Javier Milei seeks fresh start after Argentina corruption scandal
by Banyeliz Muñoz · UPIJune 29 (UPI) -- Argentine President Javier Milei reshuffled his Cabinet after Chief of Staff Manuel Adorni resigned amid a judicial investigation into alleged illicit enrichment and concealment of assets.
After nearly four months of political pressure on the government, the resignation of Adorni, one of Milei's closest allies, could provide the administration with an opportunity to move beyond a political crisis that dominated the public agenda and overshadowed much of the government's policy initiatives.
The scandal involving the former chief of staff includes the alleged purchase of real estate under suspicious circumstances, expensive home renovations paid for in cash and an official trip to New York with his wife. Weeks before stepping down, Adorni publicly acknowledged that he had omitted $500,000 from his financial disclosure statements.
For months, Milei rejected opposition calls to remove Adorni from office, arguing that doing so before a judicial ruling would amount to "convicting an innocent person."
As the investigation continued, the case remained at the center of Argentina's political debate. Opposition lawmakers pursued multiple oversight measures in Congress while the government repeatedly faced questions about Adorni's situation, pushing economic announcements into the background.
Against that backdrop, Milei opted for a leadership change. On Sunday, he appointed Diego Santilli as chief of staff in an effort to rebuild the administration's political relationships and strengthen its negotiating position with Congress and provincial governors.
Political analyst Cristián Buttié, director of consulting firm CB Global, told UPI that the sustained attention surrounding the Adorni investigation eclipsed some of the economic achievements the administration wanted to highlight, including slowing inflation and lower country risk.
Buttié said Santilli's appointment gives the government an opportunity to relaunch its agenda without bringing in an outsider because Santilli was already one of the Cabinet's most politically experienced members.
He also said the new chief of staff could help deepen ties with PRO, Argentina's main center-right political party.
"PRO may no longer have enough votes to compete for the presidency on its own, but it still has an electoral base that could prove decisive if Milei hopes to win in the first round next year," he said.
Political analyst Carlos Fara, president of consulting firm Fara Veggetti, agreed that Adorni's continued presence had become a political liability for the government.
"The administration paid a very high price for a problem that was unrelated to its governing agenda. The Adorni case began in March, but the government had already been losing public support since December after the elections," Fara said.
He attributed that decline to public expectations that economic conditions would improve more quickly.
Even so, Fara described Santilli's appointment as the best available option because he is "a political professional with extensive experience and broad respect."
He added that the government's political recovery will depend largely on the performance of the economy.
"The government needs to reconnect with the public's concerns. It needs an agenda more focused on jobs and productivity. Investment is important, but by itself it is not enough to regain the political initiative," he said.
By appointing Santilli, Milei is seeking to move beyond one of the most significant political crises of his presidency while restoring the chief of staff's office to its traditional political role. The administration hopes the move will strengthen governance, advance its reform agenda and begin laying the groundwork for the 2027 presidential election.
The chief of staff is one of the most influential positions in Argentina's political system.
The office coordinates the work of the national government, oversees Cabinet ministries and serves as the executive branch's primary liaison with the governors of Argentina's 23 provinces, the Autonomous City of Buenos Aires and Congress, where the chief of staff is required to present regular reports on the administration's performance.
After his appointment was confirmed, Santilli wrote on X that leading the Cabinet represents "the greatest challenge" of his political career.
"I believe in collective projects, not individual ones. That is why I will work as part of a team alongside an outstanding Cabinet led by President Javier Milei, with a clear vision and the determination needed to finally pull Argentina out of the hole it was left in," he wrote.