Peru's government made a $462 million payment to US defense contractor Lockheed Martin on April 22 for purchase of 12 F-16 fighter jets, the first installment in a controversial multi-billion-dollar deal that triggered the resignation of two top ministers earlier in the day. Defense Minister Carlos Diaz and Foreign Minister Hugo de Zela cited their opposition to interim President Jose Balcázar's attempt to delay the deal.
The payment came days after a $2 billion contract for 12 F-16s was signed by an official in Peru's Air Force—over the head of Balcázar, who was informed of finalization the deal only after the fact.
In fact, hours before a ceremonial signing April 17, Balcázar announced in a radio interview that the next president should decide on the deal, saying his interim government lacked the authority to make such a large investment. In early March, Balcázar had signed a decree [8] designating the project a "military secret," limiting public information about government negotiations.
In a lengthy post [9] after the signing, the US Embassy said that on April 14 "Lockheed Martin was informed in writing of its selection, with a technical signing scheduled for 7:00am and a ceremonial signing for 5:00pm on April 17." The US ambassador, Bernie Navarro, accused Balcázar of "bad faith" in accouncing the postponement, and warned that Washington would use "every available tool" to promote its interests.
Peru has spent years negotiating with different companies to modernize its aging fleet of Mirage 2000 and MiG‑29 fighters acquired in the 1980s and 1990s. The Air Force says it is looking to eventually acquire a total of 24 jets from Lockheed.
The imbroglio has yet further divided Peru's already rancorous political class, and especially raised suspicions of US intentions. "It's extortion," Jorge Nieto, a centrist presidential candidate and former defense minister, said in a TV interview. "If we don't play our cards right, we run the risk of turning from a country into a territory." (NYT [10], BreakingDefense [11], Reuters [12])
Results still had not been finalized for the presidential race, which took place on April 12. Police in Lima on April 24 raided the home of Piero Corvetto, former head of the National Office of Electoral Processes (ONPE), as part of a judicial warrant in an investigation of electoral irregularities. (Al Jazeera [13])
