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. Last Updated: 07/27/2016

Scandals Rock Fujimori Government

LIMA, Peru -- With Cabinet resignations mounting, Peruvian President Alberto Fujimori is battling a government spying scandal that has become one of his stiffest challenges since taking office seven years ago.

In the biggest public rally yet against the president, more than 5,000 demonstrators marched through downtown Lima on Thursday to protest the government's alleged telephone espionage and its decision to strip a prominent Peruvian of his citizenship.

Fujimori has denied that intelligence services were involved in telephone eavesdropping and said his government had brought economic stability to Peru.

The harshest blow to the government was the loss of Foreign Minister Francisco Tudela, a hero during the recent hostage crisis and one of Fujimori's most respected ministers.

Tudela said he resigned for personal reasons. But news reports said he was upset by allegations the government had spied on leading Peruvians, and by the government's decision to strip Baruch Ivcher, an Israel native, of his citizenship.

The government is accused of targeting Ivcher because his station aired reports linking the military to torture and corruption.