The controversy over it has exposed the fragility of the leadership of the president of Peru, the internal tensions in the Executive and an evident alignment with the interests of Washington. Two of his ministers publicly disowned him, accused him of lying and ended up prevailing over his decision to postpone an acquisition valued at $3.5 billion.
Balcázar, the third interim president of the last five years, had resisted approving the purchase from the American company Lockheed Martin. Since Friday the 17th—when he canceled the contract signing ceremony—he reiterated on at least four occasions that he would leave the decision in the hands of the next elected government, as it was a large-scale commitment that, in his opinion, did not correspond to a transitional administration.
His position opened a deep breach in the Council of Ministers. Premier Luis Arroyo, Defense Minister Carlos Díaz and Foreign Minister Hugo de Zela urged him to continue with the operation, arguing that there was a prior commitment made during the Dina Boluarte government in 2024. In parallel, a sector of the political class warned of possible penalties for the country if the process was stopped, while others supported the president’s caution, pointing out that there are more urgent national priorities than the reequipment of the Peruvian Air Force. (FAP).
According to the newspaper The Republicthe process had been questioned since the management of José Jerí, when a public tender was allegedly ruled out and options such as the French Dassault Aviation (Rafale F4) and the Swedish Saab (Gripen E/F) were left aside, directly favoring Lockheed Martin.
He . When the issue seemed settled and the president believed he had stopped the operation, it emerged that the contract had been signed secretly and without his participation. According to various sources, the then Minister of Defense, Carlos Díaz, ordered the general commander of the FAP, Mario Contreras León Carty, to continue with the purchase despite presidential opposition. That same day, Colonel Carlo Rey Benavente, head of the FAP’s Technical Supply Service, signed the contract with the representatives of the American firm. It was an officer who gave the final approval and not Balcázar, who holds the position of supreme head of the Armed Forces.
The next day, among contradictory versions, Balcázar, 83, denied the existence of the document and confirmed that the decision would fall to the successor. However, on Wednesday the situation took a definitive turn: Foreign Minister De Zela and Minister Díaz confirmed in a radio interview that the contract had already been signed, accusing the president of having been untruthful.
Cornered by the revelations, Balcázar dismissed Díaz, accepted De Zela’s resignation and offered his first Message to the Nation in two months of administration. In an attempt to contain the damage, he claimed not to have participated in the negotiations, but implicitly admitted his lack of authority: “I have not intervened in those negotiations, so it cannot be said that I have lied.”
Almost in parallel, Premier Luis Arroyo issued a statement that ended up undermining the presidential figure. He maintained that the National Security and Defense Council (Cosedena) had approved the purchase and that, because it was a “strategic decision”, the Executive had to comply with it.
In this scenario, the role of the United States ambassador, Bernie Navarro, has been decisive. The diplomat previously warned that, if his country’s “interests were undermined,” “all available tools” would be used in defense of the Trump administration. Navarro, who met with the Minister of Defense on the day of the signing, stated that the contract was signed “with full knowledge of the highest levels of the Peruvian government,” in a clear allusion to Balcázar’s position.
The economic and political outcome
In recent hours, Navarro has intensified its presence in the media promoting the benefits of the F-16, ensuring that the first fleet will arrive between 2029 and 2030 after training personnel and adapting the infrastructure. “Peru complied with the contract. It means that it is serious in its way of doing business,” declared the ambassador.
The episode added a critical chapter when the Minister of Economy, Rodolfo Acuña, authorized the first transfer of 462 million dollars to Lockheed Martin. The announcement was not made by the Executive, but by the president of Congress, Fernando Rospigliosi, who was willing to process the motion of censure against Balcázar promoted by legislator Ilich López. “If it has the signatures, it must be processed. There is no way around it,” he stated.
While Amadeo Flores takes over as the new Minister of Defense and the Foreign Ministry remains headless, Luis Arroyo remains in office despite his open defiance of the president. The Government is thus navigating a crisis that leaves an open question: Who really exercises power today in Peru?
