Peru water utilities face audit irregularities and rising resource losses

water utility management SEAL Arequipa water loss Contraloría audit Peru water coverage

An audit by the Contraloría General de la República has identified irregularities in the management of SEAL, the water utility in Arequipa, Peru. The audit, covering the period from January 2023 to December 2025, found that SEAL approved additional benefits totaling S/ 12,732,223.50—approximately 24.9% of the contract value—without following legal procedures or ensuring the adequacy of required guarantees. Furthermore, the report noted that one of the consortium members involved was disqualified.

Separately, an analysis by the Instituto Peruano de Economía (IPE) highlights systemic management issues within Peru's water and sanitation companies. The report reveals that 38 of the 50 evaluated companies fail to bill at least 30% of the water they produce, largely due to leaks and illegal connections. Some providers, such as Agua Tumbes, report losses as high as 69.9%.

These inefficiencies coincide with a decline in national water coverage. According to INEI data, national coverage dropped from 83.9% in 2017 to 83.3% in 2025. The decline is particularly evident in urban areas, where coverage fell from 90.5% to 88.7%, leaving over 700,000 people without access to the public water network.

Entities

Arequipa · Contraloría General de la República · Instituto Peruano de Economía · Peru · SEAL

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] One of the consortium members involved in the contract was disqualified. investiga.pe
[○ 1 SOURCE] The Contraloría General de la República identified irregularities in SEAL's maintenance service management in Arequipa. investiga.pe
[○ 1 SOURCE] SEAL approved additional benefits totaling S/ 12,732,223.50, representing 24.9% of the contract amount. investiga.pe
[○ 1 SOURCE] Urban water network coverage dropped from 90.5% in 2017 to 88.7% in 2025. jornada.com.pe
[○ 1 SOURCE] Additional benefits were approved without requiring the adjustment of corresponding guarantees. investiga.pe
[○ 1 SOURCE] National water network coverage in Peru decreased from 83.9% in 2017 to 83.3% in 2025. jornada.com.pe
[○ 1 SOURCE] Agua Tumbes, EPS Grau, and Sedaloreto report non-billed water losses exceeding 60%. jornada.com.pe
[○ 1 SOURCE] 38 out of 50 evaluated water companies fail to bill at least 30% of the water they produce. jornada.com.pe

Sources

Arequipa: SEAL aprobó prestaciones adicionales por S/ 12. 7 millones sin cumplir el procedimiento legal [investiga.pe]

8 days ago

Escándalo en La Uniòn Contraloría detecta perjuicio demás de S/ 232 Mil y encuentra expedientes tirados en sacos - Radio Fantástico [radiofantastico.pe]

6 days ago

Fiscalía investiga a 18 personas de la Junta de Usuarios del Jequetepeque por presuntos delitos [causajusta.pe]

7 days ago

Empresas de agua pierden hasta 70% del recurso producido [jornada.com.pe]

7 days ago