Swiss court: hand over banking info to Argentina

BELLINZONA, Switzerland

Switzerland should hand over banking documents to Argentina in a million-dollar corruption probe linked to former President Carlos Menem and French defense company Thales, a Swiss court ruled Monday.

The Swiss Criminal Court rejected a series of appeals by unidentified companies and account holders who allegedly were part of a wide corruption scheme ranging from Swiss bank accounts to offshore companies and foundations in Liechtenstein.

The decision can be appealed to Switzerland's highest court.

Argentine investigators believe the Argentinian subsidiary of Thales paid $25 million in bribes to government officials to win a 1997 contract to run Argentina's radio frequency, cell phone and cable television spectrums.

The Argentine government subsequently scrapped the 15-year deal -- worth $500 million -- after a report by Argentina's auditor general found that irregularities in the contracting process had cost the state $300 million.

Menem was charged with administrative fraud in March because of the alleged irregularities.

Argentine Federal Judge Norberto Oyarbide said Menem must have known of the irregularities, as his office oversaw the distribution of broadcast frequencies.

Menem has consistently denied corruption allegations, saying they are politically motivated.

Switzerland's top criminal court rejected the account holders' claim this was a political offense and therefore Switzerland should refrain from giving legal aid to Argentina.