A political firestorm erupted in Argentina after opposition lawmaker Marcela Pagano filed criminal charges against key members of President Javier Milei’s government, accusing them of misappropriating nearly 4 billion pesos in public funds. The dispute, which has escalated into a bitter war of words and legal threats, centers on the whereabouts of surplus money from a July debt auction. Pagano's allegations have drawn sharp responses from Economy Minister Luis Caputo and Milei himself, who took to social media to attack her credibility and accuse her of spreading falsehoods. The controversy began during a press conference when Santiago Bausili, head of the central bank, was asked about the location of leftover funds from a July 29 debt auction. His response, suggesting the money could be found somewhere, though he did not specify, was seized upon by Pagano as evidence of potential wrongdoing. She promptly filed formal complaints with federal courts, charging Bausili, Caputo, and other officials with fraud, breach of duty, and embezzlement. In a strongly worded message on X, she declared that the money belonging to Argentine citizens should not be hidden or managed secretly, demanding transparency from those in power. Caputo responded swiftly, denying any wrongdoing and asserting that the funds were fully traceable. He warned Pagano that he would file a defamation lawsuit against her and even hinted at donating any damages awarded to a public welfare institution. Officials within the Ministry of Economy explained that the 3.8 billion pesos in excess had been deposited into accounts held by commercial banks, including Banco Nación, to prevent a sudden influx of cash from spiking interest rates. This explanation, however, did little to calm Pagano, who continued to push for accountability. President Milei entered the fray directly, retweeting Caputo’s comments and calling Pagano a “serial liar.” He further attacked her by suggesting that her dishonesty was unsurprising given her background as a journalist. His remarks drew immediate retaliation from Pagano, who launched a blistering verbal assault on both Caputo and Milei. She called Caputo a “thief,” a “scoundrel,” a “traitor,” and a “lowlife swindler,” accusing him of stealing gold during the previous administration. Turning to Milei, she labeled him a “megalomaniac” and claimed his medications combined with “Mango Loco” no longer worked, while accusing him of destroying 300,000 small businesses. She added that power had corrupted him and exposed his true nature, warning that his delusions posed a danger to the nation. The conflict between Pagano and Milei dates back to their time in the same political movement, La Libertad Avanza. Pagano joined the legislature in 2023 as one of the party’s prominent figures in Buenos Aires province, citing pressure from official advertising in the media as a reason for her political shift. Their relationship began to deteriorate earlier this year during a scandal involving the Political Trial Committee, where Pagano was elected chair with support from then-block leader Oscar Zago. However, the move was rejected by House Speaker Martín Menem, sparking institutional turmoil. Recent tensions have intensified amid broader challenges facing Milei’s government, particularly as his wife, Karina Milei, seeks to consolidate influence over provincial politics. Meanwhile, the dispute over the missing funds continues to dominate headlines, with both sides exchanging increasingly harsh rhetoric. Pagano’s accusations have not only targeted Caputo but also raised questions about the transparency of financial management under Milei’s administration. The situation has deepened divisions within Argentina’s political landscape, with supporters of both sides rallying behind their respective leaders. While the government insists the funds were properly accounted for, Pagano and her allies remain unconvinced, pushing for independent audits and greater oversight. As legal proceedings unfold, the battle over the 4 billion pesos has become emblematic of the broader struggle for trust and accountability in public institutions.
★
Keep the news honest.
ObjectiveNews is reader-funded and ad-free — we show you the bias instead of hiding it. Support independent journalism for €4/month.
Become a Supporter
AR
