His departure comes amid accusations of inappropriate influence in government matters.
Otarola is a seasoned politician and lawyer who acted as chief of staff to President Dina Boluarte who ordered him home from an official trip to Canada after the scandal erupted last weekend.
Otarola, 57, is married and has five children.
Over the weekend, the television program Panorama released what it said were recordings of Otarola in conversation with a woman named Yazire Pinedo, 25, who landed two contracts this year worth a total of $14,000 to do archive and administrative work for the government.
In one of the recordings a man alleged to be the prime minister says to her: “tell me, then, my love, so we can talk. You know these things are annoying, they are a pain, but you also know that I love you,” apparently referring to the red tape involved in bidding for a government gig.
Alberto Otarola has denied any violation of Peruvian labor laws or other wrongdoing.
“I understand the gravity of the political circumstances but I repeat that I did not do anything illegal,” he said Monday on X, formerly Twitter.
Peruvian president accepted Alberto’s resignation
In his resignation announcement, Alberto Otarola denied any wrongdoing but said he was stepping aside to avoid any perceptions of improper influence.
He characterized the complaints against him as mere political attacks from opponents aiming to destabilize the administration.
President Pedro Castillo accepted Alberto Otarola resignation and will now have to name a new Prime Minister.
This adds further instability for Castillo’s government, which has already gone through multiple Cabinet reshuffles since taking power last year.
Critics of Castillo argue the frequent ministerial changes show his administration has struggled to establish stable leadership.
Meanwhile, calls have risen for new general elections that could replace Castillo as President due to widespread disapproval of his handling of the role so far.
Torres’ exit removes one source of controversy, but uncertainty remains over whether Castillo can select a Prime Minister that can last longer in the turbulent political environment.
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