Peru defence minister resigns after delay in F-16 fighter jet purchase

LIMA: Peru’s Defence Minister Carlos Diaz resigned on Wednesday after interim President Jose Balcazar postponed a major deal to purchase F-16 fighter jets from the United States.

Balcazar, who is set to leave office in July, said the decision was made to defer the purchase until the next government takes over, citing the need to avoid committing future leadership to a large defence agreement.

Peru has been in long-running efforts to modernise its ageing air force, which still operates Mirage 2000 and MiG-29 fighter jets acquired in the 1980s and 1990s. The country plans to eventually acquire 24 new jets, with an initial batch of 12 aircraft forming the first phase of the deal.

Among the bidders is US defence company Lockheed Martin. The US State Department had already approved a potential sale of F-16 aircraft and related support to Peru in September last year, with the deal, valued at around $3.42 billion, also involving General Electric Aerospace and RTX Corp.

Local media reported that Balcazar had even cancelled a signing ceremony for the F-16 deal at the last minute on April 17, just hours before it was expected to take place, over concerns about binding the incoming government. However, officials have not officially confirmed that a ceremony was scheduled.

The US Embassy in Lima has not yet commented on the development.

Diaz, who assumed office on March 17, was also due to appear before Congress’s Defence Committee to explain the suspension of the deal before stepping down.