Argentine Corruption Scandal Widens

The scandal centers on suspected illegal payoffs in a government-funded project to extend a natural gas pipeline in Argentina in 2005.

Last year, the local unit of Swedish construction company Skanska said it had discovered "irregular" payments in the project and fired a group of Argentine executives. Six of the former executives were detained recently and judicial authorities raided the offices of the company's local unit looking for evidence.

On Monday, Judge Guillermo Montenego said 12 local construction firms now also are under investigation in the scandal. Argentine newspaper Clarin reported the judge was looking into accusations that false receipts were used to conceal kickbacks.

Meanwhile, Kirchner, who is running for re-election in October, announced through aides that Juan Carlos Pezoa would be the new director of state-run gas regulatory group Enargas. The previous director became ensnared in the probe and was fired.

Kirchner's Cabinet chief, Alberto Fernandez, said the government would also take direct control of Enargas for at least 180 days.

"My only commitment is to the people," Kirchner declared Monday, vowing he would not flinch if he had to fire any more public officials.

Kirchner is favored to win the Oct. 28 election despite the scandal.