Public anger is intensifying in Argentina as investigators probe whether President Javier Milei’s sister, Karina, received kickbacks from pharmaceutical contracts tied to disability services — a scandal that has rocked the presidency weeks before key elections.
The uproar follows the release of leaked audio files on August 19, allegedly featuring former disability agency head Diego Spagnuolo claiming Karina Milei pocketed 3 percent of agency payments to pharmaceutical firm Suizo Argentina. The voice, purported to be Spagnuolo, suggests the arrangement netted more than $500,000 monthly and says the president was informed of it. Spagnuolo was removed from office shortly after the tapes emerged.
The case also names Eduardo “Lule” Menem, nephew of ex-president Carlos Menem, while raids ordered by Judge Sebastián Casanello uncovered $266,000 in cash as one suspect tried to flee.
Government Response
Karina Milei, who serves as Secretary General of the Presidency, has remained silent. President Milei dismissed the claims as “lies,” promising legal action against Spagnuolo, and his spokesperson called the scandal “political exploitation” in an election year.
The controversy is fueling unrest: protesters hurled stones at the president’s motorcade this week, forcing him to evacuate a rally. Markets have also wobbled, with the peso weakening and Argentina’s risk index climbing.
Political Stakes
The crisis lands as Milei faces legislative elections in October and critical provincial polls in Buenos Aires next month. It comes after Congress overruled his veto of a disability emergency law, handing him a political defeat on one of his most contentious austerity measures.
Pharma firm Suizo Argentina denied wrongdoing, pledging compliance and cooperation with authorities.
