Judge probing Kirchner-era bribes follows money to private sector

The federal judge investigating a corruption scandal roiling Argentina's political and business worlds has asked internal revenue service AFIP to review the books of companies that have admitted to paying bribes to the planning ministry during the Cristina Fernández de Kirchner government.

According to daily La Nación, which cited anonymous sources in the government, the order from judge Claudio Bonadio means that companies such as the local unit of Spain's Isolux-Corsán and construction firm Iecsa, which have admitted to paying off-the-book bribes to former planning minister Julio de Vido's team, will face tax evasion charges that may reach up to 70% of the value of the kickbacks.

Iecsa was the construction arm of the Socma group of Franco Macri, the father of President Mauricio Macri. The unit was owned by Antonio Calcaterra, Franco Macri's godson and a cousin of the president, who sold it when Mauricio Macri came to power in December 2015 and is now collaborating with the authorities.

Bonadio seeks to determine the origins of the suitcases full of cash that were given to De Vido's number two, Roberto Baratta, according to the La Nación report. The drop-offs and pick-ups of bribes surrounding public works contracts were meticulously detailed by Baratta's driver in eight spiral notebooks discovered by a La Nación journalist, who turned them in to the courts. The notes say Iecsa paid some US$8mn in bribes to Kirchner officials.

According to a ranking provided at the time by De Vido, Iecsa was the third leading state contractor, behind Techint and Electroingeniería. Among other projects, it was part of a consortium with Odebrecht to convert the Sarmiento rail line into an underground line.

Bonadio has ordered the arrest of 16 former officials and business executives, some of whom have admitted to paying bribes and are negotiating plea deals.