World

Argentina's Ex-President Arrested

June 7, 2001 / 11:25 AM EDT / AP

Carlos Menem, the flamboyant former president who helped resurrect Argentina's economy a decade ago, was put under house arrest Thursday as part of an investigation into illegal arms sales.

Federal Judge Jorge Urso ordered Menem held in an investigation into accusations that the former president headed an "illicit organization" that funneled arms to Croatia in 1991 and Ecuador in 1995, despite international arms embargoes on both nations.

It was the first time a former elected civilian president was detained in Argentina. For some observers, the house arrest represented a triumph over corruption for Argentina's beleaguered judicial system.

But the 70-year-old former president, who served for 10 years before leaving office in 1999, professed his innocence and said he was the victim of political persecution.

"I trust in justice," Menem said, mobbed on the steps of the federal courthouse where he was called Thursday to testify in the arms probe.

Menem's defense team said he gave Urso a written statement declaring his innocence, but refused to answer the judge's questions. The judge then ordered his detention.

Hundreds of cheering supporters - bused in from his home province of La Rioja - waved blue-and-white Argentinian flags as he entered the courthouse with his bride of two weeks, Cecilia Bolocco, a former Miss Universe from Chile. Later, he left with Bolocco by a back entrance and was flown by helicopter to a Spanish-style mansion outside the capital ringed by riot police. At no time was he handcuffed.

Prosecutors allege that Menem and his aides organized the sale of 6,500 tons of weapons. Although the arms were officially destined for Panama and Venezuela, they ended up instead in Croatia and Ecuador.

Menem repeatedly has said he did nothing illegal, and his lawyers promised to open what could be a long legal battle intended to clear his name.

In the 90s, Argentina was bound by international agreements to withhold arms from Croatian and Ecuador. The embargo on Croatia stemmed from fighting in the former Yugoslavia, and the one on Ecuador from its brief border war with Peru.

If charged and convicted, Menem could face a sentence of three to 10 years house arrest. Under Argentine law, people 70 years or older cannot be imprisoned.

The former president was expected to remain at the suburban mansion north of Buenos Aires until the judge decides whether to formally charge him.

Many of his supporters wore white T-shirts and baseball caps that read, "Menem, Argentina loves you."

"I believe in Menem like I believe in God, I have that much faith in him," said Aldo Peralta, 62, who traveled 12 hours by bus from Cordoba province to be at the demonstration. "He's innocent. They haven't proven anything against him."

Three former Menem advisers have been arrested under Urso's investigation.

On Wednesday, Gen. Martin Balza, the highest-ranking army officer during most of Menem's presidency, was arrested and accused f organizing the illicit arms sales.

Last month, former Defense Minister Antonio Erman Gonzalezwas detained in the case. On on April 7, former presidential aide Emir Yoma, the brother of Menem's ex-wife Zulema Yoma, was detained, and is awaiting trial on charges of complicity in the alleged arms ring.

Menem closed out his presidency amid accusations of corruption involving aides. But none of the accusations had touched Menem personally.

During his presidency, Menem brought Argentina back from the brink of economic chaos through free-market reforms that included toppling trade barriers and selling off hundreds of state companies. He helped tame inflation that had been as high as 200 percent a month and calm the volatile currency by pegging it to the dollar.

Menem also reopened ties with Britain after Argentina lost a 1982 war for control of the Falkland Islands.

Since leaving office, Menem has led his Peronist Party and talked unabashedly about his desire to run for president again in 2003.

Political commentator James Neilson called the house arrest a "triumph for justice and the law."

"It shows that nobody is above the law," Neilson said. "It is very significant because it could mean that Argentina is crossing some kind of Rubicon, and will now take corruption more seriously."

Menem's legal troubles will make it difficult for him to campaign for a third presidency, Neilson added.