Bishop's presidential quest roils Paraguay

ASUNCION, Dec 28 (Reuters) A Roman Catholic bishop who says he is leaving the priesthood to seek Paraguay's presidency has drawn fire from the church, government and business leaders but is being embraced by many voters as a welcome change.

Opinion polls show Fernando Lugo, 55, who served as bishop in one of the South American country's poorest areas, is the most popular of possible candidates ahead of 2008 elections -- even though he lacks the backing of any party.

''I don't think he should have resigned as bishop but I'll vote for him anyway because he's not corrupt like the candidates put forward by the political parties,'' said Mario Ramirez, a 30-year-old government worker.

President Nicanor Duarte, from the Colorado Party that has run Paraguay for six decades, said Lugo was doomed if he became the candidate of an opposition party or coalition.

''He can't say he's an alternative, a different choice, if he starts to be part of an opposition that, sadly, hasn't even been able to build an internal consensus,'' said Duarte, who is seeking to reform the constitution so he can run for a second five-year term.

Lugo, who runs a parochial school, came to political prominence this year by leading a large anti-government march.

On Christmas Day, he announced he was quitting the priesthood and was available to accept a presidential candidacy from an as-yet-unformed opposition coalition. He has met to discuss strategy with opposition leaders, who traditionally have balked at accepting party outsiders as candidates.

Lugo also said he would seek a woman as his running mate.

His announcement defied a Dec. 20 letter from the Vatican asking him not to accept a candidacy and threatening sanctions if he did, citing church rules against priests taking public office. The letter was made public on Tuesday.

Yesterday, Bishop Ignacio Gogorza, president of the Paraguayan Episcopal Conference, said Lugo should have waited for the Vatican to accept his resignation.

''If the church doesn't give him permission and he does it on his own, he is at odds with the church,'' Gogorza said.

Agricultural and industrial groups said they worry Lugo would follow the path of leftist leaders in the region who have nationalized natural resources, such as Bolivia's Evo Morales.

''There is fear over what he could do if he became president,'' Gustavo Volpe, president of the Paraguayan Industrial Union, said in a radio interview.

He said Lugo could get financial support from anti-US Venezuelan leader Hugo Chavez -- a point denied by Lugo in a recent interview with Reuters.

''I'm not sure Lugo is strong but at least he's novel,'' said Alfredo Boccia, a political analyst who sees him winning over Paraguayans sick of traditional parties. ''He's a candidate who has created expectations.'' Reuters SBA VP0420