Scandal hits Milei’s sister and shakes Argentine government on the eve of the elections

A corruption scandal involving the Argentine government’s summit is shaking President Javier Milei’s mandate amid investigations into an alleged bribery scheme at the National Agency for Disability (andis). The case, which came to light with the leakage of explosive audios, points to the participation of Karina Milei, the president’s sister and one of the government’s most influential figures, in a bribery collection scheme of pharmaceutical companies.

The head of the National Agency for Disabilities (andis), Diego Spagnuolo, was fired after the release of the audios in which a voice attributed to him cites the participation of Karina Milei, sister of president and secretary general of the presidency, and Undersecretary Eduardo “Lule” in the scheme, which could generate up to $ 800,000 per month (about $ 4.3 million). The largest slice, between 3% and 4%, would be destined for Karina Milei.

“They are stealing. You may pretend you don’t know, but don’t play this problem for me. I have all Karina’s Whatsapp,” says Spagnuolo in one of the hollow passages.

Argentine authorities have not yet confirmed the authenticity of the recordings, but opened an investigation.

Operations and Seizures

Argentina justice reacted quickly. On Friday (22),
16 Searches on properties linked to those involved, including the headquarters of Andis, the Suiz Argentina company and Spagnuolo’s residence. During operations, the authorities seized
Cell phones, a money counting machine and $ 266,000 in cash ($ 1.5 million).

Federal judge Sebastián Casanello, responsible for the case, prohibited the departure of the country’s investigated. At least five people are already grounded, including Spagnuolo and entrepreneurs linked to the Argentine Switzerland distributor, accused of brokering contracts.

Karina Milei, the “guardian of access” to the president

Karina Milei, secretary general of the presidency, plays a central role in the government. It is considered the main interaction between the president and the other members of the executive – few manage to speak directly to Javier Milei without passing through it. Its influence is so striking that it is common to see it next to the brother in all public appearances.

Despite the serious accusations, she did not comment directly on the case. President Javier Milei, who so far avoided commenting on the scandal, appeared in public next to his sister on Monday (26/8), smiling and showing support. In a speech, he criticized the press and Congress, but did not question the complaints.

The chief of staff, Guillermo Franco, said the president is “quiet” and suggested that this is an “political persecution” of the opposition. Martín Menem, president of the House of Representatives and cousin of Lule, defended the accused: “I put my hands on fire by Lule Menem and Karina Milei,” he said, calling the audios “monumental political operation” of Kirchnerism.

Economic and electoral consequences

The crisis has increased political instability in the country, with reflexes in the financial market. The Argentine scholarship reference index fell 4% on Monday (25), after accumulating 3.8% drop in the previous week. Argentine weight also lost almost 3% compared to the dollar. These market numbers are due to the government’s loss of capacity to be popular enough to continue implementing their brutal reforms. Milei’s confrontation strategy requires him to be very popular – and this is at risk, in the opinion of the financial market.

The scandal occurs at an extremely delicate moment for the Malei government. Argentina is preparing for the October legislative elections, in view of a referendum on its austerity agenda and market reforms. In addition, in two weeks, the election will be held for the governor of the province of Buenos Aires, the largest electoral assembly in the country.

Opposition parliamentarians already ask for the call for the Minister of Health and the creation of a CPI to investigate the case. Political wear is evident: the impact of the scandal directly from the anti -corruption and moralist discourse that led Milei to power in 2023, under the promise of fighting the “political caste”.

If Karina is considered guilty, Milei loses not only her main counselor, but also the symbol of her supposed honesty.

What is at stake

Karina Milei is considered the most influential figure around the president, controlling access to Casa Rosada and participating in all official agendas. If the accusations advance, the government may lose not only its main political arm, but also the anti -corruption flag that boosted Javier Milei to power.

This was possible thanks to the fact that the President changed a decree – signed by Mauricio Macri in 2018 – that prevented the appointment of family members for public positions.

Javier Milei calls his sister “The Chief” (in the male) and repeated several times that “without her, none of this would exist.” Those who know Milei say she is the “great architect” behind the ultra -right project. She is her main strategist, counselor and the central figure of her political grouping, La Libertad Avanza.

The case goes beyond a complaint of corruption. He exposes the contradictions of Milei’s political model, which combines economic ultraliberalism with a familiar and uncommon power. At the same time, it puts the forecasts of its reformist agenda into an increasingly resistant congress – as the recent cancellation of one of its vetoes by parliamentarians showed.

Now the question that hangs in the air is: How far does Milei’s loyalty go to the sister? What’s more, will the Argentine electorate, tired of scandals, forgive the man who promised to “clean the rot” – even if she is inside her own family?

While the court continues to investigate, the electoral clock runs. And the near future of the Milei government may depend on the answer to these questions.