Argentina’s government is grappling with a widening bribery investigation after leaked audio recordings appeared to show Diego Spagnuolo, the ousted head of the National Disability Agency (ANDIS), discussing kickbacks on medical-supply contracts and naming Karina Milei, the president’s sister and chief of staff, as a beneficiary. Judicial raids on Spagnuolo’s home and other properties are under way; President Javier Milei has now acknowledged the tapes and said he will sue his former adviser, while officials insist the recordings have not been authenticated. Financial markets responded swiftly. International dollar bonds slid as much as 10%, with the 2038 note dropping to 67.37 cents on the dollar, and the S&P Merval equity benchmark fell nearly 5% on 25 August before extending losses to an 11-month low. The peso weakened almost 3% to about 1,356 per U.S. dollar, and JPMorgan’s country-risk index widened to 829 basis points, levels last seen before April’s removal of currency controls. The administration moved to shore up confidence. In a closely watched auction on 27 August the Treasury rolled over ARS7.6 trillion (US$5.6 billion) in peso debt—114.7% of maturities—by accepting yields of up to 75.7%. Finance Minister Luis Caputo said the result prevents excess liquidity that could pressure the exchange rate ahead of provincial elections on 7 September and nationwide mid-term polls on 26 October. Political tensions are rising in parallel. While campaigning in the Buenos Aires suburb of Lomas de Zamora on 27 August, Milei’s open-top caravan was pelted with stones and bottles, forcing security teams to evacuate the president, his sister and lawmaker José Luis Espert. No one was injured and police detained two suspects. Government spokesmen blamed Kirchnerist opponents for the incident, underscoring the increasingly volatile backdrop as the corruption probe and economic turbulence dominate the electoral season.