Argentina’s federal court expanded a corruption inquiry into the National Disability Agency (ANDIS) after leaked audio recordings purportedly captured its former director, Diego Spagnuolo, detailing a kickback scheme tied to public purchases of medicines. Judge Sebastián Casanello ordered at least 15 raids, froze safety-deposit boxes and barred Spagnuolo, businessman Jonathan Kovalivker and others from leaving the country. Spagnuolo, fired last week, allegedly said a share of the illicit payments reached Karina Milei, President Javier Milei’s sister and chief of staff, and adviser Eduardo “Lule” Menem. Both Karina Milei and Menem denied wrongdoing, describing the tapes as an opposition ploy ahead of 7 September provincial elections and the October midterms. Opposition lawmakers nonetheless sought to summon the presidential entourage and Health Ministry officials to Congress. The president avoided addressing the allegations during public appearances on Monday, telling supporters in Junín that political adversaries were trying to sow chaos. Financial markets reacted sharply. The S&P Merval index in dollar terms slid almost 5%, while Argentine ADRs and sovereign bonds fell as much as 10%; the 2038 dollar bond touched a four-month low near 67 cents. The peso weakened close to 3% to 1,356 per U.S. dollar, pushing the country-risk premium toward 800 basis points as investors questioned the administration’s capacity to press ahead with its reform agenda. Seeking to stabilise liquidity and contain pressure on the currency, the Central Bank for the second time this month raised reserve requirements, adding 3.5 percentage points from 1 September and allowing banks to meet the new threshold with Treasury securities from this week’s auction. Regulators also began scrutinising repo and caución markets after overnight rates topped 100% annualised. Officials say the measures are temporary and will ease once what they label the “political risk premium” subsides.