Corruption In Argentina: The Santa Cruz Scandal

According to Transparency International, a global coalition against corruption, corruption is a major threat facing humanity. Corruption destroys lives and communities, and undermines countries and institutions. It generates popular anger that threatens to further destabilize societies and exacerbate violent conflicts.

Every year Transparency International’s Corruption Perceptions Index ranks countries and territories based on how corrupt their public sector is perceived to be. The Corruption Perceptions Index of 2012 ranked Argentina as joint 102nd least corrupt, alongside Gabon and Tanzania, out of 176 countries and territories included in the index. As a comparison, Argentina’s neighbors Chile and Brazil ranked 20th and 69th respectively. The top ranked (least corrupt) countries were Denmark, Finland and New Zealand.

For the last ten years Argentina has been ruled by the Kirchner Family. Néstor Kirchner became president in May 2003 and ruled for four years until his wife, Cristina Fernández de Kirchner, replaced him as president in December 2007. Néstor Kirchner died on 27 October 2010 from a heart attack.

Before becoming President Néstor Kirchner was the governor of a province named Santa Cruz for 12 years, between 1991 and 2003. Santa Cruz, located in the south of the country, is remote and sparsely populated, but rich in oil and gas. During his time in Santa Cruz, Mr. Kirchner developed a tight network of trusted friends, many he took with him to Buenos Aires when he became President where they were dubbed “the penguins”.

In 1992, Governor Néstor Kirchner and then Provincial Deputy Cristina Kirchner intensely and successfully lobbied President Carlos Menem to sell the state oil company YPF. As a reward, in 1993, the federal government paid Santa Cruz Province $654 million (US) in long-outstanding royalties owed by YPF.

Once the funds reached Santa Cruz, and changed from federal funds into provincial funds, Mr. Kirchner immediately expatriated them. Ever since then little is known about what happened to the funds.

Adrian Salbuchi, known for speaking and writing about geopolitics, international relations, political power structures and financial globalization, claims in an RT article that the funds passed through several tax havens including the Cayman Islands. In the article he also mentions that when Néstor Kirchner became President in 2003, he admitted that the funds were deposited with global mega-banks Morgan Stanley in Luxembourg, and UBS and Crédit Suisse in Switzerland; two tax havens known for their strict banking secrecy.

The only legal repercussions from the scandal took place in May 2004 when a civil lawsuit was filed against Néstor Kirchner and his helpers in a Buenos Aires District Federal Economic Crimes Court. Sadly, in July 2005 the case was closed declaring Kirchner and his helpers innocent of any wrongdoing. The decision comes as no surprise when one considers that the judge during the lawsuit was Santiago Maria Losada; Kirchner’s nephew-in-law.

In April 2013 an Argentine TV program, Periodismo Para Todos presented by Jorge Lanata, broadcasted a series concerning a businessman called Lazaro Báez in a multi-million dollar corruption scandal.

Over the last two decades Lazaro Báez has risen from an obscure bank cashier in Santa Cruz to the main public works contractor of Santa Cruz and neighboring provinces after having absorbed the competition. His vast business empire includes interests in the fields of construction, the media and oil exploitation.

Clarin, who owns the TV channel the show aired on, identifies Báez as an “intimate friend” of Nestor Kirchner. Clarin’s allegation has firm roots when the following is considered.

In 2007 Báez purchased a dozen large estates in Santa Cruz which he paid for in cash for a total of $28 million (US). It is alleged that Báez had insider information concerning the land he had purchased as the province intended to expropriate some of the land to build dams for hydroelectric plants. Coincidently, one of Báez’s companies was chosen to build the dams.

Jorge Lanata’s program showed hidden camera footage in which one of Báez ‘s associates, Leonardo Fariñas, admitted to involvement in a money laundering network that handled the proceeds from government corruption, while working for Báez ‘s contractor business.

Leonardo Fariña, working with Báez and the financier Federico Elaskar, sent some $55 million euros belonging to Baez to Switzerland. Elaskar also accused the people working with the businessman of threatening him until he sold his operation, which had been used to carry out the transfers abroad. Fariñá maintained that Néstor Kirchner knew about the operations and that he was Báez’s partner “in everything”.

Later in the TV series Mirima Quiroga, Néstor Kirchner’s private secretary and a very close aid during all his electoral campaigns until he became President, gave testimony of money laundering.

Quiroga declared that ‘bags full of money’ on a weekly basis were received at Government House in Buenos Aires and later flown by Mr. Kirchner’s personal secretary, Daniel Muñoz, to Santa Cruz to be deposited in the vaults especially constructed in the family’s mansion. The money-bag traffic was ‘once or twice’ a week and bills were not counted, “they were calculated by their weight’, according to what Muñoz told Quiroga.

So far, there has been no official reply to the allegations, but a few coarse statements from President Cristina Fernandez’s supporters who claim it is all a political ploy in an electoral year, sponsored by the Clarin media group.

If Clarin’s revelations are true and Néstor Kirchner had links with money laundering the case may revive the unresolved controversy over the source of the Kirchners’ vast personal fortune. President Cristina Fernandez’s tax office records from 2003 declared that she was worth $7 million (ARG pesos), in 2011, tax records declared she was worth $70 million pesos.

Originally posted on The Pianosa Chronicle

March Against Monsanto Buenos Aires Oct-12: Review

The second worldwide March Against Monsanto protest took place on October 12, 2013 to coincide with World Food Day. According to the group Occupy Monsanto over 400 marches were held worldwide.

March Against Monsanto was founded by Tami Canal in response to the failure of California Proposition 37 on November 6, 2012, a ballot initiative that would have required labeling food products made from genetically modified organisms (GMOs).

The first worldwide demonstrations took place on May 25, 2013. On that day I was a member of a group of around 200 that gathered at Plaza San Martin in downtown Buenos Aires. Plaza San Martin is less than a five minute walk away from Monsanto HQ Argentina and after occupying the plaza for most of the day, at dusk the crowd moved to the offices. They had been boarded up in anticipation of the event so protestors got busy with spray cans creating some colorful graffiti. After chanting outside the empty office building for around 30 minutes the crowd began their march towards Plaza de Mayo; Buenos Aires’ main square and home to the Presidential Palace; the Casa Rosada.

Unfortunately, known to all in attendance before the event, May 25 is of great importance in Argentina as it marks the annual celebration of the May Revolution. This year’s celebration was big, with performances by international bands and a speech by President Cristina Fernández de Kirchner. When the March Against Monsanto group got within five city blocks of Plaza de Mayo it began to merge with the May 25 congregation, made up of thousands of people. Our voices were drowned out by the fireworks and general buzz of the masses.

Once we got a little closer to the square an air of animosity could be felt as pro-government supporters became aware of our presence. At one moment a small group of pro-government men stood in front of our group wielding discarded bamboo sticks that had been used as poles for the demonstration’s political flags. Some of the Monsanto marchers reeled back at the sight of the men blocking our way but the men themselves seemed to blend into the crowd and disappear. It felt as if they were ready to strike but had been told that we were not anti-government and did not pose a threat. After the excitement I decided to call it a day.

The May 25 March Against Monsanto was overshadowed by The May Revolution celebrations

Hopes were high for a bigger turnout this time but yet again circumstances did not favor the event.

Firstly, October 14 marks the ‘Day of respect for cultural diversity’ in Argentina resulting in a three-day long weekend. Many residents leave the city on long weekends and the exodus must have affected the turn-out. Secondly, October 12 also marks Columbus Day and March Against Monsanto had to compete with other groups representing indigenous peoples and culture. Sadly, there were less people at the October 12 protest than there had been at the May 25 one.

Unlike May 25 the second event took place outside the Argentine National Congress Palace; an open space at the end of the city’s main avenue, Avenida de Mayo. When I arrived there were around 100 people in attendance, a small folk band was playing and activists were preparing speeches.

I was lucky enough to get the opportunity to speak to a few of the participants.

Luis, 31, from Bilbao, Spain, was attending with a group of friends. Having lived in Argentina for several years Luis has attended political demonstrations against the government during his time in the country but this was his first demonstration against the bio-technology industry. Well informed, Luis, told me about how different European countries dealt with GMO’s and the protection of domestic crops. He was conscience of the food he ate and expressed his concerns with the health risks posed by GMO’s.

Maria Jose, 46, from the countryside between Cordoba and Buenos Aires and has been fighting against Monsanto since 1992. Monsanto is a part of what Maria Jose describes as the destructive model. She is a member of G.R.R. – Grupo de Reflexion Rural – an organization for dialogue and multidisciplinary debate on the impacts of Global Capitalism. Maria Jose is concerned with the soya and corn industries in Argentina which are major contributors to deforestation.

Ayelen, 22, from Villa Gessell is a university student studying social communication. A member of Weychan, an organization that supports Argentine indigenous peoples, Ayelen moved to the city to study but also to participate in political movements. Ayelen attends any demonstration against the ‘extractive model’; where multinationals extract natural resources from developing nations.

Outside the Argentine National Congress Palace, October 12

Another university student I spoke to was Evelyn from Lanus University, Buenos Aires. As a member of her social sciences faculty she discovered that her public university was being funded by Minera Alumbrera; a large mining company, which motivated her to become an activist. Every year the university faculty organizes excursions to La Rioja province to raise awareness concerning the mining industry. In the past the organization has had problems with the police on such excursions as the mining industry does not approve of their actions. Monsanto is just another fight against corporate greed. Her organization, Vision Sostenible, conducts research projects, promotes alternative energy methods and pushes for new environmental laws in Argentina.

The final person I spoke to was Emi, 23, from Buenos Aires. Emi attended the event to support the fight against authority and regularly attends all such events. He describes Monsanto as ‘people who have money and think they can interfere in other people’s lives’. Whilst speaking Emi presents his make-shift stall selling fanzines, independent literature, with libertarian and anarchistic ideology. He is opposed to the bio-technology industry and believes that everyone needs to take care of the world and protect the future. Emi is a supporter of The Sala Alberdi Movement, a community of squatters who have occupied and self-manage the Sala Alberdi building in Buenos Aires.

After finishing my interviews I looked around in the hope that a march would soon begin. Sadly, nothing seemed to be happening apart from a punk band performing some very loud and energetic songs. As my friends and I decided to leave another march was just beginning from another part of the avenue. It was an indigenous march with participants waving colorful Incan flags and playing instruments. I couldn’t help feel that the March Against Monsanto protest could have been a little better organized, much like May 25, the event seemed to lack direction. I do not know if the event eventually began a march of its own of joined the back of the indigenous one.

In conclusion, the Buenos Aires’ March Against Monsanto was small and a little poorly organized but did attract some passionate and serious activists of all ages. Considering that Buenos Aires has a population of nearly 13 million, it could develop into a real example in the fight against Monsanto in South America.

Originally posted on The Pianosa Chronicle