July 22, 2007
Argentina’s Economy Minister in cash scandal: the $64,000 question

Argentina’s economics minister, Felisa Miceli, resigned last week after “after a prosecutor ordered her to testify about $64,000 in cash that was found in a bag in her office bathroom, the government said.”

Miceli claimed that her brother had lent her the money as a down-payment on a house. But, according to Reuters, the prosecutor investigating the case “traced the cash back to a bank he said the money came from, but failed to find any accounts there linked to Miceli or her brother. He also found there was no record of a withdrawal for that amount of money at the bank.” Meanwhile Pravda reports that

Part of the money –100,000 Argentine pesos- was sealed and registered by the Argentine Central Bank. As the Central Bank of Argentina does not have retail customers, it became clear that her brother could not have lent the money to her.
Posted by Lawrence H. White at 04:43 PM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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