(Maybe the gold was never there.)

Wednesday May 2 2:15 PM ET
Peru Looks for Gold Bars in Fujimori Probe

LIMA, Peru (Reuters) - Peru said Wednesday it was investigating allegations of missing gold bars held by the central bank amid accusations that disgraced ex-President Alberto Fujimori made off with $1 billion in bullion, cash, diamonds and shares.

``An investigation is underway into the gold bars,'' Attorney-General Nelly Calderon told reporters.

``We have asked for information from central bank officials, the economy ministry and the defense minister regarding the fate of gold medals which, according to documents, was what these gold bars were to be used for,'' Calderon said.

The central bank said in a statement that ``no gold bars, cash or any other paper or shares were removed from the institution'' since 1992 when the current management took over.

Fujimori, Peru's president from 1990-2000, has rejected allegations he made off with $1 billion in gold as ``absurd'' in a letter sent to Peruvian media from Japan. Fujimori fled to Japan last November at the height of a corruption storm sparked by his fugitive ex-spy chief, Vladimiro Montesinos.

But David Waisman, head of a congressional commission investigating Montesinos, said lying was Fujimori's style.

Waisman has alleged that Fujimori took gold ingots, cash, diamonds, securities and bullion during his ten years in office. Congress fired Fujimori in November as ``morally unfit'' to rule.

A central bank spokesman said the ingots in question came from seized contraband gold and were due to have been cast into medals for heroes of Peru's border conflict with Ecuador.

Fujimori said the allegations were untrue and bizarre.

``It would have been impossible to take out this quantity of gold bars from the central bank without anyone realizing it. I would have needed at least 10 cargo planes ... and the presidential plane would not have been able to take off with 10 percent of this fantastic cargo,'' Fujimori said in his letter.

The state attorney leading investigations into Montesinos said last week he was preparing to bring charges imminently against Fujimori for illegal use of state funds. He said the charges were based on the corroborated testimony of a public figure that he considered ``direct proof.''

The charges would be the most serious against Fujimori, who has not yet been directly linked
with what investigators call Montesinos' ``mafia.'' Peru has, however, filed criminal charges
against him for abandoning office and dereliction of duty.

Fujimori, who has made clear he is in no hurry to return to Peru, denies the charges. Meanwhile, Tokyo does not as a rule return its nationals and has no extradition treaty with Lima.

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