A Peruvian politician calling himself the “Trump of Peru” is pushing back against claims he is secretly working for China.
“False. It’s fake,” said Lima Mayor Rafael López Aliaga outside a federal courthouse in Washington, D.C.
López Aliaga was in court for the latest round of litigation after the municipal government seized investments in the Rutas de Lima toll road complex held by Brookfield. The NYSE-listed firm has close to $1 trillion under management.
Brookfield has won multiple legal battles against the López Aliaga government, including $2.7 billion in arbitral awards. Courts have rejected attempts by the Municipality of Lima to link Brookfield to the previous owner of Rutas de Lima, a Brazilian company mired in bribery scandals.
During a court hearing last week, attorneys from Boies Schiller Flexner asked U.S. District Judge Ana Reyes to overturn $200 million in arbitration losses. They argued the municipality’s former attorneys had a conflict of interest.
López Aliaga appeared to nod off during the proceedings while Judge Reyes issued stern warnings to the Municipality of Lima’s legal team that they could be sanctioned if they continue to “make a mockery out of this court and our laws” with what she deems frivolous claims.
“Your client has done itself absolutely no favors. I mean, it has no credibility. None,” Reyes said. “I have probably zero faith that your client is acting in good faith.”
“You all should proceed very carefully,” the judge warned.
López Aliaga’s appearance comes on the heels of a report that Rep. Greg Steube (R-Fla.) expressed alarm in a letter to Secretary of State Marco Rubio about López Aliaga’s role in a Chinese rail project linking Brazil to the Port of Chancay outside Lima.
“Mayor López Aliaga, a man with clear ties to Chinese state-backed enterprises, may soon seek the presidency of a nation whose capital, infrastructure, and minerals are already tethered to Beijing,” Steube wrote.
Speaking to reporters after the hearing, Michael Caputo of Boies Schiller Flexner insisted “there is no way our government views the mayor as pro-China.” Caputo said the Chancay port is “controlled by China,” but its construction “predates the mayor.” Chancay was inaugurated last year by Chinese President Xi Jinping.
In addition, a recent report from the Foundation for Defense of Democracies detailed López Aliaga’s political and business ties to China and Chinese state-owned entities in Peru, such as through his co-ownership of PeruRail, which has lucrative commercial ties to large Chinese copper mining companies in the country.
FDD analysts argue Beijing is purposefully targeting Peru — and López Aliaga — as part of its Belt and Road Initiative. The policy directs Chinese state capital toward nations the U.S. may be overlooking, particularly those rich in minerals. Analysts say it gives the Chinese government more leverage in economic and social development.
