Reuters Peru scoop causes political storm

Reuters set the agenda on March 24 by staking out an event that was closed to the media and produced a scoop that put us hours ahead of domestic and foreign competitors — President Alan Garcia told foreign investors he would block the candidacy of radical leftist Ollanta Humala in 2011 elections. The story forced Garcia to go on TV and try to water down his remarks. But he didn’t challenge the accuracy of the story, or its premise. The story was picked up widely in Peru and abroad and prompted leading opposition figures to denounce Garcia as a threat to democracy. Reuters’ competitors had to rely on state media coverage. Nobody else made the connection to Humala, an ultranationalist who investors say is their biggest fear when it comes to doing business in Peru. Humala narrowly lost the 2006 election to Garcia and he plans to run again in 2011.