At first glance, the appointment of Yehude Simon as Prime Minister means a major setback for the aspirations of Chavez ally, Ollanta Humala.

CENTERFORSECURITYPOLICY: ��Petrogate in Peru

"Yehude Simon must understand that the problem with Del Castillo's cabinet wasn't just a problem of the tapes, " Humala said in a statement.

CENTERFORSECURITYPOLICY: "Petrogate�� in Peru

His choice of Yehude Simon is seen by many as a shift away from market economic policies to populist measures, putting greater emphasis on social programs, in order to neutralize his critics on the left and regain support in the provinces.

CENTERFORSECURITYPOLICY: "Petrogate�� in Peru

The presence of this agency has been questioned by many, including Regional President of Lambayeque, Yehude Simon who stated that he would "never" allow such an office to be placed in the region without having first sought the approval of the Ministry of Foreign Affairs or the Regional Government itself.

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