Peruvian First Vice President Raul Diez Canseco presented a resignation letter to President Alejandro Toledo on Friday, two months after a scandal erupted on allegations that he gave a tax break to a girlfriend's father.

Diez Canseco, 55, explained that he made the decision to clear the constitutional accusations which the Congress is investigating, adding "I have decided to irrevocably resign the first vice presidency."

Diez Canseco is under the inquiry of the parliament's fiscal commission for alleged nepotism, abusing influence and approving an accord with Chile on "open skies" without the knowledge of the Peruvian Congress.

He has been the center of a political scandal since November when a local daily accused him of favoring his girlfriend's father with a supreme decree which allowed him to evade tax payment in transferring a restaurant.

His surprising resignation came when President Toledo's closest allies were accused of forging agreements with the corruption network of former presidential adviser Vladimiro Montesinos during Alberto Fujimori's rule from 1990 to 2000.

Political analysts consider Diez Canseco's resignation a big blow to Toledo's government, which is under fire due to growing public disapproval.

There was no immediate comment from the presidential palace.
 
(Xinhua News Agency January 31, 2004)