Congressional candidate José Luis Espert (left), accused of ties with narco-traffickers, with Argentinian President Javier Milei (right) at a political event. Photo: EFE.
The Argentinian parliamentary election campaign has been shaken by a scandal that directly impacts the structure of La Libertad Avanza (LLA), President Javier Milei’s party. The party’s principal candidate for the national Congress from the province of Buenos Aires, JosĂ© Luis Espert, confessed that he received a $200,000 transfer from Federico “Fred” Machado, a businessman currently under house arrest awaiting extradition to the United States on drug trafficking charges. The confession came after the revelations from judicial evidence against Espert.
The crisis erupted following the publication of documents from an ongoing judicial investigation in Texas, USA, implicating Machado in the trafficking of large quantities of cocaine through the fraudulent purchase of aircraft. A Bank of America document showed a $200,000 transfer in 2020 to Espert from a firm owned by Machado, allegedly used as a front for money laundering and trafficking.
En medio de horas adversas para Javier Milei, el mismo saliĂł a respaldar a JosĂ© Luis Espert, primer candidato a diputado de La Libertad Avanza en la provincia de Buenos Aires y protagonista de un fuerte escándalo polĂtico en las Ăşltimas horas por su vĂnculo con Fred Machado,… pic.twitter.com/ln4kQ8yKQ6
— teleSUR TV (@teleSURtv) October 4, 2025
The libertarian economist, whose relationship with Milei has historically been unstable, initially tried to dismiss the accusations as a “dirty war operation” from Pernismo, the left-wing bloc. However, his defense collapsed when media outlets published official records confirming the transaction. Thereafter, Espert changed his story, claiming that the payment was an “advance” for alleged consulting services provided to a Guatemalan mining company, named Minas del Pueblo SA that turns out to be owned by Machado—an income that was never declared to the Argentinian tax authorities.
The case has sparked deep concern in the LLA campaign. The scandal threatens to undermine the far right’s aspirations in Buenos Aires Province in the October 26 legislative elections, a key province where the far right needs to improve its performance if it is to ensure Milei’s government in the coming years. Security Minister Patricia Bullrich, visibly affected, demanded a clear response from Espert, whose candidacy has become a heavy burden for the party.
Despite the seriousness of the evidence and Espert’s previous lies, President Milei has opted for a full and public endorsement of Espert, calling the accusations a “filthy and crude operation orchestrated by Kirchnerism.” This staunch defense, even against the opinion of internal party factions, underscores the ruling party’s desperate need to retain its main candidate in the country’s most populous and politically decisive province.
Another unsettling revelation has added to the already grave situation: Francisco Onetto, the lawyer representing Fred Machado, is the same one defending President Milei’s interests in the $Libra cryptocurrency case.
(Telesur)
Translation: Orinoco Tribune
OT/SC/DZ
