What is known about scandal that shakes the Milei government

Low audios associate Karina Milei, sister and right -hand man of Argentina’s president, the bribery scheme in the purchase of medicines for people with disabilities. Casa Rosada has not yet spoken about it.

Two months from legislative elections in Argentina, Javier Milei’s government is threatened by a new scandal, with its closest circle of closest assistants implicated in a supposed corruption scheme.

The case came to light last week, when Argentine newspapers published hollow audios attributed to the then head of the National Agency for Disabilities (andis), Diego Spagnuolo, Milei’s friend and personal lawyer.

In the audios, Spagnuolo points to the president’s sister and right -hand man Karina Milei as one of the main beneficiaries of a bribery scheme in drug purchases for people with disabilities, and accuses President Milei to know about the corruption scheme.

“They are frauduming my agency,” he says. “They are stealing. You may pretend you don’t know, but don’t play this problem for me, I have all Karina’s Whatsapp.”

According to the audios, whose authenticity has not yet been confirmed by the court, Karina-who is secretary general of the Argentine presidency and, in practice, divides the position with his brother and whistles in the decisions of Casa Rosada-and the Government’s Undersecretary of Institutional Management, Eduardo “Lule” Menem, would receive bribes from the pharmaceutical industry in exchange for overpriced contracts for the supply of medicines to the public network.

Scheme would yield up to $ 800,000 in bribes

The bribe charged by Karina and Menem would be 8% of contracts with the government, and the deal would yield between $ 500,000 and $ 800,000, and Karina would have most of the money – between 3% and 4%.

Menem – who is the cousin of the mayor, Martín Menem – was appointed as the main operator of the scheme, with the support of entrepreneurs linked to the distributor Suizo Argentina, who brokens the sale of drugs to the state.

In another audio, Spagnuolo would have complained that Karina and Milei would not have acted to curb public money deviations. “They didn’t fix anything,” says the audio.

The case was reported by the Argentine press on August 20, and launched an unexpected crisis in the government.

Hours later, lawyer Gregorio Dalbón, who represents former President Cristina Kirchner (2007-2015)-Milei’s rival-denounced Spagnuolo to justice.

Already the next day, Milei dismissed the assistant and announced an intervention NA andis by the Ministry of Health. Another name removed from the agency was director Daniel Garbellini, appointed as Lim da andis with entrepreneurs.

Last Friday (22/08), Argentine authorities did a search and seizure operation at the headquarters of Andis and Argentina.

At the time, 266,000 dollars were seized in cash with one of the representatives of Argentina, Emmanuel Kovalivker. His brother, Jonathan, who was considered a fugitive, performed on Monday to the authorities.

Four cell phones were also collected, including Spagnuolo’s. The devices are analyzed by experts to confirm or refute accusations of corruption.

Milei Silencia

President Javier Milei has not yet commented on the case, but posed smiling next to his sister on Monday (25/08), in the first public appearance after the complaints, during an event with entrepreneurs.

He even spoke at the time, without directly commenting on the accusations. He only spoke of “liars and low” journalists and accused opponents in the parliament of wanting to “overthrow the country.”

Karina is also silent.

Already Eduardo Menem, who spoke only this Monday (25/08), questioned the authenticity of the audios and denied having knowledge or involvement in irregularities.

“I know the work of this government against corruption and I do not doubt the integrity of any of the mentioned employees,” said Menem, assigning the complaints to opponents Kirchnerist. The message, posted on X, was replicated by Karina and Milei.

Also on Monday, the mayor, Martín Menem, defended the pair and suggested that the case is a frame. “I put my hands on the fire for them,” he told an Argentine TV.

Scandal bursts in a delicate time for the government

The complaint against Milei’s close auxiliary circle comes at a delicate time for the government, which has seen its popularity fall in recent weeks – currently in 41% – and has faced a series of defeats in Congress, with reversal of public spending cuts.

The scandal can also sprinkle in the October 26 legislative elections – faced as a referendum on Milei’s austerity agenda – and in the government of Buenos Aires, in two weeks.

In addition to the alleged NO andis deviations, the government has already been scratched by its involvement with the cryptocurrency $ Libra – personally promoted by Milei before and that caused thousands of buyers to damage – and for allowing entrepreneurs to enter the country with baggage that were not submitted to customs inspection.

Originally published by DW on 08/26/2025