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On the eve of elections in Buenos Aires province, the government of libertarian populist President Javier Milei has been drawn into the biggest corruption scandal of his tenure. Milei’s younger sister, Karina Milei, who serves as secretary-general of the presidential office, has been accused of involvement in kickback schemes tied to state contracts in the medical sphere. Both the government and Milei himself deny the allegations, while Security Minister Patricia Bullrich made the unexpected claim that the scandal was staged as part of an effort to destabilize the government by “people linked to Russian intelligence, with influence in Venezuela.”
In August, journalists with the Argentine outlet Carnaval Stream published an audio recording provided by an anonymous source. The tape features the voice of Diego Spagnuolo, a close Milei associate who headed the Agency for People with Disabilities. In the recorded conversation, Spagnuolo claims that Karina Milei and Deputy Minister of State Administration Eduardo Menem were taking kickbacks on state contracts for the procurement of medicine for disabled Argentines.
According to the allegations, the cost of each contract was inflated by 8%, with 3% going directly to Karina Milei. The scheme reportedly generated between $500,000 and $800,000 a month. On the tape, Spagnuolo is heard saying that the president was aware of the arrangement: “I told him, ‘Javier, you know they’re stealing, that your sister is stealing?’”
An investigation was opened following the leak. Police searched the homes and offices of Spagnuolo and Emmanuel Kovalivker, one of the owners of Suizo Argentina, a company allegedly tied to the scheme. Spagnuolo, once a frequent guest at the presidential residence, was dismissed from his post. Milei later branded Spagnuolo a “liar” and vowed to sue. Karina Milei and Deputy Minister Menem, however, kept their positions, though the government offered no clear explanation for the audio.
On Aug. 29, the same anonymous source sent Carnaval Stream a short clip from a meeting led by Karina Milei in the presidential palace. The tape contained no incriminating details — only her call for unity in difficult times — but it suggested the source may hold additional recordings. The day before, the government obtained a court order banning journalists from publishing any further audio involving Karina Milei, should any new tapes emerge.