A judicial investigation into the National Disability Agency (ANDIS) has escalated after leaked audio recordings attributed to former agency head Diego Spagnuolo alleged a kickback scheme funneling three percent of medicine contracts to President Javier Milei’s sister and top aide, Karina Milei. Federal Judge Sebastián Casanello has ordered more than a dozen raids, including on executives of drug distributor Suizo Argentina, while Spagnuolo was dismissed from his post and a criminal complaint naming the Mileis and congressional leaders was filed. Authorities reportedly seized cellphones, a bill-counting machine and about US$200,000 in cash during the searches. President Milei rejected the allegations as “all lies” and pledged to sue those involved, publicly backing his sister even as senior officials scrambled to limit the political and market fallout. Argentina’s dollar bonds slid and the peso weakened, pushing the country’s risk premium to roughly 850 basis points. Survey data highlight the damage: a Management & Fit poll found 59.2 percent of respondents believe the corruption claims, and 56.1 percent say the episode erodes confidence in the administration; a separate La Nación survey shows 62.5 percent view the affair as serious wrongdoing. The scandal comes weeks before a pivotal 7 September legislative vote in Buenos Aires province and national mid-terms in October. Milei, who was briefly forced to abandon a campaign motorcade after stone-throwing protesters, has pressed ahead with rallies and sent a bill to Congress to prohibit “unnecessary” money printing and reinforce fiscal balance. Whether these moves can offset the reputational hit from the ANDIS investigation—and its impact on already fragile financial markets—remains uncertain.