Buenos Aires, Argentina — José Luis Espert, a member of Argentina’s lower house of Congress who is campaigning for re-election under President Javier Milei’s La Libertad Avanza party, renounced his candidacy on Sunday following allegations that he accepted money tied to drug trafficking.
Late last week, it was reported that in 2019, when Espert was a candidate for president, he allegedly received $200,000 USD from Federico Andrés “Fred” Machado, an entrepreneur wanted in the United States for alleged ties to drug trafficking in Guatemala.
The congressman and economist — whose current term representing the Buenos Aires province in Congress ends in December — announced his resignation on X, saying he was stepping aside “for Argentina.”
“I have submitted my resignation as candidate for national deputy for the province of Buenos Aires, and President Javier Milei has decided to accept it,” Espert wrote, mere hours after denying he would step down.
The former candidate blamed the allegations on “a clearly orchestrated operation by a system that has destroyed Argentina for decades and is sustained by a ruthless media trial against me, to which I will no longer submit.”
“Time will show that all this was a great lie to dirty this electoral process and thus avoid discussing what we Argentines have to do to change the course of our country,” Espert added, alluding to but without naming Argentina’s opposition Judicialist Party.
“To the leaders and fellow travelers of La Libertad Avanza, I say: do not let yourselves be psyched out. The explanations that are needed will be given at the appropriate time and where appropriate,” said the economist and politician.
“Use every second left until the election to explain to Argentines the opportunity we have ahead, that we cannot squander our effort, and that this is the only possible path to recover the future,” Espert concluded.
Espert’s candidacy has been mired in controversy for the past week since evidence surfaced that Machado transferred $200,000 to a Bank of America account belonging to the economist, according to investigations by Perfil and El DiarioAR.
The candidate denied any wrongdoing in a six-minute video posted on social media, in which he admitted receiving the payment as part of his “private activity.” Espert also acknowledged meeting Machado in 2019, when the businessman offered to help promote his then-latest book, A Complicit Society, in his hometown of Viedma, Patagonia.
After admitting he traveled on Machado’s airplane, Espert said he was hired as an economic adviser to the Guatemalan mining company Minas del Pueblo (“Mines of the People”). He said the payment was made even though he was unable to complete the job due to COVID-19 travel restrictions.
The transaction was reported in a court filing by Juan Grabois, who cited documents from the Texas judicial system that allegedly confirm Machado’s payment.
More problems ahead after Espert’s resignation
President Milei praised Espert’s decision hours after saying he would not ask for his resignation, since that would imply admitting guilt.
“The deep change process we are carrying forward is the only thing that matters. We will not allow a malicious operation to put it at risk. This cause is about changing the country,” Milei wrote on X, quoting Espert’s message.
“Argentina always comes before individuals. Ensuring change is more important than any of us. Even if they try to tarnish us, we are not the same. Freedom advances or Argentina retreats,” the president added.
Milei accepted Espert’s resignation after backing him on Friday. Members of La Libertad Avanza — including the president’s sister, Karina Milei — had pushed for his removal, arguing that campaigning with a tainted candidate was a liability.
A poll by Zuban Córdoba, published Sunday morning, found that more than 70% of Argentines have a negative view of Espert, and only 21% believe he is innocent. About 68% said they did not believe his explanation, and nearly 63% said he should step down.
After Espert’s resignation, problems are far from over for La Libertad Avanza in the Buenos Aires province, where the party lost the local election to the Justicialist Party by a 13-point margin in September.
Read more: Javier Milei’s political party suffers first major electoral defeat in Argentina
With the removal of its main candidate, President Milei’s party plans to rearrange its list, moving PRO party member Diego Santilli to the top of the ballot.
Espert’s name, however, remains an issue. It will still appear on election day because of Argentina’s new single paper ballot system. About half of the ballots have already been printed, and reprinting a corrected version to remove Espert would cost an estimated $10 million USD. It’s a difficult proposal to defend, amid Milei’s austerity politics.
Featured image credit:
Image: José Luis Espert and Javier Milei
Author: José Luis Espert on Instagram
Source: José Luis Espert on Instagram
