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November 14, 2025
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  • Lázaro Báez lost the facilities of the Austral Constracciones, and the Santa Cruz government kept them
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Lázaro Báez lost the facilities of the Austral Constracciones, and the Santa Cruz government kept them

deercreekfoundation November 14, 2025
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The vast site, located along National Highway 3, the main access to Rio Gallegos, is home to hundreds of machines, trucks and vehicles bearing the logo of Austral Construciones, the flagship company of Lázaro Báez, which went bankrupt in 2018 and was used to receive 51 irregular bids by the Kirchner government. Now, the 13 hectares of land is It no longer belonged to Christina Kirchner’s former business partner, but to the Santa Cruz government.

It was a symbol of the times. For 12 years, Austral’s only customers were nations. The system was established in May 2003, just 12 days before Néstor Kirchner became president of the country. Since then, the path followed by the company first founded by Lázaro Báez has been an illustrious one. According to Justice, the company became the prime contractor for public road construction.

The Santa Cruz government maintained the Austral construction facility.

During the Kirchner administration, Austral Constrazione was awarded 51 contracts worth 46 billion pesos, but the judicial system says the bidding was fraudulent. Additionally, the Court of Justice found that the company was used to launder US$55 million over three years.

The construction company, which is under investigation for money laundering, false billing, tax evasion and fraud, has been inactive since Cristina Kirchner left Casa Rosada in 2015, and after Mauricio Macri’s government’s decision to terminate the last 24 remaining road contracts, Austral has been unable to accept new tenders and a judicial investigation has left it with no operating margin.

That path was inevitable. The company went bankrupt. Within the framework of this process, one of the 90 properties owned by the construction company was put up for auction.

There were few bidders at the public auction. The Santa Cruz government offered US$2 million.

The Santa Cruz government maintained the Austral construction facility.The Santa Cruz government maintained the Austral construction facility.

A short time later, the court notified the state of its ruling. Just this Thursday morning, Governor Claudio Vidal took possession of the Austral lands.

When you enter the place,State officials found themselves with tons of boxes of documents, abandoned and rusting facilities.. That location was the center of a major corruption operation that led to the first conviction of Christina Kirchner and the former owner of a construction company.

The Santa Cruz government maintained the Austral construction facility.The Santa Cruz government maintained the Austral construction facility.

From abandoned and dismantled vehicles that were not auctioned to recover some of the funds claimed by creditors of over P2.2 billion, to work tools scattered in a large warehouse, Governor Vidal found his place completely degraded. “I feel so sad and angry because everything that we see being demolished and looted today is the result of corruption. Santa Cruz is the cradle of corruption and they can’t deny it. Things are visible.” held.

Once signed, Governor Santa Cruz conducted a thorough tour with state officials. They observed the current status of the acquired items, including warehouses, offices, warehouses, road machinery, cars, and trucks. “In this sector, a progress of unused inputs and abandonment was discovered,” state officials reported.

The Santa Cruz government maintained the Austral construction facility.The Santa Cruz government maintained the Austral construction facility.

Projects where Austral Construcciones operated, The goal is to create an industrial shopping center that will house the Santa Cruz headquarters itself. Various factories are interested in participating in the project, including balance feed factories, door factories, laboratories and drug stores.

The story of the Austral Construcciones is a story that is not yet completed in Justice. Within the framework of bankruptcy, various auctions of various company assets have become possible. All auctions were conducted by the Directorate General of Judicial Auctions, which is dependent on the Supreme Court. 24 apartments in Coghlan were put up for auction, and all sold for more than the base price ($73,000, $99,000, $120,000, up to $130,000). This is just one example of the assets in Austral’s name that Baez lost.

symbol of corruption

The company Báez is accused of was allegedly used to channel state funds, as demonstrated in a case investigating the direction of public works projects by the Kirchner administration.

This cycle of “casual” employment increased businessman K’s wealth by 12,127% between 2004 and 2015, acquiring assets for $205 million. As a result, Austral Constracciones’ assets increased by 42,678%, and the charges from the trial that sentenced Cristina Kirchner, Lázaro Báez, José López and Nelson Periotti to six years in prison for maladministration prejudicial to the state are upheld.

The Santa Cruz government maintained the Austral construction facility.The Santa Cruz government maintained the Austral construction facility.

But the case known as “Money Route K,” for which Baez is serving a 10-year prison sentence, also found that the company was used to launder $55 million between 2010 and 2013, when the company had already established itself as a prime contractor for public road construction in Santa Cruz soil.

From 2009 to July 2013, the businessman convicted of money laundering owned the Alto Calafate Hotel, Las Dunas Inn (originally owned by Lázaro Baez, who (sold to the Chinel family and later leased), and paid the former president P27,592,110 through Valle Miter for operating expenses of La Aldea de El Chalten, which was built on land in the capital. Name of the group owner. Austral.

The Alto Calafate rental included another important value. In 2010-2011, 50% of the tourist complex’s turnover was thanks to Austral Construcciones and six other Baez companies, which rented rooms and meeting rooms there.

Property of Grupo Austral Construcciones belonging to the Government of Santa CruzProperty of Grupo Austral Construcciones belonging to the Government of Santa Cruz

A central fact must be added to these businesses. Three of Christina Kirchner’s hotels were managed by Valle Mitre SRL, which is owned by Baez.

Where did Valle Miter and Báez’s income from other companies come from? Austral Constructions. The company that received the road contract provided funds to other companies in the group and then “issued checks for Christina Kirchner’s hotel,” prosecutors said. There was an internal loan of P71 million from the construction company, and Cancu y Costilla, another company in the Baez group, also contributed P1.8 million.

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