Guatemala's president 'will not resign'

Otto Perez dismissed corruption allegations against him by prosecutors and said on Sunday he would not stand down as president, despite mounting pressure on the government and calls for his impeachment as a presidential election looms.

In a pre-recorded address that was televised to the nation, Perez said he had received no money from the customs racket to which investigators have linked him, and stressed that his conscience "was clear." He also apologized to Guatemalans for the corruption that has wracked his administration.

"I will not resign and will fully submit myself to the legal process," said Perez, a 64-year-old retired general. "I categorically reject any link (to the scandal)."

Former Vice President Roxana Baldetti was detained on Friday and is suspected of illicit association, bribery and fraud. Government leaders resigned over the weekend to protest the scandal.

Guatemala's attorney general and a UN-backed anti-corruption body known as the CICIG sought to impeach Perez after months of investigation into the racket known as "La Linea," or "the line," named after a phone hotline used by businesses to contact the corrupt network of customs officers.

Perez's agriculture and health ministers both quit his cabinet on Sunday, following in the footsteps of two others on Saturday who said they could no longer serve in his government.

It is unclear how much money was involved in the fraud, but more than 20 people have been arrested over it so far.

Perez's remaining time in office will be short whatever the results of the CICIG investigations, as he is not eligible to run for another term in this year's elections. The first round of the presidential vote is due on September 6, although with a 50 percent winning threshold in place, the elections are likely to go to a second round run-off on October 25.

dr/msh (AP, Reuters)