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Peru arrests six generals amid graft investigation

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Foiled attack fuels tensions in Brazil ahead of inauguration

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Canada's First Quantum CEO holds talks with Panama minister, source says

Dec 26 (Reuters) - The latest in Latin American politics today:

Argentina president to comply with 'unfair' court ruling

BUENOS AIRES - Argentine President Alberto Fernandez said his government would abide by a recent Supreme Court ruling and give a larger proportion of state funds to the opposition-controlled city of Buenos Aires.

The announcement signaled a reversal from a decision last week that drew a backlash, when Fernandez said he was rejecting a ruling from the court that increased funding to the capital.

"Judicial rulings are binding even when they are deemed to be disadvantageous and unfair," Fernandez said on Twitter, clarifying that the funds will be paid in peso-denominated bonds.

Peru arrests six generals amid graft investigation of ex-President Castillo

LIMA - The anti-corruption unit of Peru's attorney general's office detained six generals amid an investigation into allegations the government of ousted former President Pedro Castillo illegally promoted police and military officers.

The attorney general's office said on Twitter the detained generals are being investigated for "allegedly having paid to rise in rank in 2021 with the authorization of former President Pedro Castillo."

The arrests come as Castillo, who was arrested earlier this month after lawmakers voted him out of office for attempting to illegally dissolve Congress, is investigated for so-called influence peddling. Castillo faces six separate charges of corruption, all of which the former president has denied.

"This has been unnecessary, because they haven't found anything," Castillo's former Defense Minister Walter Ayala, whose home was raided, told reporters. "This investigation is over a year old ... this is a show."

Bolsonaro's call to arms inspired foiled Brazil bomb plot, police are told

BRASILIA - A man arrested for attempting to set off a bomb in protest against Brazil's election result was inspired to build up an arsenal by far-right President Jair Bolsonaro's call to arms, according to a copy of his police testimony seen by Reuters.

George Washington de Oliveira Sousa was arrested on Saturday, the day after police said they foiled his plot to set off an explosive device near the Brasilia airport.

The incident added a new dimension to post-election violence in Brazil, where tensions remain high after the most fraught election in a generation.