Leaked audio recordings link Karina Milei and other top officials to illicit disabilities pharmaceutical purchases, sparking a corruption scandal. Public outrage is escalating as an investigation probes into allegations that President Javier Milei’s sister, Karina Milei, received substantial cash kickbacks from pharmaceutical sales to Argentina’s disability services agency. The corruption scandal has gained significant attention following the release of audio recordings that connect Karina Milei, the presidential chief-of-staff, to financial gains from the nation’s procurement of medicine for disabled individuals. No charges have been filed in the incident; however, the motorcade of the brother-sister duo was targeted with stones and bottles during a campaign event on Wednesday. Three key points emerge regarding the campaign season scandal that has the Argentine populace on edge as provincial and national elections approach:
- What is under investigation?
Leaked audio recordings reportedly show Diego Spagnuolo, the former head of the ANDIS national disability agency, claiming that Karina Milei allegedly receives three percent of his agency’s payments for medicine to the pharmaceutical company Suizo Argentina. In the leaked recordings, a voice purportedly belonging to Spagnuolo states, “Karina gets three percent and one percent goes to the operation.” He asserts that he has notified the President regarding his sister’s purported scheme. “They take half a million or more per month,” the voice continues, apparently noting a monthly take of somewhere between US$500,000 and US$800,000. Following the release of the audio files on August 19, the government subsequently removed Spagnulo from his position “in light of publicly known events.” The alleged scheme reportedly involves Eduardo ‘Lule’ Menem, the nephew of former president Carlos Menem, who served as Argentina’s leader from 1989 to 1999. On Friday, Federal judge Sebastian Casanello authorized 16 raids, which included the residence of pharmacy owner Jonathan Kovalivker. This action follows the arrest of Kovalivker’s business partner and brother, Emmanuel, who was apprehended while trying to escape from police with US$266,000 in envelopes.
- The government’s statements
Karina Milei, known as “El Jefe” or “The Boss” by her brother, has yet to issue a public statement regarding the ongoing scandal that has dominated headlines and sparked a wave of memes across social media platforms. On Wednesday, the president responded to the audio recordings, asserting they were the property of Spagnuolo. He told reporters, “everything he says is a lie; we will take him to court and prove that he lied.” Minutes before the incident, a statement was issued as Milei was compelled to evacuate a campaign rally due to protesters throwing stones at the van he was in. Milei’s spokesperson addressed the allegations on X, labeling them as “political exploitation by the opposition during an election year.” The national legislative elections scheduled for October 26 will place a portion of Congress before voters, serving as a litmus test for Milei’s popularity in the wake of ongoing inflation struggles and a stringent austerity program that has necessitated difficult public spending reductions, particularly affecting individuals with disabilities. In September, local legislative elections are set to take place in Buenos Aires Province, a region that represents over a third of the country’s registered voters.
- Consequences
Markets are reacting unfavorably to the recent turmoil: the Buenos Aires Stock Exchange has seen a decline in recent days, the peso is facing pressure against the dollar, and the country’s risk index – which gauges the government’s borrowing cost in foreign currency – has risen sharply. The scandal emerges shortly after Congress overturned Milei’s veto on legislation that declared a disability emergency and allocated additional funds to the sector, marking a significant political setback for the president and his budget-cutting strategy. In a recent statement, the pharmaceutical company Suizo Argentina asserted that it acted “fully in compliance with current rules and laws,” emphasizing its commitment to working transparently with oversight agencies and the government. While the Kovalivker brothers have remained silent, local media outlets have indicated that they have submitted their mobile phones to the courts.