ByREUTERS

Argentine authorities on Friday raided a series of properties as part of an investigation into an alleged kickback scheme that threatens to embroil top officials, according to local media.

Authorities confiscated cellphones and a cash counting machine in a raid at the home of Diego Spagnuolo, who until this week headed the disability agency, as part of a criminal investigation, media reported.

Milei's government earlier this week fired Spagnuolo "as a preventive measure," it said in a statement posted on X early on Thursday.

Local media published audio recordings earlier this week in which a voice that sounds like that of Spagnuolo can be heard discussing bribery within the agency. No details were given of when or in what context the recordings were made, and Reuters could not independently confirm them as authentic.

In them, Spagnuolo can be heard saying, "They are defrauding my agency." He alludes to Karina Milei, the president's sister and chief of staff, as receiving bribery payments and said he spoke to the president and "they didn't fix anything."

A demonstrator holds a flare during a weekly protest by retirees after Argentine President Javier Milei vetoed a pension increase and a bill strengthening protections for people with disabilities, which lawmakers had passed in July, outside the National Congress, in Buenos Aires, August 6, 2025.
A demonstrator holds a flare during a weekly protest by retirees after Argentine President Javier Milei vetoed a pension increase and a bill strengthening protections for people with disabilities, which lawmakers had passed in July, outside the National Congress, in Buenos Aires, August 6, 2025. (credit: AGUSTIN MARCARIAN/REUTERS)

Milei faces setback in Argentina 

A spokesperson for Milei did not immediately respond to a request for comment. Reuters could not immediately reach Spagnuolo.

Government officials have not confirmed the authenticity of the audios, and the president has not commented publicly on the affair. The chief of cabinet has said that, according to Milei, Spagnuolo had never mentioned the alleged bribery.

The scandal comes at a delicate time for Milei, who has faced a series of legislative setbacks in Congress this week, including an attempt by lawmakers to overrule a presidential veto that had opposed an increase in financial support for disabled people.

The government is gearing up for midterm elections in October, which are largely viewed as a referendum on Milei's austerity agenda and market reforms.

The investigation, ordered by a federal judge, has involved raids on a series of properties, including the disability agency, a pharmaceutical company, and some private homes, according to local newspaper La Nacion.