ARGENTINA: US Complains of Corruption but Won’t Help Courts

By Marcela Valente Reprint | | Print |

Marcela Valente

BUENOS AIRES, Apr 30 1998 (IPS) - US officials warned of the risks of corruption and the lack of independent justice in Argentina this week, bad timing indeed, considering four US-based IBM executives are currently being accused of bribery in the national courts.

The warnings given by the visiting officials thus contrasted the US State Department’s intransigence, backing the IBM executives’ decision not to appear before an Argentine judge, despite receiving three summonses.

In a symposium on civic-military relations held this week in Buenos Aires, US diplomat Thomas McNamara said corruption, both amongst officials and in the private sector, “destroys democracy faster and unerringly than the worst military dictatorship.”

Meanwhile, Jeff Davidow representing the State Department Interamerican Affairs, stated greater future success awaits the nations with transparent legal systems.

Davidow said Argentina was running at a deficit in the battle against corruption, but did not mention the fact that the worst scandal, the IBM case, involved US citizens.

The case before Argentine judge Adolfo Bagnasco alleges the crime took place when the Argentine IBM affiliate won bidding to provide computer services to the State-run Argentine National Bank.

The contract was for a total of 250 million dollars, including 21 million as a bribe for the bank directors.

Early this week, one of the National Bank directors, Alfredo Aldaco, admitted his guilt and promised to return the money he had deposited in a secret Swiss bank account traced by Bagnasco.

Another high-ranking bank official, Genaro Contartese, also said he had received money from IBM. And, when justifying his 1.5 million dollar bank account in Switzerland, he said the US multinational had only wanted him to share their happiness at the closing of the deal.

With these testimonies as proof, Bagnasco warned Thursday that if the four directors of the IBM head office continue refusing to appear before the Argentine courts, he will get an international warrant issued.

Between 1993 and 1994, IBM Argentina had contracts with around 10 official bodies, leading the company ranking of most profitable branches in the second of these years.

This fact was highlighted by the head office itself, which congratulated the performance of then chairman of IBM Argentina, Ricardo Martorana.

Martorano, removed from his post when the scandal burst, has already testified, and this Wednesday he once again named Robeli Libero, Steve Lew, Marcio Kaiser and Peter Rowley, as the US executives involved in the case.

He said these four executives had been aware of the details of the negotiations and had approved all the steps taken. His argument is that they are, therefore, responsible for the crime.

He demonstrated that some of them had even come personally to Buenos Aires to take part in the bidding process.

The four suspects have agreed only to testify under the Treaty of Mutual Legal Assistance signed between Argentina and the United States. Under this agreement, they can testify under oath before a US judge, without having to appear before an Argentine court.

The State Department also responded to Bagnasco in writing stating the treaty authorised the directors of the company to testify in the United States, and that extradition can go ahead only if the Argentine judge can set a proven crime against their names.

Whatever the outcome, US penal law includes punishment for executives from transnational companies who pay bribes to get a contract, even beyond national frontiers.