Secret audios, leaks and spying claims: Bribery scandal engulfs Argentina’s Milei

Argentina has been gripped by a growing bribery scandal implicating close associates of its President Javier Milei, the libertarian economist who rose to power by railing against the country's entrenched political elite.

At the center of the allegations is Milei's sister and presidential secretary general, Karina Milei, accused of profiting from kickbacks in contracts at the National Disability Agency.

The controversy, unfolding weeks before October's midterm elections, threatens to erode the outsider image that helped propel Milei to the presidency. He has denied the claims.

Leaked recordings spark uproar

The scandal erupted when streaming outlet Carnaval published secretly recorded audio of former disability agency chief Diego Spagnuolo, a Milei ally, describing bribes allegedly funneled to Karina Milei and senior aide Eduardo "Lule" Menem in exchange for pharmaceutical contracts.

The recordings suggest Karina Milei received 3–4% of contract values, with individual payments reaching $800,000. "Javier, you know they're stealing, that your sister is stealing," the voice alleged to be Spagnuolo's says in one clip.

Within hours, Milei dismissed Spagnuolo. Federal judges ordered raids on offices linked to him and drug distributor Suizo Argentina.

Government hits back

For nearly a week, Milei avoided commenting before denouncing the leaks as "lies." His government claimed the recordings were manipulated and politically timed to damage his movement in Buenos Aires provincial elections.

As Milei publicly defended his sister, fresh recordings surfaced of Karina Milei in her Casa Rosada office, discussing long working hours and urging unity among aides. The government branded the leaks as illegal espionage, raided Carnaval offices, and seized journalists' devices. A federal judge barred media from publishing further recordings from inside the presidential palace.

Press freedom groups condemned the moves. Reporters Without Borders called the court order "one of the most serious threats to press freedom since the return of democracy."

Diplomatic twist

The affair briefly escalated into a diplomatic spat after officials hinted at possible Russian involvement in the leaks. The Russian Embassy dismissed the claim, calling it "irrational and destructive."

Karina Milei under scrutiny

Known as "El Jefe" — "The Boss" — Karina Milei is her brother's closest confidant and political gatekeeper. A former cake decorator and tarot reader, she now controls presidential appointments, scheduling, and party leadership.

Analysts say her central role makes the scandal particularly damaging. Public anger has mounted, with protesters forcing her to leave recent campaign events and viral chants branding her a "big bribe-taker."

This is not her first controversy. Earlier this year, she was linked to the promotion of a cryptocurrency scheme that collapsed, causing investors massive losses. She denied wrongdoing.

Monica de Bolle of the Peterson Institute said Karina had become Milei's "Achilles' heel."
"Pragmatism here would require him to remove Karina," she said. "Nepotism doesn't serve leaders well in the end."