Argentina’s political landscape was rocked this week by a scandal at the heart of President Javier Milei’s administration, as leaked audio recordings surfaced allegedly implicating high-ranking officials in a sweeping bribery scheme. The fallout has been swift and dramatic: Diego Spagnuolo, until recently the head of the National Disability Agency and a close confidant of the president, was removed from his post by presidential decree following the explosive revelations. The timing could hardly be worse for Milei, who is already grappling with mounting political and economic headwinds ahead of a critical electoral test in October.
The controversy erupted on Tuesday, August 19, 2025, when journalists Mauro Federico and Ivy Cángaro released a series of recordings in which a voice—reportedly Spagnuolo’s—accuses Secretary General Karina Milei, the president’s sister, of accepting bribes from medical and pharmaceutical companies in exchange for lucrative state contracts. The audios further allege that Eduardo “Lule” Menem, Karina’s right-hand man in the Presidency Secretariat, is also involved. According to the recordings, the pair take home "between half a million and 800,000" dollars every month, representing 5% of the bribes funneled through medical companies, with Karina Milei herself allegedly pocketing 3% of the total. The drug company Suizo Argentina is named as the intermediary responsible for collecting and distributing these illicit funds.
In one particularly damning segment, the voice believed to be Spagnuolo’s claims, "I spoke with the president. I told him they are stealing. He can’t play dumb with me. If there’s any ruckus and they don’t take care of me, I have all of Karina’s WhatsApps." The implication is clear: not only was the president informed of the alleged corruption, but his inner circle was orchestrating the scheme. The recordings, reportedly made in a public setting like a bar or restaurant, also reference a July 2024 interview between Spagnuolo and journalist Alejandro Fantino, in which Fantino hinted at Menem’s involvement in corruption and cautioned Spagnuolo against becoming a political scapegoat.
Presidential spokesman Manuel Adorni wasted little time in announcing Spagnuolo’s dismissal, posting on X (formerly Twitter) that President Milei had acted "in light of the opposition’s political manipulation in an electoral year." The move was made official on Thursday, August 21, with the publication of a presidential decree in the Official Gazette. Alejandro Alberto Vilches, the Ministry’s current Secretary of Health Management, has been tapped to take over the agency and conduct a “deep audit” of its operations.
The government’s rapid response has not quelled speculation or concern. Chief of Staff Guillermo Francos confirmed that a judicial investigation is underway but was careful to hedge, saying he could not verify whether the audios were authentic. "I wouldn’t set myself on fire in public for any official," Francos remarked, though he added that he believes in the innocence of Karina Milei and Menem. The administration’s stance, at least outwardly, is one of denial and damage control. A source within the ruling La Libertad Avanza (LLA) party, speaking to the Herald, candidly admitted, "In theory, we were the champions of morality, and then this nonsense comes out. I think it will have some repercussions, and if this happened on the third day of the campaign, I don’t know what will happen next." The same source revealed the party’s internal strategy: "Outwardly, we are going to deny everything and feign insanity."
The scandal comes at a particularly fraught moment for Milei’s administration. On Wednesday, August 20, opposition lawmakers in Congress delivered a stinging rebuke by rejecting Milei’s vetoes on multiple spending bills, threatening the president’s prized primary budget surplus. According to Bloomberg, this fiscal setback was compounded by fresh economic data showing that Argentina’s economic activity contracted for a second consecutive month. Meanwhile, a liquidity squeeze sent interest rates skyrocketing to record highs as the government scrambled to shore up the peso.
One of the most immediate political flashpoints is a bill granting increased funding for people with disabilities. The Lower House recently voted to overturn a presidential veto on the measure. The bill now moves to the Upper House, where a two-thirds majority is required for final repeal. The timing of this vote is critical, as it comes just weeks before the pivotal Buenos Aires election in October—a contest widely seen as a referendum on Milei’s leadership.
The roots of the current crisis trace back to earlier allegations of corruption involving the National Disability Agency and Suizo Argentina. In August 2024, lawyer Alejandro Díaz Pascual filed a criminal complaint accusing the agency of making direct purchases with Suizo Argentina for nearly 30 million pesos (about US$23,000) without adhering to the required tendering procedures. The new audio leaks have resurrected and amplified these concerns, giving the opposition fresh ammunition as the country heads into a contentious campaign season.
For President Milei, the convergence of scandal, legislative defeat, and economic turbulence presents a formidable challenge. The libertarian leader has staked his presidency on fiscal discipline and anti-corruption rhetoric, promising to root out the very kinds of practices now alleged within his own administration. The political stakes could hardly be higher: as one LLA insider put it, "If this happened on the third day of the campaign, I don’t know what will happen next."
Yet the president’s allies remain defiant, at least in public. The administration has characterized the scandal as a politically motivated attack orchestrated by the opposition in an election year, and has moved quickly to install new leadership and promise a thorough audit. Whether these measures will be enough to reassure voters—or to contain the damage as investigations proceed—remains to be seen.
As Argentina barrels toward a crucial election, the coming weeks promise to test the resilience of Milei’s government, the credibility of its anti-corruption pledges, and the patience of a public weary of political intrigue and economic hardship. The outcome will likely reverberate far beyond the halls of government, shaping the nation’s trajectory at a critical juncture.
