As Argentina's midterm electoral campaign reaches its second and third climaxes, the number of scandalous corruption accusations aimed at the highest echelons of national politics is surging.
The correlation with the electoral campaign is undeniable, particularly as most of these follow a similar modus operandi: a media outlet or journalist receives an information leak containing videos, audio recordings or documents that reveal a network of shady dealings that strongly hint at graft on a substantial scale. Many of these cases involve the so-called “iron triangle,” composed of President Javier Milei, his sister and Presidential Chief-of-Staff Karina Milei and freelance political strategist Santiago Caputo.
Unfortunately, this is nothing new – so-called 'campaña sucia' or “smear campaign” tactics are a defining characteristic of the Argentine political ecosystem during the electoral season. Cases have previously emerged involving all of the most recent administrations and even the recent investigation into roughly 100 deaths as a consequence of contaminated fentanyl involves a sketchy businessman with ties to ex-president Cristina Fernández de Kirchner.
The latest, and maybe most graphic situation, involves President Milei’s own personal lawyer and head of the ANDIS national disabled agency, Diego Spagnuolo, and potentially implicates Karina and her political operatives, advisor Eduardo ‘Lule’ Menem and Congress Speaker Martin Menem. As always with these cases it is important not to get distracted with the trees but rather to visualise the broader forest, so to speak. The leak is part of a strategy aimed at producing real harm, particularly in terms of political capital that translates into votes. At the same time, the fact that it seems to be part of a covert espionage operation doesn’t clear those on the receiving end of wrongdoing, particularly not in this case where the information hasn’t even been disputed and Spagnuolo has been quickly ejected from the government.
The evidence is incontrovertible. A series of audios allegedly pertaining to Spagnuolo detail a scheme of inflated prices in official purchases of medications and other health services to the tune of five to eight percent that allegedly flowed into the hands of ‘Lule’ Menem and Karina Milei, along with a chain of operators. The apparently secret recordings sound as if they were made at a public place such as a restaurant. They were initially released by journalists Ivy Cángaro and Mauro Federico via independent investigative outlet DataClave, making the rounds on social media almost at the same time. Assuming the voicenotes are genuine, Spagnuolo is extremely candid about the corruption scheme, detailing figures and operational structures. He notes that he received pressure from ‘Lule’” and his cousin Martín Menem to conduct purchases from drug-maker Suizo Argentina, which is owned by the Kovalivker brothers.
Spagnuolo then notes that lower level “rats” skim off between US$20,000 and US$30,000 a month, while the whole operation is in the US$500,000 to US$800,000 range. He notes that the percentage of the bribe was raised from five to eight percent and that Karina, unaware of the increase, is getting ripped off, receiving only three percent after a percentage point is discounted to cover the costs of the operation (i.e. bribes at a lower level in the chain). Suizo Argentina allegedly acts as the central node, receiving payments and “elevating” them to “Presidencia,” a reference to the Spanish-language name of Karina Milei’s office (i.e. “Secretaría General de la Presidencia”).
Spagnuolo tells whoever he’s speaking to that he’s made the President aware of the situation and asked for direction and that ‘Lule’ was constantly trying to position mid-level officials in the Agency in order to “steal” more, ultimately managing one top-level appointment. The suspicion is that Spagnuolo’s deputy, Daniel María Garbellini — who was fired at the same time as the ANDIS chief — is whom he’s referring to. He says he doesn’t want to have to deal with the “mess,” adding almost menacingly that he has text message conversations with Karina Milei about all of this.
The behind-the-scenes connection between the Menem cousins and the suspicious drugmaker named in the scheme is the aforementioned Kovalivker brothers. Owners of Suizo Argentina, they are distributors of health supplements produced by Gentech, a company owned by the Menems. According to DataClave, a private meeting was held in Martin Menem’s brother’s home in the luxury suburban neighbourhood of Nordelta on the outskirts of Buenos Aires. The Kovalivkers, together with ‘Lule,’ Martín, brother Fernando ‘Tato’ Menem, and Spagnuolo were all said to be in attendance. The circumstances were denounced by an NGO named Arco Social in 2024 in a legal complaint lodged by attorney Alejandro Díaz Pascual.
It’s not the only suspicions of corruption surrounding the Menem family since entering the libertarian sphere of influence. As detailed by Rodis Recalt in a recent cover story for Noticias magazine, the Menem clan have won multiple contracts with the state through a host of companies under their control including for security services and consulting arrangements.
As mentioned at the outset of this column, these “carpetazos” or damaging media operations are part of strategically crafted attacks in the context of a consequential electoral campaign. Initial suspicions would put Santiago Caputo as the main culprit, given his public falling out with Karina and the Menem cousins. At the same time, the way the information leak was structured is reminiscent of the typical carpetazos of the Argentine spy agencies. The SIDE spy agency is under Santiago Caputo’s operational control through the top man, “Number Five,” aka Sergio Neiffert. Within the walls of the Casa Rosada, Caputo is denying involvement and actively worked on the official response to the scandal, together with Karina and Cabinet Chief Guillermo Francos. They were also monitoring the situation in the lower house Chamber of Deputies, where the opposition managed to overturn Milei’s veto of an increase in special funding for the disabled. There are no coincidences.
Whether the leak came from Caputo’s sphere of influence or another place, it hits at the heart of Milei’s anti-“caste” rhetoric. It is also another scandal that paints Karina Milei as greedy and corrupt. The ‘$LIBRA’ cryptocurrency scam continues to reverberate, as judicial investigations in the United States and Argentina rumble on and the opposition attempts to put together an investigative committee in Congress with teeth. It is also another example of widespread corruption in Argentina’s government, arriving hand-in-hand with the contaminated fentanyl scandal. Ariel García Furfaro, the owner of HLB Pharma, the lab at the centre of the furore, was arrested this week together with several family members and top company officials. He’s being investigated for the deaths of nearly 100 people as a consequence of being administered contaminated fentanyl sold by his company and produced by Laboratorios Ramallo. They had multiple contracts with the state and García Furfaro is a longtime Kirchnerite. Thirteen years ago he was helping his father out in their fruits and vegetables shop – from those humble beginnings, they built a small pharma empire. There are serious rumours of ties with drug-trafficking rings. but also of political protection, as García Furfaro’s labs had been controlled by the pertinent regulator and serious infractions.
Corruption has risen as a preoccupation for everyday citizens, but it is still the economy that will determine whether or not Milei is successful in upcoming local elections in Buenos Aires Province and national midterms. Economic success will allow the self-proclaimed anarcho-libertarian to establish a hegemonic control over the ecosystem. Lack thereof will put the focus on other things, including corruption, and society won’t be as tolerant. The President knows that.
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