ARGENTINA

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Due to the extremely serious economic crisis gripping the country, media outlets continue to find themselves in dire financial straits. The drop in sales has been halted and advertising is no longer in decline, but after surviving several years of a plummeting economy, many newspaper companies are in debt and still must make their payments in dollars, after a devaluation that left the Argentine peso worth one-third the value of the U.S. dollar. Small and medium-size businesses in Argentina pay a value-added tax of 10.5%. However, this does not apply to newspapers of this size, which must pay double that amount. This flagrant discrimination has been pointed out by groups representing this activity. The heavy and disproportionate tax burden aggravates the critical situation of all Argentine media outlets, but in the case of small and medium-size newspapers it is based on inexplicable discrimination. A press delegation met with President Néstor Kirchner and warned him that unless specific measures are implemented, many publications will be in serious danger of shutting down, especially in small towns in the country’s interior. He was also told that news companies have accumulated tax debts due to difficulties in making payments. The president gave his assurance that he would seek prompt, lasting solutions, but none have been forthcoming. In a surprise move that deeply shook the journalistic community in Argentina, the offices of the newspaper La Nación were raided on May 29 under an order issued by Federal Judge María Romilda Servini de Cubría. The judge was investigating a report published in a sensational weekly on alleged tax evasion and money laundering by some of the newspaper’s shareholders. La Nación revealed some startling facts surrounding the raid, which is unprecedented in its 133-year history. It stated that ever since it began to renegotiate its debt for the installation of a new printing facility, its publishing company was targeted by a demonstrative smear campaign. “It seems to be part of an attempt to weaken it so that hostile interests can acquire part of its shares by purchasing its debt at devalued prices,” the newspaper stated. In another case that has revealed serious problems in the judiciary, the case against Ernestina Herrera de Noble, editor of the newspaper Clarín, was finally dismissed. She had been charged with irregularities in the adoption of her children. Last January, Judge Roberto Marquevich tried the publisher and actually sentenced her to prison, but this measure was overturned by an appeals court in San Martín, which issued sharp criticisms of the judge. The appeals court removed Marquevich and the case was transferred to Judge Conrado Bergesio, who dismissed the charges against Herrera de Noble. The newspaper Clarín called attention to certain suspicious facts. Even though the charge — alleged use of a counterfeit government document — did not require the editor to be kept in custody, she spent two days in jail and another three under house arrest. Also, the judge tried her on a court holiday, when only emergency cases are heard. Marquevich faces impeachment proceedings before the Board of Judges. The Argentine journalistic community expressed its deep concern and objections concerning Emergency Decree 1214/03, whereby the federal executive branch amended the Radio Broadcasting Act. With this move the administration not only introduced highly questionable changes, but also assumed legislative powers that are strictly forbidden to it under the country’s Constitution. On May 19, the executive branch, exercising legislative powers, ordered the replacement of Article 11 of Law 22.285 on Radio Broadcasting, by invoking the provisions of Article 99, paragraph 3 of the Constitution. Under this measure, provinces may, after obtaining a single permit, provide an over-the-air television service and an AM radio broadcasting service, while municipalities may provide an FM radio broadcasting service. In both cases, the stations may sell advertising and will not be subject to an open, continuous bidding process. These changes will deal a setback to diversity in broadcasting. They also represent government interference and an attack on the Constitution, which states that “…the executive branch may not under any circumstances issue provisions of a legislative nature, under pain of absolute and irreversible invalidation.” There have been no important developments in the money-laundering investigation into the triangulation of illegally obtained funds with foreign banks that re-enter the economic scene to acquire companies, including printing, radio and television companies. A legislative committee found serious irregularities. On top of these unpleasant revelations, some newspapers have gotten away with unfair labor practices by forming of employee “cooperatives.” This weakens the workers’ position, since they are forced to submit to this scheme in order to keep their jobs. It also constitutes a disadvantage for, and unfair competition against, the companies that are operating legally.

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