Argentina arrests former ARSAT head Facundo Leal in corruption probe

Argentina's federal prosecutors have intensified the ARSAT corruption case by detaining former ARSAT and ORSNA chief Facundo Leal. A search of his residences uncovered more than US$2.5 million in cash, several narcotics (cocaine, ketamine and synthetic drugs) and electronic equipment that will be examined as evidence.

Court‑ordered excerpts of instant‑message chats from the logistics firm Argentina Logistic Services (ALS) show company officials urging Leal to "add more items" to a contract with ARSAT, inflating the agreement with services that were never provided. Prosecutors allege the scheme involved directed procurement, over‑payment, and possible kickbacks, with ALS allegedly bribing ARSAT officials through travel vouchers and other benefits. The investigation now covers alleged contract manipulation, misuse of public funds and potential drug‑related offenses.

The case, originally sparked by alleged theft of ARSAT’s fiber‑optic equipment, has expanded to examine a broader pattern of irregularities in state‑owned telecom contracts under the Milei administration. Leal remains in pre‑trial detention while judges assess the origins of the seized money and the relevance of the seized narcotics to the primary corruption inquiry.