Global Policy Forum

By Bill Cormier

Former president Carlos Menem, whose 10-year rule of Argentina brought economic transformation as well as a swirl of corruption scandals, was placed under house arrest Thursday as part of a probe into alleged arms trafficking. Menem was ordered detained by Federal Judge Jorge Urso, who is investigating accusations the former president headed an "illicit organization" that funneled arms to Croatia and Ecuador in 1991 and 1995, despite international arms embargoes on both nations.

Menem's arrest marked the first time an elected civilian president in Argentina had been detained during a period of democratic rule. Three other heads of state were detained during coups. For some, the house arrest of the charismatic former president was seen as a triumph for Argentina's beleaguered judicial system in the fight against corruption.

But the 70-year-old former president, who left office in 1999, said he was the victim of political persecution. He vehemently professed innocence. "I trust in justice," Menem said from the steps of the federal courthouse where he was called Thursday by Urso to testify in the arms probe. Hundreds of cheering supporters - bused in from his home province of La Rioja - waved blue-and-white Argentina flags as he entered the courthouse with his bride of two weeks, Cecilia Bolocco, a former Miss Universe. 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 in Croatia and Ecuador. Menem has said repeatedly he did nothing illegal and his lawyers promised to open what could be a long legal battle intended to clear his name. In the 1990s, Argentina was bound by international agreements that enforced arms embargoes on Croatia and Ecuador. Ecuador and Peru waged a brief border war in the 1990s, and the embargo against Croatia stemmed from fighting in the former Yugoslavia.

Menem will be under house arrest during any prosecution. If charged and convicted, he could face a sentence of three to 10 years. But under Argentine law, people 70 years or older can request to serve their sentences under house arrest. Menem's defense team said he gave a written statement to Urso on Thursday but refused to answer the judge's questions. After he was flown to the white turreted mansion in a suburb north of Buenos Aires, dozens of riot police kept back drum-beating supporters at the mansion. The former president was expected to remain at the house until the judge decides whether to formally charge him.

Many of his supporters at the courthouse 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. Menem has insisted the sales were done "absolutely legally."

Urso's probe has led to the recent detention of three other former Menem advisers. Menem, who served two consecutive terms that ended in December 1999, closed out his presidency amid swirling accusations of corruption involving aides in his administration. But none of the accusations had touched him personally.

During his presidency, Menem was a flamboyant figure who danced tango at state dinners and drove fast cars. More importantly, he also 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 also reopened ties with Britain after Argentina lost a 1982 war for control of the Falkland Islands. He tamed inflation that had been as high as 200 percent a month and brought on years of high growth. His government calmed the volatile currency by pegging it to the dollar. 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 in Argentina." "It shows that nobody is above the law," said Neilson. "It is very significant because it could mean that Argentina is crossing some kind of Rubicon, and will now take corruption more seriously."