New cash scandal rocks Kirchner

A scandal over a businessman carrying a suitcase of cash on a government-hired jet has put Argentina's President Nestor Kirchner…

A scandal over a businessman carrying a suitcase of cash on a government-hired jet has put Argentina's President Nestor Kirchner on the defensive as he tries to help his wife replace him in this year's election.

Claudio Uberti, one of Mr Kirchner's negotiators on energy deals with Venezuela, resigned today after he allowed a Venezuelan businessman carrying almost €580,000 in undeclared cash to travel on a jet hired by Argentine state energy company Enarsa.

The scandal comes a month after Mr Kirchner's economy minister was forced to step down over more than €43,000 found stashed in a bag in her office bathroom.

Under renewed pressure, Mr Kirchner defended his record today.

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"I don't cover up anything. When something happens the people find out about it and we take the appropriate measures. For the first time, Argentina is seriously fighting corruption ... whoever is involved," he said in a public speech.

Opposition politicians, who are struggling in polls ahead of the October 28th presidential vote, ceased on the issue.

"This is from God, I'm super happy. The truth has come out, and it is proof of corruption in this government," leftist presidential candidate Elisa Carrio told La Nacionnewspaper.

First lady Cristina Fernandez de Kirchner, a long-time senator, is running to replace her husband as president and polls show her well ahead of her rivals despite the scandals.