Former Argentine Economy Minister Domingo Cavallo said in court testimony that a one-time presidential aide was the beneficial owner of a Swiss bank account holding funds diverted from a $250m IBM Corp contract to modernize a state-owned bank (CI No 2,982). Cavallo also said four former directors of state-owned Banco de la Nacion Argentina received funds raked off from the contract, which is the subject of an Argentine criminal investigation. Cavallo blamed Argentina’s presidential chief of st aff Alberto Kohan for turning a blind eye. Kohan in turn says Cavallo was responsible. Cavallo also spoke of a meeting between President Menem, Kohan and himself to discuss the scandal, a meeting that both Menem and Kohan flatly deny ever took place . The statement is the first by a former or current government official to acknowledge that bribes may have been paid to secure the $200m contract for IBM.
