By Marco Aquino

LIMA, Oct 13 (Reuters) - Haunted by a time when government spying was common, Peruvians fear wiretaps are being used again after audiotapes emerged that uncovered a bribery scandal and forced President Alan Garcia to fire his entire cabinet.

The recordings, which linked members of Garcia's APRA party to a plan to steer energy contracts to favored bidders in exchange for bribes, were reminiscent of spy schemes under former Peruvian President Alberto Fujimori.

The tapes, disclosed last week, have left business leaders and politicians wondering if wiretaps continued even after Fujimori went into exile in 2000. The former president is now on trial for human rights crimes.

"There exists a sort of collective psychosis in the country. No one wants to talk by phone -- like us, right now," Congressman Jose Urquizo told Reuters.

"It's better to talk in person."

Fujimori's powerful intelligence chief, Vladimiro Montesinos, built an elaborate espionage network during their decade-long rule, recording thousands of secret meetings between politicians, judges, reporters and businessmen. His administration bought loyalties and sowed distrust.

When the tapes were exposed, they linked nearly every prominent public figure to a corruption scheme. Fujimori was forced to resign and Montesinos was jailed.

Urquizo, who sits on the Intelligence Committee in Congress, said the government's equipment for recording phone conversations disappeared around the same time Montesinos was forced out in late 2000.

"These machines could have passed into the hands of a parallel group that could now be doing the wiretapping," Urquizo said.

Fernando Rospigliosi, a former minister of the interior, broke the story of the scandal by giving audiotapes he says were dropped by his house to an investigative television show.

He said several media outlets declined to broadcast the recordings, perhaps because they feared government retaliation.

"What we've seen in the last few days is proof of a wiretapping industry," Rospigliosi told Reuters. (Writing by Dana Ford; editing by Terry Wade and Mohammad Zargham)

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