PERU AIRLINE CHIEF FACES DRUG BAN

Zevallos Strenuously Denies Any Wrongdoing

The White House has put the founder of Peru's main airline, Aero
Continente, on its list of foreign "drug kingpins".

Fernando Zevallos, who has been the subject of investigations in both Peru
and the US, denies any wrongdoing.

Washington has also ordered US-based assets belonging to Mr Zevallos and
Aero Continente to be frozen.

Under US legislation, people placed on the US list of drug traffickers and
their businesses are denied access to the American financial system.

The White House's announcement came hours after a court in Lima opened
proceedings against Mr Zevallos, 46, on cocaine trafficking charges.

The trial was adjourned to 11 June to allow prosecutors more time to
prepare their case, a judiciary spokesman told AP news agency.

'Plot'

The US Drug Enforcement Administration says its has launched more than 30
investigations into Mr Zevallos.

He insists he is the victim of character assassination by convicted drug
dealers turned informers, overzealous US drug agents and business rivals.

On Tuesday the US administration froze US-based assets belonging to Mr
Zevallos, five other people, and seven companies linked to him.

"The US government has reason to believe that the six individuals and seven
entities identified... either assist in or provide financial or
technological support to the international narcotics trafficking activities
of Fernando Zevallos," said a spokesman for the US embassy in Lima.

Other additions to the White House's list of "drugs kingpins" include
people from Mexico, Jamaica, Afghanistan, and India.