Techint Executive Confirms Near $1 Million Cash Payment to Former Argentine Official
A former administrative director of the Techint Group testified that he delivered nearly $1 million in cash to a government official in 2008, highlighting enduring legal scrutiny over corporate payments during Argentina’s Kirchner administrations.
A former top executive at the Techint Group confirmed in a Buenos Aires court on Tuesday that he oversaw cash deliveries totaling nearly $1 million to a former Argentine government official. Héctor Zabaleta, the conglomerate’s former administrative director, stated he made six payments in pesos during 2008 to Roberto Baratta, then a senior aide to Federal Planning minister Julio De Vido.
Testifying in the ongoing ‘Cuadernos’ corruption trial, Zabaleta said the payments were executed on the instructions of Luis Betnaza, Techint’s former institutional relations director. He confirmed that the transactions matched records kept by Baratta’s former driver, which documented official visits to the company’s Puerto Madero offices.
The executives framed the transfers not as bribes for public works contracts, but as emergency payments linked to the 2008 nationalization of the Sidor steel plant in Venezuela. Betnaza testified that Techint sought the Kirchner government’s intervention to repatriate workers and their families after Caracas seized the facility, which was then controlled by the Techint Group.
Zabaleta recounted that Baratta objected to receiving pesos instead of dollars, warning, "You’re going to have to give me dollars because if not, I’ll cut off the gas at your Campana plant." In response, Zabaleta requested the peso equivalent of $1 million from a company fund containing dividends to facilitate the handover in an underground car park.
Both Zabaleta and Betnaza were initially prosecuted over these transfers, but judges dismissed the cases against them and Techint chief executive Paolo Rocca in 2020. The courts concluded the payments occurred under emergency conditions, separating them from the broader allegations of systematic bribery for infrastructure contracts that define the case.
Market and Governance Implications
Despite the previous dismissals, the renewed courtroom scrutiny underscores the persistent legal and reputational risks for major corporations operating in Argentina. The distinction between illicit bribes and improper emergency payments remains a critical governance issue for investors assessing historical liabilities in emerging markets.
The court warned the witnesses about the risk of self-incrimination during Tuesday’s hearing, though both answered questions from prosecutors and the Financial Information Unit. Zabaleta maintained he did not know why Baratta was being paid, while Betnaza stated he only authorized the request due to the perceived emergency.
