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« A Labor Of Love | Main | Lewis Sentencing Moves Forward »
Friday
Aug312012

‘Boudougate’ and the Expropriation of the Money-Machine

As the blockbuster corruption trial of former president Fernando de la Rua captivates the nation, Argentina's Congress approved a controversial bill on August 22 to take over the scandal-plagued currency-printing company Valores de Sudamerica (CVS).

Arguing the need for monetary sovereignty, President Cristina Kitchner’s nationalization proposal faced loud opposition. Her bill was called an attempt 'to cover-up the most scandalous corruption case in the last nine and a half years.'

In the ‘Boudougate’ affair, as it's known in local press, Vice-president Amado Boudou and Ricardo Etchegaray, Head of the Federal Administration of Public Income (AFIP), are under investigation for 'illegal enrichment, illegal handouts and misuse of public funds.'

CVS was formerly known as Ciccone Calcografica, founded in 1951 by brothers Alberto and Nicolas Ciccone. Their company grew during Argentina's military rule but declared bankruptcy in 2010. The Old Fund rescued CVS and Old Fund's president, Alejandro Vandenbroele, became chairman of CVS.

In February 2012, Vandenbroele’s ex-wife revealed to the press that Argentina's Vice President Boudou was also a part-owner of CVS.

According to The Argentina Independent, 'supporters of the new law believe the government makes a valid point with the expropriation' to preserve Argentina's currency-printing capability.  

_____________

Maria Dolores Hernandez J. is a researcher for ethiXbase.

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