Libertarian congressman José Luis Espert has withdrawn his candidacy for Buenos Aires province national deputy in the upcoming October midterms. The decision comes in response to growing criticism over his connections to Fred Machado, who is accused of drug trafficking in the United States.

“For the sake of Argentina, I am stepping down,” the economist said via a post on X.

Despite insisting that the accusations were part of an political “operation” supported by a “relentless media trial,” Espert argued that he couldn’t allow the political project that he was part of and had “worked so hard on to fall apart.”

The economist emphasized that the upcoming midterm elections offer the country a chance to “turn the page on its troubled history.” He reiterated, as he had done during several interviews over the week, that he has “nothing to hide” and that he would prove his “innocence before the courts.”

“Time will show that we are not all the same”, he emphasized.

Milei’s reaction

President Javier Milei quickly showed his support for his leading candidate following Espert’s resignation.

“We will not allow a malicious operation to put him at risk,” Milei wrote in a post on X. He added that the government is devoted to “changing the country” and that that mission “comes before individuals always.”

“Even if they want to smear us, we are not the same. Freedom advances or Argentina retreats.”

In an interview he gave on Sunday evening, the president stated that he did not ask Espert to step down, as he knew that he was being subjected to a political “operation.”

“I will not compromise my ethical and moral values for the sake of expediency.” 

A poll conducted by consulting firm Zuban Córdoba after the scandal surfaced revealed that 56.7% of Argentines believe the ruling party will lose in the upcoming legislative elections. The survey added that Espert had a negative image of 71.4% — only 26.4% of positive image — and that 62.9% thought he should withdraw his candidacy.

The Machado accusations

Espert’s campaign became the subject of intense scrutiny last week when U.S. court documents confirmed that he had received US$200,000 from Machado, who is accused of leading an international drug trafficking and money laundering operation. Machado has been detained in Chubut province since 2021 while facing an extradition request from the United States.

The economist’s refusal to address the accusations caused the scandal to grow, as even government officials like Chief of Staff Guillermo Francos and Security Minister Patricia Bullrich called on Espert to speak out.

During a television interview last Wednesday, the economist declined to say whether he had received the money. He went on to say that he would not “play along” with former Peronist presidential candidate Juan Grabois, who filed a who filed a legal complaint against Espert in this matter.

Hours later, however, Espert confessed that he had received US$200,000 from Machado. He claimed that he received the money in February 2020 as a down payment for private consulting work he was set to do for one of Machado’s companies. The commission ultimately fell through due to the pandemic.

Espert also confirmed that he had taken several trips on Machado’s private plane, but that he had only seen him once during a book presentation in 2019. Faced with leaked images showing him at Machado’s pool, however, Espert acknowledged that the video was “probably accurate.”

This inconsistency raised further doubts about Espert. In fact, a poll revealed that 68.6% rated Espert’s defense as “not credible.”