MercoPress. South Atlantic News Agency

Skanska's bribes scandal shakes Kirchner government

Skanska's top officials have been indicted on fiscal fraud

Argentine president Nestor Kirchner admitted that it's possible that other officials of his administration could be involved in the “Skanska-Gate” scandal involving alleged bribes in public works contracts, but insisted it was basically “a corruption case in the private sector”.

"It's still a corruption case belonging to the private sector which could have the participation of some official, but it's not the administration that is involved", said Kirchner in a rare interview with a local Buenos Aires broadcasting station. In the interview he was asked about the judicial inquiry into the alleged bribe payments by the Swedish company Skanska, in the framework of a private bidding process dating back to 2005, when the expansion of a gas pipeline in the central province of Cordoba. Skanska-Gate so far has cost the removal or resignation of three Kirchner administration officials who have been summoned to court for having allegedly received bribes from the Swedish contractor according to recorded tapes in possession of the magistrate and excerpts of which have been published in the Buenos Aires press. The tapes record dialogues between top former Skanska and government officials. "It's a hard core corruption case among private citizens, which could have some government officials involved", insisted Kirchner. "Let's hope it remains that way. The court will rule, but with the alleged officials outside of government" said Kirchner adding that "it's impossible to know what thousands of civil servants are doing" and at the same time "defend the existence of a transparent government and state". Kirchner a week ago fired Enargas (regulator) watchdog head Fulvio Madaro and Banco Nación holding trust director Néstor Ulloa after Federal Prosecutor Carlos Stornelli told the government that the two were involved in the Skanska case, both in the awarding of the contract and the financing. Earlier this week Public Works Under-Secretary Raúl Rodríguez resigned becoming the third government official to leave his post. However Mr. Rodriguez depends directly from the all powerful Planning Minister Julio de Vido one of President Kirchner's closest aides and the man behind the public bid for the government funded natural gas projects. Members of the opposition are demanding De Vido also be investigated about possible links with the alleged bribes. The Swedish contractor has already admitted making improper payments but alleged it ignores who received the bribes. Several former Skanska's top officials have been indicted on fiscal fraud for having used false invoices from non existent companies, totaling over 5.5 million US dollars.