President Javier Milei and Argentina’s Supreme Court have approved the United States judiciary’s request to extradite businessman Federico “Fred” Machado so he can face drug trafficking and money laundering charges. 

The decision comes amid a scandal in which deputy José Luis Espert, a close ally of President Javier Milei, pulled out of the upcoming legislative elections after he was found to have ties to Machado, including receiving money from him and traveling in his private plane.

Argentina’s Supreme Court issued its ruling approving Machado’s extradition on Tuesday at noon. Shortly after 3 p.m., the presidential communications team said that Milei had instructed the relevant government bodies to move forward with the request.

“The President of the Nation has instructed the Foreign Ministry, the Legal and Technical Secretariat, and the office of the chief of staff to immediately implement the administrative and diplomatic steps necessary in order to comply with the judicial decision,” the team said in a statement.

“The Republic of Argentina ratifies its commitment to international cooperation in the fight against money laundering, drug trafficking and organized crime, to disband mafias and strengthen both national and transnational security.”

Machado is currently under house arrest in the Patagonian town of Viedma, Río Negro province. The U.S. aims to try him on charges of illicit association, drug trafficking, money laundering and fraud. Eight other people in Texas are also accused of participating in a cocaine trafficking ring.

On Tuesday, Machado spoke about the accusations regarding Espert for the first time. He admitted to giving him around US$150,000 in expenses for his 2019 presidential campaign and an additional US$200,000 as payment for services as an advisor to a mining project in Guatemala. Espert entered the spotlight after documents showing evidence of the US$200,000 surfaced.

“Espert’s screw-up was denying me, not acknowledging me nor saying ‘he lent me a hand,’” Machado told Radio Rivadavia. Machado said he met Espert “by chance” in 2019 and liked the way he spoke about his ideas and work. Espert ran for president that year as part of a small party.

According to Machado, at one point Espert asked him for financial support to cover some campaign expenses. However, he downplayed his role. “It wasn’t like I was paying for Espert’s race. We were just three guys, there was no structure. My help was minimal.”

He said that he paid accommodation and travel expenses for Dick Morris, a political advisor who used to work with Bill Clinton, to come to Argentina for a meeting with Espert.

“US$100 thousand is a lot for a guy who earns US$1,000, but the costs were not that significant,” Machado said. He also admitted to flying with Espert on two occasions and lending him a plane for the campaign. According to the judicial investigation, Espert flew at least 36 times in planes that belong to companies tied to Machado, and they traveled together on five of those flights.

Machado also said his fortune comes from his “hard work” in the aviation industry. 

“In the largest economy in the world, having a private plane is like having a bike. Maybe here in Argentina people don’t get that.”