Lavagna reports 20% overpricing in highway projects under Kirchnerism during 'notebooks' trial

Former Economy Minister Roberto Lavagna testified in Argentina's "notebooks" corruption trial, revealing significant overpricing in the national highway administration during the Kirchner government. Lavagna stated that in 2005, under President Néstor Kirchner, an internal report found average overpricing of around 20% in the Vialidad sector.

Lavagna explained that concerns were initially raised by the World Bank, which was funding highway projects. Representatives from the international organization expressed discomfort with the execution of certain programs and hinted at an impending investigation into suspected irregularities. This prompted Lavagna to order an exploratory internal report.

The report, conducted between May and August 2005, uncovered doubts about potential cartelization of contracts and the aforementioned overpricing. Based on these findings, Lavagna escalated the issue, requesting a more thorough investigation by the Competition Defense Commission to preempt any findings from the World Bank.

Lavagna recalled mentioning these suspicions of cartelization and cost overruns at a 2005 meeting of the Argentine Construction Chamber. He stated that his comments were poorly received, with one chamber official warning him about the implications of his remarks.