A son of one of Argentina’s most notorious contractors has admitted his part in a road-building fraud and is going back to prison. On Thursday 12 November 2026, a federal court in Buenos Aires sentenced Martín Báez to three years for defrauding the state.
The case is the second chapter of “Vialidad”, the corruption trial that ended in the conviction of former president Cristina Kirchner. For readers following Argentine politics and the country’s court-driven clean-up of public contracts, it shows how the case keeps producing rulings years later.
Key Facts
—Power Index Argentina ranks 4th of 14 in The Rio Times Latin America Power Index, with 60.2 points (November 2026 edition).
—Who. Martín Báez, son of jailed contractor Lázaro Báez, and five co-defendants admitted fraud.
—What. Three years in prison; combined term seven years and nine months; asset forfeiture of about US$443 million.
—When. Federal Oral Court No. 2 in Buenos Aires ruled on Thursday 12 November 2026.
—Next step. The judge must still carry out the forfeiture, and the amount will be updated then.
An abbreviated trial, agreed in advance with prosecutors, closed one more chapter of Argentina’s biggest public-works corruption case.
What Happened
Federal Oral Court No. 2, with judge Andrés Basso, approved a deal reached by prosecutors, the defences and Argentina’s financial intelligence unit, the UIF (Unidad de Información Financiera, the state anti-money-laundering agency). All six defendants admitted responsibility and accepted the agreed penalties.
Martín Báez received three years for fraud against the public administration. Added to the six years and six months he already had for money laundering in the “Ruta del Dinero K” (the “K Money Trail”) case, the judge fixed one combined term of seven years and nine months.
The other five defendants are Julio Enrique Mendoza, Carlos Joaquín Alonso, Jorge Eduardo Gregorutti, Sergio Hernán Passacantando and Fernando Javier Butti. The court treated Báez as a necessary participant who helped the family’s construction firms bid for, sign and carry out the contracts.
Why It Matters
The Vialidad case concerns public road contracts in Santa Cruz province, in Patagonia, between 2003 and 2015. Prosecutors argued that a system steered the work to companies linked to Lázaro Báez, a close business associate of the Kirchner family, and drained state funds.
The first trial ended in December 2022 with a six-year sentence for Cristina Kirchner, which the Supreme Court later upheld. This second stage targeted mid-level officials of the national roads agency, Vialidad Nacional, and the businessmen behind the firms.
The judge also ordered forfeiture of ARS 684,990,350,139.86 (about US$443 million at a market rate of about ARS 1,545 per US dollar on 13 November). The order forms part of the asset recovery tied to the first stage of the case.
What to Watch Next
The court must now carry out the forfeiture, and the sum will be updated for inflation when it does. Any appeal by the defendants or prosecutors would show whether the deal holds, although all six accepted their penalties.
What Is Not Known
The full text of the ruling was not available to us, so the exact timeline for carrying out the forfeiture is unclear. It is also unknown which assets will be seized and how much of the sum can be recovered.
What It Means for You
For investors and companies working with Argentina’s public sector, the ruling is another sign that old contract cases can end in large asset claims. Anyone bidding for state work there should expect close scrutiny of ownership and payments.
Frequently Asked Questions
What is the Vialidad case?
It is a corruption case about public road contracts in Santa Cruz province from 2003 to 2015. The first trial convicted Cristina Kirchner and Lázaro Báez.
What is an abbreviated trial in Argentina?
The defendants admit the facts and accept penalties agreed with prosecutors. The judge approves the deal instead of holding a full trial.
How long will Martín Báez serve?
He received three years for fraud. With his earlier money-laundering sentence the combined term is seven years and nine months.
Sources: Centro de Información Judicial (Argentina’s court news service); Unidad de Información Financiera; Argentina’s Justice Ministry. More in our Argentina coverage and on Kirchner’s Hotesur appeal.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error