Most of the 300 professionals working on the organisation of the Lima 2027 Pan American Games are currently performing their duties without official service orders, according to reports uncovering serious budget irregularities inside Peru's national sports institute.
The Instituto Peruano del Deporte, the state agency overseeing public sports policy in Peru, lacks 450 million soles to contract planned services for this year. The shortfall has delayed key preparations ranging from opening ceremonies to physical infrastructure for the upcoming multisport event.
In Peru's public sector, service orders act as the standard legal contracts used by government entities to retain independent professionals and service providers. Working for state institutions without signed service orders is explicitly prohibited under Peruvian public employment regulations, leaving workers without legal contracts.
The contractual deficit coincided with a major gathering in the Peruvian capital hosted by Panam Sports, the governing body representing 41 national Olympic committees across the Americas. The organisation's president, Neven Ilic of Chile, led the week of meetings alongside the Panam Sports General Assembly, where officials presented progress reports on the 2027 Games while event staff dependent on the sports institute worked without contracts.
Congressional budget cuts
Organisers had originally established a total operational budget requirement of 885 million soles to prepare for both the Pan American Games and the Parapan American Games in 2027. The Pan American Games are the premier quadrennial multi-sport competition for athletes in the Western Hemisphere, followed by the Parapan American Games for athletes with physical disabilities.
In February, the sports institute received an initial allocation of 435 million soles through an official government decree. However, the remaining 450 million soles intended for key service contracts this year was eliminated during an evaluation by the Congressional Budget Commission. Former lawmaker Alejandro Soto explained the parliamentary changes that led to the funding being reduced to zero.
Following the decision in parliament, former lawmaker Illich López stated that the Ministry of Economy and Finance, which manages Peru's national budget and treasury, had decided to explore alternative financial mechanisms to secure funding for the event.
Requests for supplementary funding
In response to the budget gap, former Instituto Peruano del Deporte president Sergio Ludeña submitted a formal request for a new supplementary credit to the Ministry of Economy and Finance, which is currently led by Elmer Cuba.
Administrative difficulties have been compounded by past governance issues within the sports authority. Reports indicate that previous management at the sports institute distributed the initial 435 million soles without adhering to the transparency standards mandated by state law, causing widespread planning complications across operational departments.
Lima was selected to host the 2027 Pan American Games after previously staging the event in 2019. Staging the quadrennial games will require a final disbursement of 705 million soles in 2027 to complete preparations for the continent's largest sporting event.
