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This scandal is considered one of the main reasons for the resignation of the former vice president [[Carlos Álvarez (Argentine politician)|Carlos Alvarez]], on October 6, 2000. This episode caused a break in the political coalition between the Radical Party and the [[FREPASO|Frepaso Party]], which altogether formed the alliance called [[Alliance for Work, Justice and Education]]. Furthermore, this rupture exacerbated the [[1998–2002 Argentine great depression|crisis that de la Rua’s government]] was already facing.
== History ==
=== Bill ===
In January, 2000, De La Rua sent to Congress a labor reform bill that included among other items<ref>{{Cite web|date=2000-01-20|title=La reforma laboral llegó al Congreso|url=https://www.lanacion.com.ar/politica/la-reforma-laboral-llego-al-congreso-nid2215/|access-date=2021-06-02|website=www.lanacion.com.ar|language=es}}</ref>:
* An extension of the employment probation period
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In 2003 the parliamentary secretary [[Mario Pontaquarto]] declared in an interview, that he took part in an operation to bribe senators through the [[Secretariat of Intelligence|Secretariat of Intelligence (SIDE)]]<ref>{{Cite web|title=Noticias {{!}} Mario Pontaquarto celebra la Ley del Arrepentido|url=https://noticias.perfil.com/noticias/general/2016-10-21-mario-pontaquarto-celebra-la-ley-del-arrepentido.phtml|access-date=2021-06-02|website=noticias.perfil.com}}</ref>. The journalist, Maria Villosio, said that allegedly the negotiations to buy senators’ votes took place in the president’s office and the president himself had said “Deal with [[Fernando de Santibañes|Santibañes]].” who at that time was the head of the SIDE<ref>{{Cite web|title=Página/12 :: El país :: “De la Rúa dijo arréglenlo con Santibañes”|url=https://www.pagina12.com.ar/diario/elpais/1-29273-2003-12-13.html|access-date=2021-06-02|website=www.pagina12.com.ar|language=es}}</ref><ref>{{Cite web|last=Clarín.com|date=2004-01-09|title=Hoy indagan a Santibañes, ex jefe de la SIDE|url=https://www.clarin.com/ediciones-anteriores/hoy-indagan-santibanes-ex-jefe-side_0_BJMr5RJRYe.html|access-date=2021-06-02|website=www.clarin.com|language=es}}</ref><ref>{{Cite news|title=Ante la Justicia nunca admitieron haber visitado juntos a Santibañes - LA NACION|language=es-AR|work=La Nación|url=https://www.lanacion.com.ar/politica/ante-la-justicia-nunca-admitieron-haber-visitado-juntos-a-santibanes-nid564433/|access-date=2021-06-02|issn=0325-0946}}</ref>.
== Trial ==
In December, 2003, Mario Pontaquarto was [[Subpoena|subpoenaed]] by Judge Norberto Oyarbide, who was then replacing the assigned Judge Canicoba Corral. Pontaquarto stated that he transported 5 million dollars taken from the Secretariat of Intelligence’s fund to Senator Emilio Cantarero’s house. This amount of money was supposed to be divided among four senators in exchange for positive votes to pass the law. In addition, Pontaquarto declared that Senator Jose Genoud and Minister of Labor Alberto Flamarique, allegedly also received money<ref>{{Cite web|title=Página/12 :: El país :: El juicio de la Banelco más famosa|url=https://www.pagina12.com.ar/diario/elpais/1-200937-2012-08-13.html|access-date=2021-06-02|website=www.pagina12.com.ar|language=es}}</ref><ref>{{Cite web|date=2003-12-13|title=Un ex funcionario confesó cómo pagó los sobornos en el Senado|url=https://www.lanacion.com.ar/politica/un-ex-funcionario-confeso-como-pago-los-sobornos-en-el-senado-nid555026/|access-date=2021-06-02|website=www.lanacion.com.ar|language=es}}</ref><ref>{{Cite web|date=2018-01-20|title=Wayback Machine|url=https://web.archive.org/web/20180120070051/http://edant.clarin.com/diario/2005/08/02/um/Fallo.doc|url-status=live|access-date=2021-06-02|website=Poder Judicial de la Nacion}}</ref>.
In 2005, this case was declared a [[mistrial]]. Daniel Rafecas was assigned as the new judge for this case and a new investigation began. Rafecas indicted the former parliamentary secretary Pontaquarto, President de la Rua, former Secretary of Intelligence Santibañes, former Minister of Labor Flamarique, and the Senators Alberto Tell, Remo Costazo, Ricardo Branda, and Augusto Alasino.
In 2016, after an investigation of the movement of money from the Secretariat of Intelligence accounts, it was determined that there was no evidence that support Pontaquarto’s version. All the people that were indicted were acquitted by Judges Miguel Pons, Guillermo Gordo, and Fernando Ramirez because they considered that it was not possible to prove that a [[felony]] had been committed<ref>{{Cite web|last=de 2016|first=4 de Enero|title=Coimas en el Senado: 15 años después, se cerró la causa|url=https://www.infobae.com/2016/01/04/1780671-coimas-el-senado-15-anos-despues-se-cerro-la-causa/|access-date=2021-06-02|website=infobae|language=es-ES}}</ref>.
== Repeal ==
The infamous Banelco Law was repealed in 2004 by the government of president [[Néstor Kirchner|Nestor Kirchner]], who introduced another law to replace it. The new law received 215 votes in favor, 23 against, and 1 abstention. This time the law passage had the consent of the main unions of the country<ref>{{Cite web|date=2004-03-03|title=Sancionó Diputados la ley laboral del Gobierno|url=https://www.lanacion.com.ar/politica/sanciono-diputados-la-ley-laboral-del-gobierno-nid578108/|access-date=2021-06-02|website=www.lanacion.com.ar|language=es}}</ref>.
== References ==
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