Fausta's Blog

American and Latin American Politics, Society, and Culture

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Argentina: Kirchner’s money laundering investigated

Federal Judge Sebastián Casanello began carrying out raids last week that revealed that Lázaro Báez, Néstor Kirchner’s former associate, may own some 150 properties he did not declare to tax authorities. Another judge and prosecutor opened a new investigation on Cristina Fernández de Kirchner. Meanwhile, Leonardo Fariña declared himself guilty of helping Néstor launder money:

In his first interview since being released from prison in April,Leonardo Fariña said Monday that the late Mr. Kirchner had masterminded a plan to enrich himself and Lázaro Báez by allowing Mr. Báez’s construction company to overcharge billions of dollars in public-works contracts by an average of 20%.

He also alleged Mr. Kirchner’s successor and widow, Mrs. Kirchner, was aware of the plan.

Mr. Fariña, 29 years old, said he began working with Mr. Báez in March 2010 and audited the contractor’s books. Guillermo Marijuan,the prosecutor overseeing the case, has said the court is trying to corroborate Mr. Fariña’s claims.

So far, Cristina has not been charged.

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Argentina: Leonardo sings

No, not the late Leonardo Favio (the singer/film director), but Leonardo Fariña, associate of Lázaro Báez, who claims Báez and Ernersto Kirchner conspired to steal public money.

The WSJ obtained the court testimony:
Testimony Links Argentine Ex-President’s Late Husband With Plot to Steal Millions. Former associate says contractor conspired with Néstor Kirchner to steal federal money

Lázaro Báez, a top government construction contractor and close friend of Mr. Kirchner, plotted with other officials to carry out “a systematic plan to steal money from federal coffers,” according to 85 pages of testimony unsealed by Federal Judge Sebastián Casanello.The accusation by Leonardo Fariña, a former associate of Mr. Báez, could have broad political and legal consequences for Mrs. Kirchner.

Fariña is now under witness protection,

Earlier this week, Judge Casanello indicted Mr. Báez and five othersin connection with allegations that he plotted with federal officials to bilk the state by overbilling hundreds of millions of dollars in public-works projects awarded between 2003 and 2015, when the Kirchners were in power.

Meanwhile, a federal appeals court has urged the judge to try to recover any stolen funds. According to Mr. Fariña, Mr. Báez stored ill-gotten cash haphazardly in places such as his basement cellar, where humidity and mold ruined some of it.

They forgot the DampRid, but the plan rolled right along,

Mr. Fariña said Messrs. Báez and Kirchner organized a five-step plan to defraud taxpayers. The plan allegedly consisted of overbilling public projects, getting paid in advance for doing them, creating fake invoices, bribing officials and laundering the proceeds.

Fariña claims that the late Néstor didn’t quite reveal to Cristina and their son Måximo just how much money was in the cellar. That ought to qualify as today’s Capt. Louis Renault moment.

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