Human Capital Minister Sandra Pettovello axes chief-of-staff over loan scandal

Human Capital Minister Sandra Pettovello has sacked her chief-of-staff after his name surfaced in a controversial list of state-backed mortgage loans granted to government officials.

According to reports, Pettovello requested the irrevocable resignation of Leandro Massaccesi within hours of the list – detailing loans issued by the state-owned Banco de la Nación Argentina to public officials – circulating online.

The list included officials from ministries, Congress and the Central Bank, triggering political criticism and debate over the optics of public officials accessing large-scale financing.

The now-former aide had taken out a loan of roughly 420 million pesos – one of the largest on the list and seen as incompatible with the austerity message promoted by the ministry.

Massaccesi’s departure was not due to any technical irregularity in the loan itself, but rather a clash with the “austerity policy” and “low-profile” protocol Pettovello has imposed within the ministry, according to government sources.

Government sources said the decision reflected the administration’s view that senior officials must avoid any behaviour that could be perceived as a privilege at a time of fiscal austerity.

The publication of the loan list has generated political noise in Buenos Aires, with critics questioning the optics of senior officials accessing large-scale financing. The government is also under pressure given media revelations involving Cabinet Chief Manuel Adorni, who is now facing questions over his wealth and assets.

The Human Capital Ministry is a key pillar of President Javier Milei’s administration. It was created when he took office in December 2023, bringing together social welfare, labour and education policy under a single portfolio, and handed to Pettovello, one of Milei’s closest collaborators.

Sources said Pettovello became aware of the situation on Thursday and was particularly concerned that the loan had been requested after Massaccesi entered public office. There was prior political consultation, said the sources.

Massaccesi, the son of former Río Negro governor Horacio Massaccesi, joined the government in August 2024 after replacing Fernando Szeresesky, a trusted ally of the minister. His appointment came amid reported tensions with top presidential adviser Santiago Caputo.

Backed by Pettovello at the time, Massaccesi secured the role over other candidates but lasted less than a year in the position.

– TIMES/PERFIL/NA