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    Argentina's No. 1 judge quits in face of investigation


    REUTERS, BUENOS AIRES
    Sunday, Jun 29, 2003, Page 7

    Argentina's top judge quit on Friday as Congress investigated him for fraud and other charges, a resignation that may boost new President Nestor Kirchner's political power.

    Kirchner had accused Supreme Court head Julio Nazareno, who had been on the nine-member court for more than a decade, of corruption and urged Congress to impeach and remove him from office.

    "He has presented his resignation," Gregorio Badeni, Nazareno's lawyer, told reporters.

    The Supreme Court had been in a battle with former President Eduardo Duhalde over what to do about an unprecedented recession that has made paupers out of tens of thousands of formerly middle-class Argentines.

    The court repeatedly struck down portions of Duhalde's austerity plans, including a decision to cut government workers' salaries and pensions to reduce a federal budget deficit.

    This infuriated investors and the International Monetary Fund, who found time after time that promised government austerity policies were put on hold after the court ruled against them.

    Kirchner, who took office on May 25, had planned to follow many of Duhalde's policies and anticipated a similar conflict with the high court.

    The lower house of Congress began investigating Nazareno earlier this month, accusing him of 22 charges, such as receiving a bonus for living outside of the capital when in fact he resides in Buenos Aires.

    Center-left Peronist Kirchner has already removed the top officers in the military and police force to strengthen institutions seen here as corrupt.

    Analysts said the key question was whether the process of replacing Nazareno would be subject to political pressures.

    Nazareno was appointed by then-President Carlos Menem, whose 1989 to 1999 administration was plagued by graft scandals.

    Menem chose four of the supreme court justices and there has been speculation that Kirchner simply sought to replace those judges with his own allies. Kirchner has said Supreme Court judges would be chosen independently of the government.

    "This is a political victory for Kirchner. Now the key is the objectivity with which Nazareno's replacement is chosen," said political analyst Rosendo Fraga.
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