Argentine judicial authorities are scrambling to recover an estimated $500mn lost to the state in what prosecutors describe as a “colossal” fraud scheme led by former president Cristina Fernández de Kirchner during her 2007–2015 tenure. The case, known as Causa Vialidad, has gained renewed momentum after the Supreme Court upheld Kirchner’s six-year prison sentence and her lifetime ban from public office.

The original ruling, delivered by Federal Oral Court 2 in 2022, found that 51 public works contracts in Santa Cruz province had been irregularly awarded to Lázaro Báez, a businessman with close ties to the Kirchner family. These contracts were marked by systematic collusion and inflated prices, leading to a calculated loss of ARS84.8bn — approximately $500mn at the time of the ruling. As reported by El País, court-appointed experts are now tasked with updating this figure in light of inflation and currency changes before launching a broad asset recovery operation.

The court will determine how much each of the nine convicted individuals must return. Besides Kirchner and Báez, those convicted include former public works secretary José López, several senior directors of Argentina’s National Highway Administration, and various provincial officials. If the funds are not voluntarily paid within ten days after the final evaluation, the court will begin seizing assets. Much of Kirchner’s estate, including two properties in Buenos Aires, 24 in Santa Cruz, and stakes in three family-owned companies, has already been frozen or transferred to her children, Máximo and Florencia Kirchner. However, the Public Prosecutor’s Office maintains these assets remain subject to confiscation if proven to be proceeds of corruption.

Amid these developments, controversy surrounds Kirchner’s current status under house arrest, which began last week. The court-ordered measure has been challenged both by federal prosecutors and the former president’s legal team. As Infobae notes, the Federal Oral Court’s decision to allow Kirchner to serve her sentence at her Monserrat residence has not only drawn objections from the prosecution, which argues she should be detained in a regular prison facility, but also from her own lawyers, who criticise the strict conditions, including her use of an electronic ankle monitor and restrictions on using her balcony.

Prosecutors Diego Luciani and Sergio Mola have insisted that the firebrand Peronist leader, a foe of current President Javier Milei, does not meet the criteria for house arrest, citing her good health, the lack of age-related vulnerability, and the availability of secure detention facilities for high-profile prisoners. In their 10-page submission, they stated: “There are no humanitarian grounds justifying an exceptional measure such as home detention.”

The debate has reached Argentina’s Cámara de Casación Penal, the nation’s highest criminal appeals court, which is expected to rule within days on the validity of the house arrest arrangement. Judges Mariano Borinsky, Gustavo Hornos, and Diego Barroetaveña of Chamber IV will also assess related challenges by other convicted officials.

Adding to the tension, Kirchner’s defence team has filed a formal request seeking clarity on whether she is allowed to use her balcony. The court’s restriction against behaviour that may “disturb the neighbourhood” has sparked legal ambiguity. Her lawyers argue that any lack of specificity could result in unjust sanctions, particularly in the context of a recent protest in Plaza de Mayo, where Kirchner addressed supporters via a pre-recorded audio message broadcast to the crowd.

The final ruling on her detention conditions, alongside the impending asset recovery process, may define the legacy of Kirchner’s legal battles and establish a precedent for how Argentine courts handle high-profile corruption cases.