Country Reports on Terrorism 2012

initiatives. Paraguay also collaborated with Mercosur and Union of South American Nations
partners in border protection initiatives, regional exchanges, and discussions on counterterrorism
and law enforcement projects. While bilateral and multilateral relations between Paraguay and its
neighbors stalled following Lugo’s impeachment, counterterrorism efforts continued.
PERU
Overview: Peru’s primary counterterrorism concern remained the Shining Path (Sendero
Luminoso or SL). Although Peru nearly eliminated SL in the 1990s, the organization is wellentwined
with coca cultivation and narcotics trafficking and remained a threat to Peru’s internal
security. In February, Peruvian security forces captured Florindo Flores Hala (alias "Comrade
Artemio"), the leader of the Upper Huallaga Valley (UHV) faction of SL. Prosecutors charged
Flores with aggravated terrorism, drug trafficking, and money laundering. Because of SL’s
hierarchy, the capture led to a collapse in SL-UHV’s structure and capabilities. While SL still
operated in the UHV, it has been severely limited in scope.
A much larger and stronger SL faction occupies the government-designated emergency zone (an
area in which the government has suspended certain civil rights due to an “exceptional
situation”) known as the Apurimac, Ene, and Mantaro River Valleys (VRAEM). The emergency
zone expanded in 2012 to include additional territory near the Mantaro River due to the
concentration of SL leadership in close proximity to this tributary. In June, Peruvian authorities
also expanded the VRAEM emergency zone to include portions of the La Convencion Province
in the Region of Cusco, which has seen significant expansion of SL activity over the past year. In
2012, SL-VRAEM had several hundred armed members while the number of its supporters in
the urban areas was unknown. Although SL-VRAEM’s leaders claimed to have split with SL
founder Abimael Guzman, the faction continued to use Maoist philosophy to justify its illegal
activities. Involvement in drug production, narcotics trafficking, and extortion in the form of
“revolutionary taxes” provided SL with funding to conduct operations. The organization’s
involvement with drug trafficking also allowed SL-VRAEM to improve relations with cocagrowing
communities in remote areas.
Government efforts to improve interagency cooperation and to strengthen prosecutorial capacity
were somewhat successful. Police units specializing in counterterrorism and counternarcotics
conducted several operations with the Peruvian Armed Forces. Peru continued talks with its
neighbors to strengthen counterterrorism cooperation.
In January, the Movement for Amnesty and Fundamental Rights (MOVADEF), a front
organization of the Shining Path founded by Abimael Guzman’s lawyers, attempted to register as
a political party. The National Election Board denied the registration application, citing the
group’s links to terrorism. MOVADEF claimed to reject armed violence, but the National
Election Board found its link to SL to be clear. It was reported that MOVADEF gained further
support throughout the year in trade unions and rural communities. MOVADEF also increased
its international presence, staging protests in Argentina, Chile, and Mexico. They reportedly have
additional chapters in Bolivia, France, Spain, Sweden, and Uruguay.
The Revolutionary Armed Forces of Colombia (FARC) continued to use remote areas along the
Colombian-Peruvian border to regroup and make arms purchases. Peruvian government experts
believed the FARC continued to fund coca cultivation and cocaine production among the
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