Simon - whose exit had been long-expected - announced his resignation late Wednesday, following a decision last month to step down after settling a dispute with indigenous Amazon groups.
The centre-left Simon, former chief of the Peruvian Cabinet, had promised to resign after clashes between indigenous demonstrators and police that left at least 33 dead - including 24 police officers - on June 5. He faced strong criticism from both opposition groups and the public.
Indigenous Amazonians were on strike for more than two months to demand the repeal of laws that gave foreign investors access to the Amazon's mineral wealth and forests. The laws were enacted without any consultation with the indigenous groups.
The bloody protests ended after the new legislation was revoked.
While Simon's Cabinet survived a no-confidence motion last week, his position appeared to have been seriously weakened. The motion was based on the allegation that Simon made wrong decisions that led to the violence.
The country remains unsettled, with trade unions and civic groups demonstrating across Peru against Garcia's economic policies. Workers' representatives claim the government is only willing to engage in dialogue once demonstrations threaten to spin out of control.
At least 15 per cent of Peru's population lives under the poverty line, and many claim that the poor are not benefiting enough from the government's policies.
