But that is little consolation for International Business Machines Corp., whose Argentine subsidiary is embroiled in one of the most embarrassing scandals involving a U.S. company to hit Latin America in years. Separately, the U.S. attorney for the Southern District of New York and the Securities and Exchange Commission are investigating whether IBM violated the Foreign Corrupt Practices Act, which prohibits U.S. companies from paying bribes abroad.
Argentine authorities say the money was used as a bribe to secure the huge contract.
The company also continues to face tough questioning. UCR Senator Leopoldo Moreau, for his part, accused James Cheek, the U.S. ambassador to Argentina, of hiding information on the IBM case in order to protect U.S. interests. Until recently, the whole IBM affair had produced no more than legal wrangling and political mudslinging. In August, however, the scandal turned violent when an Argentine journalist who had criticized the U.S. multinational was beaten by three knife-wielding men in the streets of Buenos Aires. So are its allies in the local business community.