Alan García, Peru’s president, has appointed a popular leftwing regional governor as prime minister following the resignations of his entire cabinet over alleged corruption in the granting of oil concessions.

Yehude Simon, a congress member during Mr García’s first administration in the late 1980s, served time in prison for alleged links to the Tupac Amaru guerrilla movement and was pardoned in 2000. Although Mr Simon was not first choice for the job, many observers say he is a good choice, who may help Mr García’s administration communicate with Peru’s disenchanted leftwing parties and unions.