Latest news with #LucindaElliott
Yahoo
27-05-2025
- Politics
- Yahoo
Diego Maradona trial judge stands down amid scandal
By Lucinda Elliott (Reuters) - One of three judges in Diego Maradona's closely scrutinized homicide trial in Argentina resigned on Tuesday amid a scandal triggered by the alleged filming of an unauthorized documentary, bringing uncertainty to the future of legal proceedings. The high-profile trial over the death of soccer star Maradona began on March 11 in the South American country where the World Cup winner is still revered.
The Print
19-05-2025
- Business
- The Print
Phantom cows and missing millions spark financial scandal in Uruguay
The co-owner of one Uruguayan firm that took money from savers to invest in cows has died by suicide. Three companies have gone bust and are under investigation for fraud. She has traveled 600 kilometers (370 miles) from the capital, Montevideo, to find 61 cattle she owns, at least on paper. The missing bovines were part of a 'cow bond' scheme that has collapsed, causing one of Uruguay's biggest ever financial scandals. By Lucinda Elliott ARTIGAS, Uruguay (Reuters) – Sandra Palleiro is on the hunt for her lost cows. The 60-year-old accountant is standing in a muddy field at the end of a farm track in Uruguay's remote border region with Brazil. 'Hello moo-moo! Could one of you be mine?' Palleiro called out hopefully into a paddock in the border region of Artigas, her jeans caked in mud as she approached a wire fence to get a closer look at the cows. Palleiro – like hundreds of other investors – is unable to find the animals she owns or prove they even exist, making them part of a herd of 'phantom cows' that could number over 700,000 head of cattle. So far, the losses have mounted to some $350 million, roiling the stable farming nation, home to just 3.4 million people – but 12 million cows. It has also sent shockwaves through bigger ranching neighbors Argentina and Brazil, which looked to Uruguay's cattle-tracking system as a model and where similar livestock investment schemes operate. In March 2024, Palleiro put her life savings of over $50,000 into the livestock investment scheme offered by a local firm named Conexión Ganadera, lured by promises of fixed 7-10% dollar returns and investment materials with bucolic pictures of brown-and-white Hereford cattle. Savers could own cows directly that would be reared and sold for profit by livestock firms, or take an investment stake in the overall scheme. Palleiro, an urban professional, liked the idea of owning a tangible asset. It seemed a safe bet. She could track the cows via a state-backed online portal – for years an example globally for cattle tracking – which set out breed, age and location. Each cow was supposed to be branded with a symbol assigned by the government and documents listing her assets carried the crest of the agriculture ministry, which oversees the cattle registry. Uruguay's national cattle registry declined to comment on the cases. When she went in search of her cows, Palleiro carried print copies from the cattle registry to see if she could match the 53 tracking numbers linked to this ranch with the tags of the cows staring at her on the opposite side of the fence. Using her smartphone camera, she zoomed in on the tracking numbers pinned to their ears. It soon became clear few of the numbers matched. Then the cows started backing away. She couldn't get close enough. The exercise felt hopeless. 'It feels like falling into a nightmare,' said Palleiro. TESLA CRASH Three of the biggest firms under investigation for fraud are Conexión Ganadera, República Ganadera and Grupo Larrarte, which between them persuaded nearly 6,000 people or investor pools to buy into the program, investing millions of dollars. Similar investment schemes exist throughout South America, in Argentina, Brazil and Colombia. Many are legitimate. Martín Fablet, a local radio presenter in Montevideo, said he invested several times in Conexión Ganadera and other livestock schemes in Uruguay over the past 12 years: 'This system of receiving fixed dollar returns worked fantastically well for at least 11 years. They paid me on time.' The first hint of the scandal at Conexión Ganadera came on November 28 last year, when a Tesla Model 3 car crashed at 211 kilometers per hour in the small central Uruguayan city of Florida. Behind the wheel was Gustavo Basso, one of the co-owners of Conexión Ganadera, which had boomed since opening in 1999. Weeks after he drove his car into a parked construction vehicle, investors started reporting their payments from the cattle scheme were late, and by January the company confirmed it was short of nearly $250 million. A coroner concluded in April that Basso had died by suicide. Conexión Ganadera was one of the three funds that started to warn late last year that they were unable to fulfill obligations to investors. They were short of cash, which they blamed on adverse weather (there had been a drought in 2022-23) and tough market conditions. By late January, investors were scrambling to withdraw savings amid reports of fraud. Some filed suits for fraud, leading to bankruptcy proceedings and an official investigation by Uruguay's Prosecutor's Office for Money Laundering Crimes, which remains ongoing. The prosecutor declined to comment to Reuters. Pablo Carrasco of Conexión Ganadera denies fraud allegations. Lawyers representing Conexión Ganadera said they were unable to comment on legal proceedings until testimony was given in court. Grupo Larrarte's lawyer said the firm was fully cooperating with the authorities. República Ganadera did not respond to a Reuters request for comment. 'MAYBE THE COWS WERE FAKES' Politicians, radio hosts, pensioners and even priests are among the thousands now attempting to recover their savings – and their missing 'phantom' cattle, the number of which is proving hard to pin down. An inventory of the biggest firm, Conexión Ganadera, carried out by a bankruptcy trustee estimated that as few as 70,000-80,000 of the 804,604 cattle the company claimed to manage actually existed. In another court case into fraud allegations, Uruguay's Ministry of Agriculture and Livestock (MGAP) said in March that one of Conexión Ganadera's main cattle holding firms, Pasfer, had only 49 of the 3,740 cows that it put up as collateral to secure a loan. 'We don't know if the cows were ever bought, whether they're alive or dead,' Palleiro said during a drive along country lanes to the Artigas ranch. 'Maybe the cows were fakes, or sold, moved somewhere or their tags were changed.' Victims want to know how authorities failed to spot the problems despite the cattle registry. Three lawyers for victims said it was possible that the government-issued tags were never attached to the animals because the animals were never purchased, and the investments were used for other purposes. Two other lawyers representing investors in bankruptcy and fraud cases alleged that cows owned by investors were sold off illegally, without their consent. Each company was responsible for applying the tags and in-putting data to the national registry. 'The registry reflects what the company provided. The problem is that there was no control over what the company provided,' said one of the lawyers, Nicolás Hornes, who represents 98 victims. Hornes said he went to several farms and found that the number of cattle did not match the registry. Two other investors Reuters spoke to told similar stories of trying to find their cows. Uruguay's livestock ministry did not respond to Reuters questions about whether the registry system failed. COMPANIES UNDER INVESTIGATION An executive from Grupo Larrarte, the first firm to receive formal complaints from investors, is already in prison as part of an ongoing criminal investigation, which is separate from bankruptcy proceedings. Jairo Larrarte was placed in preventive detention by a judge in April for alleged crimes of misappropriation, fraud and issuing bad checks. In a response to Reuters, his lawyer Enrique Möller said that his client had fully cooperated with the authorities and that cattle had already been returned to some investors. República Ganadera filed for voluntary bankruptcy in November, which the courts rejected in March because authorities opened an investigation into the company's accounts. Negotiations with creditors continue and the firm said in a March 25 statement that it was 'prioritizing the best possible solution' for those affected. The company did not respond to Reuters' requests for comment. There are several open investigations into Conexión Ganadera, the biggest of the three. The company's co-owner, Pablo Carrasco, his wife Ana Iewdiukow and Basso's widow, Daniela Cabral, are being investigated for fraud and embezzlement. In February all three were temporarily barred from leaving Uruguay without court authorization and their passports confiscated. Carrasco's lawyer Jorge Barrera said there would be no comment to the media. SNAKE CHARMER Basso, whose high-speed crash presaged the company's downfall, lived in grand style in the city of Florida, which has a small-town feel, home to 30,000 people surrounded by farmland. Fablet, the local radio presenter, said he met Basso some 50 times over the course of a decade, socially and while covering agriculture events for radio. '(Basso) was a snake charmer,' said Fablet, a longtime investor in Conexión Ganadera. 'He could never simply lose $250 million… he could've made a loss, but that money must be somewhere.' Back at the Artigas farm, Reuters drone footage showed around 80 animals compared to what should have been several hundred belonging to Palleiro and other investors. Farmhands at the ranch explained that more animals were out in other fields. Several mentioned delays to salary payments since the scandal broke and they said there was no easy way of checking which, if any, belonged to Palleiro. Palleiro herself was angered at the way the case was hurting so many hard-working Uruguayans. She had at times taken on three jobs to put together a nest egg for her retirement. 'We put in all our savings that cost us a lot of effort,' she said with emotion. 'Now we want justice.' (Reporting by Lucinda Elliott. Additional reporting by Ana Mano in Sao Paulo and Manuela Andreoni in Para, Brazil; Editing by Adam Jourdan and Claudia Parsons.) Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.
Yahoo
25-04-2025
- Business
- Yahoo
Paraguay's soy farmers ride tariff war 'toboggan'
By Daniela Desantis and Lucinda Elliott ASUNCION (Reuters) -For Paraguay's soy farmers and exporters, the global trade tariff war is an unpredictable ride that makes them fear the effects of volatility and also hope for more Chinese demand for South American soy meal and oil. The landlocked country is the world's third largest soybean exporter behind Brazil and the United States, with exporters including Cargill, Viterra, and Bunge. Most of its output goes to crushing plants in neighbors Brazil and Argentina. Farmers have taken a hit from fluctuating prices, partly impacted by the tariff standoff between the United States and global trade partners including major soybean buyer China. "It's like a toboggan ride," Héctor Cristaldo, president of umbrella farming body the Union of Production Guilds told reporters this week, referring to U.S. tariffs that have roiled markets and buffeted grain prices. "We don't know where the market will rebound, and where it will stabilize." A silver lining is a better weather outlook ahead for next season, after dry weather knocked the country's soy harvest down to an estimated 8.5-9 million metric tons in the current season. Late soy is still being harvested. "We are moving from a 'neutral cold' climate condition to a 'neutral warm' one, which could bring a good level of precipitation," Hugo Pastore, CEO of Paraguay's Exporters Association, CAPECO said. Industry sources estimated production of over 10 million tons in the 2025/26 season as rains bring relief to crops - and boost river levels key for transporting the oilseed. U.S. government data forecasts as much as 10.9 million tons. The rise will be a boon for Paraguay, even if planting only starts later in the year. Lower exports in the first quarter - down to 2.2 million tons from 2.5 million a year earlier - have hurt dollar incomes and weakened the local guaraní currency. Authorities have, though, cautioned that market volatility following trade tariff announcements and new European Union regulations could create more challenges. Exporters have until December 2025 - delayed earlier this year until then after lobbying by soybean exporting countries - to comply with new EU rules that all imported soybeans into the economic area be free from deforestation. "We are concerned about tariffs and what happens when these new EU rules come in," Pastore said. Paraguayan farmer Valdecir De Souza, who grows soybeans near Paraguay's border with Brazil, said he was positive due to better rains and could see a silver lining to the trade war. He said it could boost the country's competitive edge, supplying raw beans to others, to then be sent to end markets such as China. Paraguay itself does not have direct trade relations with China due to its decades-long ties with Taiwan. Agriculture analysts said an escalation of the new trade war could direct more Chinese demand to South America over time, as was the case for Brazil in 2018. "We could have a competitive edge, finding new markets for our produce," 58-year-old De Souza said. "I see that on one hand it is quite worrisome... but on the other hand, this might open new doors for our soybeans."
Yahoo
25-04-2025
- Business
- Yahoo
Paraguay's soy farmers ride tariff war 'toboggan'
By Daniela Desantis and Lucinda Elliott ASUNCION (Reuters) -For Paraguay's soy farmers and exporters, the global trade tariff war is an unpredictable ride that makes them fear the effects of volatility and also hope for more Chinese demand for South American soy meal and oil. The landlocked country is the world's third largest soybean exporter behind Brazil and the United States, with exporters including Cargill, Viterra, and Bunge. Most of its output goes to crushing plants in neighbors Brazil and Argentina. Farmers have taken a hit from fluctuating prices, partly impacted by the tariff standoff between the United States and global trade partners including major soybean buyer China. "It's like a toboggan ride," Héctor Cristaldo, president of umbrella farming body the Union of Production Guilds told reporters this week, referring to U.S. tariffs that have roiled markets and buffeted grain prices. "We don't know where the market will rebound, and where it will stabilize." A silver lining is a better weather outlook ahead for next season, after dry weather knocked the country's soy harvest down to an estimated 8.5-9 million metric tons in the current season. Late soy is still being harvested. "We are moving from a 'neutral cold' climate condition to a 'neutral warm' one, which could bring a good level of precipitation," Hugo Pastore, CEO of Paraguay's Exporters Association, CAPECO said. Industry sources estimated production of over 10 million tons in the 2025/26 season as rains bring relief to crops - and boost river levels key for transporting the oilseed. U.S. government data forecasts as much as 10.9 million tons. The rise will be a boon for Paraguay, even if planting only starts later in the year. Lower exports in the first quarter - down to 2.2 million tons from 2.5 million a year earlier - have hurt dollar incomes and weakened the local guaraní currency. Authorities have, though, cautioned that market volatility following trade tariff announcements and new European Union regulations could create more challenges. Exporters have until December 2025 - delayed earlier this year until then after lobbying by soybean exporting countries - to comply with new EU rules that all imported soybeans into the economic area be free from deforestation. "We are concerned about tariffs and what happens when these new EU rules come in," Pastore said. Paraguayan farmer Valdecir De Souza, who grows soybeans near Paraguay's border with Brazil, said he was positive due to better rains and could see a silver lining to the trade war. He said it could boost the country's competitive edge, supplying raw beans to others, to then be sent to end markets such as China. Paraguay itself does not have direct trade relations with China due to its decades-long ties with Taiwan. Agriculture analysts said an escalation of the new trade war could direct more Chinese demand to South America over time, as was the case for Brazil in 2018. "We could have a competitive edge, finding new markets for our produce," 58-year-old De Souza said. "I see that on one hand it is quite worrisome... but on the other hand, this might open new doors for our soybeans." Sign in to access your portfolio
Yahoo
12-04-2025
- Business
- Yahoo
Argentina and the IMF: a troubled history
By Lucinda Elliott (Reuters) - In December 1958, Argentina, battling inflation and weak reserves, agreed a $75-million loan with the International Monetary Fund, its first deal with the Washington-based lender in a record 23 programs totalling $177 billion in agreed funds. On Friday, Argentina got the green light from the IMF board for a new $20-billion program. It is already the IMF's largest debtor, by far, and the recipient of the most IMF bailouts in history since it joined in September 1956. The latest program may help Argentina pull itself out of one of its worst economic crises: triple-digit inflation, foreign currency reserves in the red, tight currency controls to protect the peso, and the tail-end of a recession. But the two sides have a complex and mottled history, increasingly entwined after a $57-billion deal in 2018 and a $44-billion program in 2022 to help roll over payments from the previous program that failed to halt an economic slide. Many in Argentina blame the IMF for exacerbating a historic crisis in 2001 and 2002 by pushing tough austerity on a country already suffering, and protests in Buenos Aires often feature placards criticizing the lender. "All past experiences with the IMF in our country have been terrible," leftist lawmaker Myriam Bregman told Reuters during a recent street protest led by pensioners reeling from spending cuts by the libertarian government of President Javier Milei. "Many Argentines will not be able to retire," Bregman added. Governments across the political spectrum have been forced to go to the IMF over the years to seek help in battling regular fiscal deficits, stubbornly high inflation and inefficient economic production pushing Argentina into cyclical crises. The lender has recognized its own shortcomings in dealings with Argentina, saying its policies failed to achieve the proposed objectives. Milei, and investors, hope this time will be different. The president, a former economist and political outsider, has already made huge cuts to spending. That contributed to a rare fiscal surplus last year, even before any demands from the IMF, which usually insists that loan programs be linked to economic reforms and targets. Milei's measures have helped stabilize the economy, cut inflation and restore some confidence in markets, and he says they are tougher than what the IMF would seek. Economic growth, employment and the poverty rate, which took a massive hit after he took office in late 2023, have also started to improve. BOOM-AND-BUST A major exporter of soy, corn and beef, Argentina was one of the world's wealthiest countries per capita a century ago, but fell prey to a boom-and-bust cycle that has seen it regularly return to global lenders, including the IMF and the Paris Club, plus swap lines with the People's Bank of China. It has also had a complex relationship with private lenders. It carried out a major bond restructuring in 2020 to avoid a messy default, in the shadow of non-payments hanging over it from an economic crisis in the early 2000s. Argentina took multiple loans from the IMF each decade from the 1950s to the 2000s. There was then a 15-year hiatus until a record $57-billion bailout in 2018 under conservative President Mauricio Macri that ultimately failed to put South America's second-largest economy back on its feet. That failed program was replaced in 2022, agreed by the then left-leaning Peronist government, to restructure some $44 billion owed from the previous program. On the streets of Buenos Aires, residents had mixed feelings towards the new program. "When someone says yes to a loan, it's positive because it means they trust you," said 56-year-old Pablo Inzua. But he warned the country had been burned before by taking on too much debt. Maria Del Valle Romano, a 68-year-old retiree, said she was entirely against it. "I don't like it," she said. "When Macri was in government, he already went into debt for I don't know how many billions, now this one for another bunch of billions. How much more debt is this president going to get us into?" Washington-based analyst Nicolás Saldías at the Economist Intelligence Unit said, unlike previous presidents, Milei's commitment to market reforms and fiscal balance meant that this time Argentina could implement and stick to the terms. "Milei is more IMF than the IMF - he doesn't come empty-handed and has more than satisfied many of the Fund's conditions," he said.
